WWW.ERPTREE.

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Application: Oracle Payables
Title: Withholding Tax
Content:
About Withholding Tax…………….………………………………….3
Setups for Withholding Tax……………………………………………2
1. Enable Withholding Tax In Payable Option…………..………....4
2. Create Special calendar………………………………………..…5
3. Create Tax Authority As supplier……………………………..….6
4. Create Tax Code……………………………………………….....9
5. Create Tax Group……………………………………………...…10
6. Assign Withholding Tax Group At Payable Options…...….……11
7. Enable Withholding Tax Option at Supplier Header and Site
Assign Tax Group ………………………………….....................16
Test Case……………………………………………………….….…..16
Reports…...............................................................................................18

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 If Customer Want To With Hold The Tax Amount Charged By Supplier In The Invoice, And
He Want To Pay The Tax Amount Directly To Tax Authorites Instead Of Paying To
Supplier.
Systam Will Automatically Create A Withholding Tax Invoice.
In This Case Tax Authority Would Be A Supplier

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Step-1 Enable Withholding Tax in Payable Option
Application: Account Payables

Nav: Setup  Options  Payable Options

1. In Payable Option Window Under WITHOLDING TAX Tab, Enable Use Witholding Tax
2. In Apply Witholding Tax Region Enble At InvoiceValidation Time SystamWill Apply
Witholding Tax At Validation Time
3. In Create Witholding Invoie Enable At Invoice ValidationSystam Wiil Create Witholding
Invoice When You Click On Validation

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 Step-2 Create Special Calendar
Application: Account Payables

Nav: Setup  Calendar  Spcial Calender

1. Select Type Of Calendar As Witholding Tax

2. Enter Special Calendar Name
3. Save The Calenda

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Step-3 Create Tax Authority as Supplier
Application: Account Payables

Nav: Supplier  Entry

1. Enter Organization Name And Supplier Number

2. Click On Apply

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1. Click On Organization Hyper Link
2. Under Organization Select The Type As Tax Authority
3. Click On Save

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 1 Tax Authority Created As Supplier

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Step-4 Create Tax Codes
Application: Account Payables

Nav: Setup  Tax  Witholding  Code

1. Select Operating Unit

2. Enter Tax Code And Select Tax Authority
3. Enter GL Account Code Combination
4. Select Flat Rate And Select Special Calendar Which We Created
5. Select Tax Rate Type As Standard And Enter Rate
6. Save It

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 Step-4 Create Tax Group
Application: Account Payables

Nav: Setup  Tax  Witholding  Group

1.In Witholding Tax Group Window Select Operating And Enter Rank

2. Select Tax Code which We Created

2.Save It

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Step-5 Assign Withholding Tax Group At Payable Option
Application: Account Payables

Nav: Setup  Option  Payable Option

1.In Payable Option Window Under Witholding Tax Select Tax Group Which We Created

2 Save It

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 Step-6 Enable Withholding Tax Option At Supplier Header And Site And
Assign Tax Group
Application: Account Payables

Nav: Supplier  Entry

1.Select Your Supplier

2.Click On GO

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 Select Your Supplier Click On Update

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 1.Click On Tax Details Hyper Link

2.Enble Withholding Tax

3.Select Invoice Withholding Tax Group Which We Crated

1. At The Same Page Go To Supplier Site

2. Enable Allow Tax Withholding And Select Invoice Withholding Tax Group
3. Click On Save

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Change Ton Tax Details Have Been Saved

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Step-7 Create Invoice against Supplier
Application: Account Payables

Nav: Invoice  Entry  Invoice

1. Select Your Operating Unit And Invoice Type As Standard

2. Select Trading Patner And Site
3. Enter Inoice Date And Number
4. Invoice Amount

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1. Go To Actions Tab Click On Validate System Will Calculate Withholding Amount

1. Query The Invoice Typeas Withholiding We Will See The Withholding Invoice Which Is
Created By System Automatically

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 Step-8 Run Invoice Register from Account Payable Responsibility
Application: Account Payables

Nav: View  Request  Submit New Request

1. Name Invoice Register

2. Operating Unit Test Operating Unit1

3 Supplier Name Test Tax Authority

4.Invoice Type Withholding Tax

5. Click On Ok

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 Withholding Tax Account Entries

1 when we create withholding tax invoice

Item Expense A/c Dr ……….$100000

Liability A/c Cr…………………………….…$80000

Withholding Tax A/c Cr…………………..$20000

2 When We Pay Withholding Amount

Liability A/c Dr……….Dr20000

Cash clearing A/c Cr……………….20000

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Thanks for reading this Article
(Oracle Apps Knowledge Sharing Center)

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