Handling withholding in Purchase/Sales documents

The withholdings include a legal process in which the buyer entity retains a specific value to handle to the State or to be used as warranty. For example, if the person or company performing the sale is subject to withholding the buyer entity (Customer, Other Debtor, etc.) will not initialize the total payment of the invoice, withholding a specific percentage.

However, it is worth noting thatthe withholding only occurs at reception (Invoice issuing), that is, the invoice value is not influenced by the withholding (however, there is that note). When issuing the receipt, the Withholding value will be removed from the total value on the invoice, considering that the withholding tax amount is not paid.

This way, when an invoice is issued, the total value presented is not discounted from the Withholding value. In the case of a Cash Sale document, the total value already includes the withholding tax amount because it is, at the same time, an invoice and a receipt.