| # Withholding tax on payment postings Postings for withholding tax on payment of the purchase invoice Step 1. Purchase invoice registration If you register the purchase invoice, ERP LN creates the following postings:
Amount | Debit/ Credit | Ledger account | Defined in session
--- | --- | --- | ---
Costs | Debit | Account of the invoice line | Depends on the set up.
Interim VAT on payments | Debit | Purchase Tax on Payments (Interim) of the VAT tax code | Posting Data for Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000)
Accounts payable | Credit | ACP control account | Accounts by Financial BP Group (tfacp0110m100)
. Step 2. Purchase invoice payment If you finalize the payment of the purchase invoice, ERP LN creates the following postings:
Amount | Debit/ Credit | Ledger account | Defined in session
--- | --- | --- | ---
Accounts payable | Debit | Control Account | Accounts by Financial BP Group (tfacp0110m100)
Interim VAT on payments | Credit | Purchase Tax on Payments (Interim) of the VAT tax code | Posting Data for Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000)
VAT Reveivable | Debit | Purchase Tax account of the VAT tax code
Social contribution payable | Credit | Purchase Tax account of the Withholding Social Contribution tax code
Social contribution expense | Debit | Social Contribution (Company Expense) account of the Social Contribution (Company Expense) tax code
Social contribution payable | Credit | Purchase Tax account of the Social Contribution (Company Expense) tax code
Income tax payable | Credit | Purchase Tax account of the Withholding Income Tax tax code
Bank | Credit | Account selected for the transaction type used for the bank in Cash Management. |
. Related topics Withholding tax paid periodically - postings Withholding tax postings To process tax declarations |