Creating withholding codes

  1. Select Financials > Payables > Payables Setup > Payables Codes > Withholding Codes.
  2. Click Create.
  3. Specify a Vendor Group, Withholding Code, and Description.
  4. Click Save.
  5. On the Withholding Code Details tab, click Create.
  6. Specify a Company and a Withholding Account.
  7. Click Save.
  8. If the Vendor Group has enabled the global withholding option, specify the Currency for the invoice entry.
  9. 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.

    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.
  10. Click Save.
  11. 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.
  12. Click Save.