When you pay advance to vendors and if those vendors are subject to withholding tax on their bills payment , NetSuite is ignoring advanced amount for the withholding tax basis ( NetSuite will consider only the amount still due as basis for withholding tax) so, how is withholding tax applied on the full amount including prepayments?

AI generated answer (using internal Slack threads):

In NetSuite, when you make an advance payment to vendors, and those vendors are subject to withholding tax on their bills payment, NetSuite does not consider the advance amount for the withholding tax basis. Instead, it only considers the amount still due as the basis for withholding tax. However, if you want to apply withholding tax on the full amount including prepayments, you might need to adjust your process. One way to handle this is to create a Journal Entry to record the advance payment, setting the vendor name on the Name column. This will make the amount available on Vendor Payment to apply to a Bill at a later point in time. You just need to use the account payable account, the counterpart could be anything. When you create a bill of a purchase order and prepay for the item, the GL impact after the bill is paid puts it into accrued purchases. Then, when it is received, it gets "moved" to inventory asset. If you get a vendor credit or cash refund, you might need to create another Journal Entry to adjust the accounts accordingly. Please note that this is a general approach and might need to be adjusted based on your specific business processes and accounting requirements. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******