Bills with Withholding Tax: Implementation Checklist
The following sections provide details you can use to ensure that the system is configured properly for processing a bill to which a withholding tax has been applied, and to understand (and change, if needed) the settings that affect the processing workflow.
Implementation Checklist
We recommend that before you initially process a bill with a withholding tax, you make sure the needed features have been enabled, settings have been specified, and entities have been created, as summarized in the following checklist.
| Form | Criteria to Check |
|---|---|
| Enable/Disable Features (CS100000) | The VAT Reporting feature has been enabled. |
| Vendors (AP303000) | A vendor set up as a tax agency has been configured. For details, see Tax Agency: To Set Up a Tax Agency for VAT. |
| Tax Categories (TX205500) | The needed tax category has been created as described in Withholding Taxes: Implementation Activity. |
| Tax Zones (TX206000) | The needed tax zone has been created as described in Withholding Taxes: Implementation Activity. |
| Reporting Settings (TX205100) | A tax report has been configured as described in Tax Report Configuration: To Create a Tax Report for VAT. The tax report settings have been updated for the withholding tax as described in Withholding Taxes: Implementation Activity. |
| Taxes (TX205000) | A withholding tax has been configured as described in Withholding Taxes: Implementation Activity. |
| Release Tax Report (TX502000) | A tax report for the 01-2024 period has been released as described in Tax Report for VAT: Process Activity. |
Other Settings That Affect the Workflow
The following settings and entities should be specified and defined, respectively:
- The following general ledger settings should be specified on the
Posting Settings tab of the General Ledger Preferences (GL102000) form:
- Make sure that the Automatically Post on Release check box is selected. This setting causes GL batches to be immediately posted after they are released.
- Clear the Generate Consolidated Batches check box to cause every AP transaction you enter to be posted as an individual batch to the general ledger. (When this check box is selected, the system consolidates into a single batch all transactions in the same currency posted to the same period for all documents being released.)
- The following accounts payable settings should be specified on the
General Settings tab of the Accounts Payable Preferences (AP101000) form:
- Select the Hold Documents on Entry check box in the Data Entry Settings section. This setting gives the created AP bills the On Hold status.
- Clear the Require Vendor Reference check box in the Data Entry Settings section. This setting means that you do not have to enter a payment reference number in the Vendor Ref. box when creating an AP bill on the Bills and Adjustments (AP301000) form.
- Make sure that the Automatically Post on Release check box is selected in the Posting Settings section. This setting causes AP bills to be automatically posted to the general ledger once they are released.
Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you process a bill with a withholding tax by performing instructions similar to those described in Bills with Withholding Tax: Process Activity.