ERPstuff - Oracle EBS Community

Hi All,

Please explain me how to define with holding Taxes and how to attach it to AP Invoice.


Thanks in Advance...


Surya.

Hello.

Basically, you need to create Tax Codes of the Type Withholding (Setup/Tax/Codes). Then, using the Tax Codes you will need to create Tax Groups. Finally, to put this working you need to pick up which supplier sites are going to use Withholding Tax and activate that flag and the Tax Group you want to use. You will also need to define how do you want the tax to be withheld ? when you validate an invoice or when you pay it(Payables Options).
I advice you to read the User Guide because this is not a simple task.

Octavio

[:p][8D][^]

Steps:

1.Define Tax authority Supplier
2.Define Special Calendar (WT)
3.Define Withholding Tax Code.
a. Assign the tax authority supplier
b. Select Tax Structure options.
c. Provide the Tax Rate.
4. Create Withholding Tax Group. (It is created automatically if create
tax group is selected at withhoding tax code level.)
5. Go to Payables Options :-
a. Go to withholding Tax Region and Check Allow withholding tax.
b.Select When Tax Should be Deducted i.e at Invoice Validation
time or Payment.
c. Select When the Withholding Tax invoice should be Created.
6.Assign the Withholding Tax Group to the Original Supplier.

7. Record an Invoice and Validate the Invoice. See that W.Tax is
Deducted and W.Tax line is created in the Distribution.
8. Now Inquire on the Tax Authority Supplier and see that the
Withholding Tax Invoice is created automatically.
9. Inquire on the Withholding Tax
10. Reports are also available.

Thanks both of you...

Hi Octavio

I would like to ask you a question. If the supplier allowed with withholding tax & make the prepayment for this supplier.

I want to create this type of invoice (prepayment) without calculate the withholding tax amount because now I have this problem.

Can you help to restrict this action in the prepayment?

Thanks
Hisham

Hello Hisham.

Yes, you can tell the system not to withhold tax on Prepayments. When entering the prepayment, press the Distributions button and delete the Withholding Tax Code that the system placed in the Tax Code column. After that, you can validate the invoice and no tax will be created.
If you want the system to do this for you perhaps you can personalize the form in order to have no Withholding Tax when the invoice is of Prepayment type.

Octavio.

Hello Octavio

Many many thanks for your help.

Hisham

I have created withholding Tax, and assigned WHT group to a supplier. When i create the invoice of that particular supplier, system is automatically creating withholding tax invoice. But my problem is i wanted to get withholding tax for certain invoices only, not for all invoices. Please advise me how to get this.


Thanks,
Surya

Hi Surya

Like Octavio say, you can use the personalization in the invoice form & you can define DFF in the invoice form then assign to each invoice the type.

Use the personalization to make the WHT is null if the DFF type equal your conditions.

Thanks
Hisham