To link a journal to the payment record.

We can create a journal and apply that journal to the bill payment record if we are not paying the full amount to the vendor.

In this case, we are only paying half amount to the vendor and the other half is coming as TDS. So for the half amount, we paid to the vendor will be applied in the bill transaction and the remaining amount is paid to the government as TDS.

Then half of the amount will be showing in the Accounts payable to be paid and the status of the bill will not be fully paid.

So we will create a journal, for eg:-

Accounts Payable     DR   5000

    TDS Payable              CR        5000

Bank A/C                 DR       5000

  TDS Payable            CR           5000

Here the amount in the Accounts Payable is transferred to TDS Payable account and TDS payable account is credited by debiting the bank account. This journal entry will set the amount in Accounts payable.

And also we will put the vendor name in the journal line under the vendor column. Then this journal will show in the payment record. We will apply this journal for that bill.

Leave a comment

Your email address will not be published. Required fields are marked *