Hi all
For April 2017 as a Sole Trader I created an invoice for work performed and sent this to my employer, who has now paid the invoice but has also withheld tax according to the new withholding tax/schedular payments (PAYG) rules in NZ for 1 April 2017 onwards.
However, when I created the invoice I didn't create a line item on the invoice for the new withholding tax/schedular payments (PAYG). i.e. I just created the invoice with a single line item for Fee Income, obviously adding GST on top etc.
So lets say the invoice was for $14000 to allocate to Fee Income, with GST of around $2000, so invoice was for $16000 overall, and I was paid $12000, where my employer has withheld $4000 to pay to Inland Revenue.
I have a bank feed set up, so when the $12000 was paid into my business bank account, this came across to MYOB Essentials, but of course now doesn't automatch to the invoice (as the payment was $12000 and the invoice was $16000).
So my question is - in MYOB Essentials, how do I now handle the 'missing' part of the invoice for the $4000 that was withheld?
I've created an Account called Withholding Tax Paid / PAYG Withholdings Paid, but can't seem to see how I allocate the $4000 to this account now that the invoice has been sent and paid.
BTW, I set up this account as an Equity account, as that is what I previously did to account for Resident Withholding Tax for bank interest as previously advised by MYOB (hope that information was correct, as some people use Asset accounts but yet others use Liability accounts for this - but any thoughts on the account types for these two accounts would be welcomed).
Anyway, for my main question - any help that the Community could provide would be really appreciated :-).
Warmest regards,
Tony