Enter Supplier Tax Withholding Lines
Explanation
Use this activity to enter tax lines for tax withholdings on payments to the specified
supplier. In the United States, this is known as Form 1099 income tax withholding.
Withheld tax amount is always calculated with the net amount of the invoice line as
base.
Prerequisites
This activity requires that:
- A supplier and company exist.
- At least one tax code with the Tax Withhold tax type be entered in the
Accounting Rules/Tax/Tax Codes window if tax withholding lines should be created
automatically for each invoice line.
- The Supplement Tax Withholding check box be selected if taxes are
to be withheld separately for federal and state purposes on invoice lines.
- The appropriate supplier income types be defined in the Enterprise/Tax/Income Types window.
- A supplier income type has been defined for the actual invoice line.
System Effects
As a result of this activity, taxes are withheld as specified on each invoice line,
when the invoice is posted. Right after the invoice is posted to a voucher of function
group I, a withholding payment transaction will be started automatically, provided that
IFS/Payment is installed. The postings connected to this payment transaction are created
on a voucher belonging to function group U.
Windows
Manual Supplier Invoice
Related Window Descriptions
Manual Supplier Invoice
Procedure
To enter tax lines:
- Query for an invoice, or enter a new one.
- In the Line Information area, select an invoice line.
- Define a supplier income type for the invoice line.
- Right-click and then click Tax Withholding/Reporting. The
Tax Withholding/Reporting window
appears.
- Add, change, or delete tax withholding lines as necessary.
- If the Supplement Tax Withholding check box was selected on the
Enterprise/Company/Tax Control tab, select a report code from the List
of Values. This specifies whether the withholding is for federal or state purposes. If the
tax line is for state withholding, the state connected to this report code must have been
defined in Enterprise/Supplier/Invoice/Tax Withholding/Reporting.
- If the Correspondence, Invoice Net Amount - Tax
Withholding Base Amount check box is selected in the Enterprise/Company/Tax
Control/Invoice tab, the tax
base amount on the tax withholding lines are required to equal the net
amount of the invoice. This only applies when the withholding base amount of
the supplier is Invoice Net Amount.
- Save your changes.