Allday Consulting's Peachtree and QuickBooks Support Boards

Hi,
I have a problem with recording of Fed Withheld tax for Non resident vendors.
I record vendor's invoice in full, but in fact I have to pay only difference between amount of invoice and Federal Withheld Tax and submit this tax to Government.
What is the correct way to do these entries?

Exactly how to do it depends on whether you use QB or PT, but what you need to do is to set up a Sales Tax Item (assuming these are always for the same %age), with the Federal Government [tax agency] as the Tax Agency to whom the taxes are owed. Apply this Item to the appropriate Invoices to calculate the tax and mark it as a Current Liability which will show up in your Sales Tax Liability reports.

My first step was to record invoice - expense acc+tax liability acc+GST acc, then I paid vendor's invoise only for expens+GST, and cleared Tax Liabily when submited Tax to Gov. But in my A/P Vendor's invoice was shortpaid on amount of Tax Liability and this is my problem - I do not know how to clear - issue Cr.Note?
Can I record exp and tax liability together as expenses? then clear difference with Cr.not - to keep A/P clean and then make a JE with memo related to vendor Debit-Tax Expense, Credit - Tax Liability , Debit Tax Liability and Credit Cash - when I submit Fed.Withheld Tax to Gov.

In my case our company fully responsible for deduction and submision of Fed.Withheld Tax from Non-Resident vendors' invoices. I am using QB Pro 2007.

That sounds like more of an "accounting" question -- It's a bit over my head, as I'm just a technician.

I would recommend asking on QuickBooks' own message boards -- they're free, too, and a number of accountants hang out there.

Here's a link to their "Paying Bills and Vendor Management" forum, please repost your question (both parts) in there:

http://www.quickbooksgroup.com/.ee8e2e0/

I hope this helps