Exact Globe

Product Updates 421 and 420: Improvements of the reversal withholding tax amount (Italian legislation)

In the previous product update, Exact Globe Next introduced a functionality that creates withholding tax offset entries and reverse withholding tax offset entries. When you have partially paid an invoice and the remaining outstanding has been written off for discounts, bank charges, and other options, the withholding tax amount is reversed proportionally. However, the withholding tax amount should be reversed completely since there is no more outstanding amount for the invoice. For more information, see Product Updates 421, 420, and 419: XML file enhanced for withholding tax functionality (Italian legislation).

In this product update, if the invoice is partially matched and the write off option is not Balance (for example, discount, bank charge, and others), the remaining withholding tax amount will be fully reversed. However, if the invoice is partially matched and the write off option is Balance, the withholding tax amount will be reversed proportionally.

Note:

• The value “WH tax sales retain”, “WH tax sales to deduct”, and “Withholding tax” journal must be provided to generate the withholding tax offset entry.
• This functionality is applicable only if the outstanding invoice amount written off option is not Balance.