KCS - How Do I Withhold Tax on an Invoice?

Objective:

  • To determine the workflow for withholding tax on invoices.
  • To determine how to apply a deduction on an invoice and have it appear credited. 

Environment:

  • Clio Web App

Additional Information:

This is a workaround process for firms that need to withhold tax and have it appear as a credit on an invoice.

Withheld tax is a deduction of a specific percentage from the total invoice.

Procedure:

  1. Ensure that tax is not being applied to the Invoice
  2. Manually calculate the percentage of tax you would like to "withhold"
  3. Locate and view the Bill that you want to apply a write off on
  4. Click the Credit notes sub-tab
  5. Click Add credit note
  6. Enter any applicable information
  7. Click Save credit note
  8. On your invoice you should now see a negative value next to Credit Note
  9. Next, go to Settings
  10. Select Billing
  11. Select Bill Themes
  12. Select or copy the Bill Theme you would like to modify
  13. Select Localizations
  14. Select Matter
  15. Scroll to Credit Note and change it to "Withheld Tax" 
  16. Verify on invoice that deduction is visible with the desired localization

Please note that when you use that Bill Theme moving forward, Credit Notes will appear as "Withheld Tax."

 

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