Withholding Management

Conceptual framework

From the taxing power of the State arise obligations to give, to do or not to do, they are originated when the corresponding budgets foreseen in the law or in the regulations as the case may be, as generators of the same, are realized. The obligation to support the State arises therefrom; acting as the active subject of the obligation and the taxpayer as the passive subject.

The State anticipates the collection of taxes at the time a purchase or sale transaction is made, generating a discount, inclusion as a greater value or a self-withholding.

Scope

Corresponds to the functionality required for the calculation and accounting of the different taxes; Income, Industry and Commerce, Stamp, Value Added Tax (VAT), which are presented according to the fiscal characteristics of the third parties (customers or suppliers) involved in the transactions carried out.

Withholdings application on purchase invoices

When entering a transaction corresponding to a purchase invoice, the system will calculate all withholdings automatically. These will be calculated based on the withholding codes assigned to each Partner.

Withholdings application on sales invoices

When entering a transaction corresponding to a sales invoice, either directly from finance or automatically generated from a sales order from the logistics module, the different withholdings are calculated and accounted for according to the withholding codes assigned to the customer.

Application of withholdings on credit note

When entering a credit note transaction for sales or for purchases, the different withholdings are also calculated and posted according to the withholding code settings established for the Partner, or the one assigned by the user in the transaction. In this case, the application will correspond to a reversal of taxes.

Others Partner records

This option allows you to record an income or expense corresponding to one or more beneficiaries other than the Partner, in order to obtain disaggregated information in accordance with fiscal regulations. These operations can be, invoices or journal transactions (for reclassification of withholdings).

The following information must be completed at the Master Data level, so that the different withholdings are automatically calculated and posted at the time of any transaction, allowing the data to be properly stored, in order to be able to provide the legally required tax information.