How to process Foreign Supplier Invoices where Withholding Tax is liable

1 Ensure foreign currency rates are set up. Refer to Configure Foreign Currency Codes for process.

Ensure supplier's VAT/GST status is set up correctly. If a PO is created when the supplier was not registered for GST, and you later find out the supplier is registered for GST you have to cancel the PO update the supplier record to reflect correct WHT status and create a new PO.

Note: WHT is NOT calculated on the PO

In this example the details are
1 supplier cost is SGD1000.00
2 VAT is Nil
3 WHT is SGD100.00

Note: WHT is calculated at 10% of cost on supplier invoice i.e. IDR 1066175.90
Cost of revenue is IDR 10661758.96
Trade Creditors is IDR 9595583.06

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