To pay withholding tax at invoice payment

Differences between Infor LN FP2 and Infor LN FP3.

In some countries, for example, in Spain and Italy, you must pay withholding tax immediately when you pay the purchase invoice.

Infor LN FP2 only supports periodic payment of withholding tax and social contributions. You can periodically generate a tax declaration of the withholding tax and pay it to the collections office.

In Infor LN FP3, you can set up withholding tax in such a way that LN pays withholding tax immediately when you pay the purchase invoice.

In the Pay Tax field of the Tax Codes by Country (tcmcs0136s000) session, you can select the moment at which you must pay the withholding tax and social contributions to the tax authorities. If you select At Invoice Payment, you must specify the collection office and the settlement tax code for the tax code.

When you generate a tax declaration, LN does not include tax codes for which you select At Invoice Payment. When you pay a purchase invoice with such a tax code, LN automatically generates a standing order in Cash Management to pay the tax to the collection office.

The standing orders for withholding tax are created at the moment when the open invoice balance for the business partner is reduced.