Creating withholding codes
- Select Financials > Payables > Payables Setup > Payables Codes > Withholding Codes.
- Click Create.
- Specify a Vendor Group, Withholding Code, and Description.
- Click Save.
- On the Withholding Code Details tab, click Create.
- Specify a Company and a Withholding Account.
- Click Save.
- If the Vendor Group has enabled the global withholding option, specify the Currency for the invoice entry.
-
On the Global
Withholding tab, specify this information:
- Type
- Select from these options:
- Accrued
The withholding amount is accrued at invoice release time. This splits the invoice accrual between the amount being paid and the amount being withheld.
- Payment
The withholding is deducted and will be calculated and posted at time of payment.
- Accrued
- Accumulated
- Select this check box to calculate the withholding amount using accumulated amounts throughout the entire month. This option only works for Payment type.
- Include Tax
- Select this check box to include tax when using an invoice amount to calculate the withholding.
- VAT Withholding
- Select this check box to calculate the withholding amount on the VAT TAX amount only.
- Click Save.
-
If the Vendor
Group has enabled the global withholding option, on the
Withholding Rate
tab, specify this information:
- Effective Date
- Specify the effective date of the rate associated to the withholding code.
- Category
- Optionally, specify a category to accept different rates with the same withholding code.
- Rate
- Specify the rate used to calculate the withholding amount. This applies to Vendors not enrolled in a country withholding program.
- Minimum Withholding
- Specify the minimum amount allowed by the country before withholding can occur. This applies to Vendors not enrolled in a country withholding program.
- Minimum Invoice Amount
- Specify the minimum invoice amount allowed by the country before withholding can occur. This applies to Vendors not enrolled in a country withholding program.
- Exempt Amount
- Specify the amount not subject to withholding. This applies to Vendors enrolled in a country withholding program.
- Withholding Scale
- Specify the scale amounts. This applies to Vendors enrolled in a country withholding program. See Creating a withholding scale.
- Enrolled Rate
- Specify the rate used to calculate the withholding amount. This applies to Vendors enrolled in a country withholding program.
- Enrolled Minimum Withholding
- Specify the minimum amount allowed by the country before withholding can occur. This applies to Vendors enrolled in a country withholding program.
- Click Save.