Enter Supplier Income Type

Explanation

Use this window to enter or modify existing supplier income types. Income types are defined for supplier invoice lines to identify and categorize payments to suppliers for income tax reporting and/or withholding, such as Form 1099 tax reporting and withholding in the United States. The type of payment and total amount paid to the supplier determine whether payments to that supplier must be reported to the appropriate tax authority, and whether taxes must be withheld on those payments. In the United States, the threshold amount is used to determine the minimum payment per year to a certain supplier that must be reported as supplier income.

Supplier income types for the United States that are inserted at system installation are not possible to remove, since they are used to generate the 1099 reports for US tax authorities. Supplier income types are unique to each country. Within a company, it is only possible to use supplier income types with currency codes corresponding to the accounting currency..

Prerequisites

This activity requires that a company exist in IFS Financials.

System Effects

As a result of this activity, supplier income types can be defined for invoice lines and thereafter used to identify different categories of payments for tax reporting and withholding.

Window

Income Types

Related Window Descriptions

Income Types

Procedure

  1. Create a new record.
  2. In the Country Code field, use the List of Values to select the code representing the country to which the supplier income type applies.
  3. In the Supplier Income Type ID field, enter an alphanumeric ID for the supplier income type. In the Description field, enter the corresponding description.
  4. In the Threshold Currency Code field, use the List of Values to select the currency in which the threshold for the supplier income type is expressed. In the United States, the threshold is the minimum annual amount of payments to a supplier for which tax reporting is required.
  5. In the Threshold Amount field, enter the amount of the threshold.
  6. Save your changes.