Overview

Payment and payable endpoints mounted at /payments.

Withholding tax on payments

An allocation can withhold tax from the vendor by carrying a withholding tax profile (a tax profile with kind of WHT).

The allocation amount is still the gross amount settled against the bill, so the bill is cleared at its full value. The tax withheld is the rate applied to the base, rounded to two decimal places. It is credited to the profile’s withholding tax payable account, and the cash leaving the payment account is the gross amount less the total withheld.

Without a wht_base, the base comes from the profile’s withholding_basis:

For example, take a 1,075.00 bill made up of 1,000.00 plus 75.00 VAT, paid in full with a 5% profile and no wht_base. With EXCL_VAT the base is 1,000.00, so 50.00 is withheld and 1,025.00 is paid out. With INCL_VAT the base is 1,075.00, so 53.75 is withheld and 1,021.25 is paid out. Either way the bill is cleared for 1,075.00.

Each allocation in a payment response reports wht_tax_id, wht_rate, wht_base and wht_amount. Allocations without withholding return a null wht_tax_id and 0.00 for the others.

Voiding a payment reverses the withholding along with the rest of the entry.

Early-payment discounts

A bill on a payment term with a discount can be settled for less than its balance while the discount window is open. The window and the amount are on the bill as payment_schedule.discount, with deadline and amount.

To take the discount, allocate the bill’s balance less the discount, with a payment_date on or before the deadline. More precisely, an allocation that falls short of the balance by no more than the discount settles the bill in full, and the shortfall is recorded as the discount.

For example, take a 100,000.00 bill with a 2% discount open until 28 June. Allocating 98,000.00 on 25 June clears the bill: the allocation comes back with an amount of 100,000.00 and a discount_amount of 2,000.00, 98,000.00 leaves the payment account and 2,000.00 is credited to Other Income.

An allocation dated after the deadline, or one that falls short by more than the discount, is an ordinary part payment and leaves the remainder outstanding. Withholding tax on the allocation is worked out before the discount is added.