Withholding tax on receivables payments

  1. Sign in as Receivables Specialist and select Cash Application > Select Invoices and Apply Cash.
  2. Open a payment record.
  3. Specify this information:
    Application Open Amount
    Optionally, modify the amount.
    Adjustment Reason
    Select an reason code. Use a Receivables Reason Code where the Receivable Adjustment Reason Type field is Tax Withholding.
    Adjust Amount
    Specify the amount of tax to withhold.
  4. Click Save. The Detail button is displayed.
  5. Click the Detail button. The Selected Application page is displayed.
    If the Receivable Company has an active Receivable Reason Code with Tax Withholding defined, the Income Withholding Code and Income Withholding Document Number fields are displayed as columns.
  6. In the Adjustments For Application section, specify this information:
    Income Withholding Code
    Select a withholding code to use to identify the type of Tax Code, for example, VAT. When the customer is reducing the amount being paid to the CSF client and instead paid a withholding/tax portion to the government. The AR Income Withholding Document Number is the number that the government issued to the customer showing that the tax has been paid.
    Income Withholding Document Number
    Specify the document number. In many South American countries, business activity such as invoices and payments must have a government issued number. This field is used to record the withholding document number and is interfaced to Localization Services Platform where it can be prefilled with zeros, if the user does not pre-fill them.
  7. Click Save.
    You can also withhold tax on receivable payments in the Apply Cash menu option.