Query Regarding Withholding Tax Voucher Cancellation

Hi Rakesh,

What is the type of customer invoice that you’ve used?

If it’s Manual Customer Invoice, you will have to right click > Cancel Invoice in Manual Customer Invoice window.

At the same time, can you please share the error?

Thanks and Best Regards

Madusha

Hi Madusha,

Its a Customer Order invoice.

B voucher is created automatically for withholding tax once the customer invoice is posted.

I want to reverse the entries of that voucher. But I am not getting any option.

A B voucher is a payment voucher.   I assume your customer order invoice is in a partiallypaidposted status.   You should be able to go to customer payment rollback to rollback the B voucher and then credit the customer order invoice- however you should try this in a test database first.

Hi @Rakesh 

Maybe you can try to create a credit invoice for the existing debit invoice. 

I don't think there is an option to correct the existing voucher. If you want to correct the existing payment data, probably we will have to correct the data via data repair.

Thanks and regards,
Viraj

Hi @Nancy Fink 

Yes you are correct customer order invoice is in a partiallypaidposted status.

But the B voucher got created as a result of Customer Tax Withholding not due to any payment. So, Customer Payment Rollback option is not applicable for me.

Hi @Viraj

I don’t think we can create Customer Credit invoice to offset Customer Tax withholding amount.

@Rakesh when you create a customer order invoice with tax withholding the system should automatically create a payment (B voucher) and change the status of the invoice to partiallypaidposted.  Are you saying if you go to customer payment rollback you are not finding the B voucher? 

Hi @Nancy Fink 

You are spot on.

How to do in that case? I want to reverse the voucher entries for B voucher created automatically for withholding tax.

@Rakesh 

I think the same reverse behaviour should be there when you create a credit invoice.

I hope the credit invoice will also be ended up with “Partlypaidposted” status. which means we should have a payment voucher with exact opposite amounts. (So both B vouchers will be offset each other)

I didn't check this in any environment yet. Maybe you can try this option in a TEST environment first.

Thanks and regards,
Viraj

@Rakesh -- I would suggest you log a support case as this should be looked at in more detail and tested in our CORE product based on your version.   I would be expecting the B voucher to be available in customer payment rollback screen.

Hi Rakesh,

Anyway, I checked in APP10 Core. And the following example will fix your issue;

Customer Order Invoice: 970200460

B Voucher created for the Invoice Reference: 970200460 with WHT postings

B Voucher is not shown in In Customer Payment Rollback since it’s an automatic payment receipt of WHT.

Use RMB “Create Credit Invoice” or RMB “Correction Invoices”. But, even if we select these 2 options, it will not create a reversal voucher, which means it will not enable cancellation of the invoice.

So as Viraj suggested before, this will require a data repair.

Maybe this can be further checked and confirmed by Rakesh in your environments and if recreating in all those environments, this can be reported to Product Development Team. So they will check and see if there’s any functionality behind this for not enabling cancellation of Customer Order Invoices with WHT in PartlyPaidPosted State.

Best Regards,

Rasangi

Hi Rasangi,

Thank you for the response.

So, creation of a Credit invoice having same Gross Amount should work for me?

Thank u so much @Rasangi Tilakaratne & @Viraj Sandaruwan.

It worked for me :)

@Rasangi Tilakaratne  & @Viraj Sandaruwan 

Similarly, for Supplier WHT “U”  vouchers, we will create Supplier Debit Notes for reversing the entries??

Thanks In Advance :)

Hi @Rakesh ,

For the supplier side, I think you can simply cancel the invoice. It will reverse I & J vouchers + U voucher.

Thanks and regards,
Viraj

Hi @Viraj Sandaruwan ,

But here also Supplier Invoice will be in “PartlyPaidPosted” status so it will not allow to cancel the invoice.

Moreover, for WHT no payment will be available for Rollback.

I guess, Supplier Debit Note will be created for reversing the U vouchers for WHT.

Humbly Request you to confirm me on this. So that I can confirm my customer.

Thanks,

Rakesh

Hi @Rakesh,

Have you tried it?

As I remember, we can cancel the invoice even though the invoice is in “PartlyPaidPosted” status. payment will be reversed automatically.

Thanks and regards,
Viraj

Hi @Viraj,

You are correct.

We can cancel “PartlyPaidPosted” status invoices using RMB.

Thanks a lot :)

Hi @Viraj Sandaruwan , @Rasangi Tilakaratne 

How to reverse voucher “B” created due to WTH for Customer Instant Invoice?? In this case, I assume we cannot create Credit Invoice as in case of Customer Order Invoice.

Waiting for your response.

Thanks In Advance :)

@ Rakesh,

I too agree with Viraj.

Anyway I have tried and confirmed the same in Core. Please refer the below example;

Supplier Invoice created by using a supplier enabled for WHT → Note: Invoice created in “PartlyPaidPrelPaidPosted” State with WHT Amount created

View Vouchers → Note U Voucher created with PP48 (Supplier WHT) posting;

If you want to reverse the postings; RMB “Copy and Cancel”/ “Cancel”

K Voucher created;

Invoice entry will be disappeared.

In Voucher Rows Analysis → Query for Reference No: (Invoice No.) → Check how the reversal entries were created as follows offsetting the original invoiced amounts including the WHT payment;

Best Regards,

Rasangi

Hi @Rasangi Tilakaratne ,

Thank u so much it worked for me for Supplier WTH.

Currently, I wanted to know how to reverse voucher “B” created due to WTH for Customer Instant Invoice?? In this case, I assume we cannot create Credit Invoice as in case of Customer Order Invoice.

Waiting for your response.

Thanks In Advance :)

Hi @Rakesh 

Maybe you can create a correction invoice and remove one line from it to make it like a credit invoice.

Thanks and regards,
Viraj

Hi @Viraj Sandaruwan ,

Thank you so much for your prompt response...

It will be really helpful for me if you can post all the screenshots regarding to this.

I am little bit confused with this single screenshot.

Thanks,

Rakesh

Hi @Viraj Sandaruwan 

It worked.

Thank u so much :)