I created new sales tax codes with multiple rates,
first rate is VAT 11% that goes to liabilty account
second rate is PPH 23 -2% that goes to assets account - PPH 23 prepaid
The problem is on the invoice, the PPH 23 -2% is not displayed.
Why is a tax code negative? Manager does not handle that. That would mean you must pay your customer every time they buy something from you. Or your supplier would have to pay you for buying from them.
Actually this is a workaround for withholding tax, because if I understand, when we check the withholding tax it will automatically goes to withholding tax account category. Plus, it is easier to use it this way because we don’t need to manually calculate it
I want to be able to change it into “PPH 23 prepaid” account, though it is in the same asset category.
So, the idea is for invoice with product and service. Product and service got VAT, but for service, we will be deducted this PPH 23, so the customer will deduct it from their payment and pay it to tax authority, we will get tax deduction receipt.
Is this not showing up because the coding of the theme or this is a system level coding?
You don’t have to manually calculate withholding tax. Just enter the percentage.
What you describe is withholding tax. You should use the built-in feature.
It is system-level coding. There is no such thing as a negative tax, so Manager does not allow it. Use the program as designed and forget your non-functional “workaround.” I don’t understand what you think you are working around.
Yes theoretically it should be fine, but on our reports it will be better to put it under custom name, in our country such as “PPH 23 Prepaid”, and categorized it at the same sub account of Advance Tax.
So, like I said, when we purchase product and pay VAT, then that VAT will be put on our Asset also right, usually it’s on Advance Tax, or VAT prepaid, or something similar, so this PPH 23 (tax for service) will be put under that same sub account also.
I think it will be better if we can add custom account (custom name) under withhold tax account, maybe Manager can put one field on the withholding tax menu where we can select account
Something like this
Manager does not have “sub accounts.” Comments that do not use the terminology of the program are confusing, because other forum members do not understand what you are referring to.
That is not how Manager works. Tax codes apply both debits and credits to the same tax liability account, where they offset one another. Your suggestion would be a massive change to one of the most fundamental aspects of the program.
Why? You can edit the name of the asset accounts associated with withholding tax.
@iman, you joined the forum only hours ago, but are suggesting extremely consequential changes to the program. You do not seem to be paying attention to the Guides. You have given no indication whether you have tried the solutions offered. I wonder why the many users from your country have never complained about this if it is, indeed, a requirement.
I suggest that before plunging into recommendations for such big changes to the program you create a test business and explore the workings of program’s existing features, used as designed and explained in the Guides.