Currently, such ‘withholding tax’ entry is computed manually and entered as adjustment within the payment.

Provide automatic adjustment (based on selection from table i.e. tax class) in AP payment type of check processing to effect tax regulator's requirement for automatic computation of withholding tax (recognized on payment).

Further, on vendor profile an additional tax profile can be tagged for this (as distinct from tax group referenced on AP invoice but working similarly except where timing is on payment).

Specifically for the Philippines but other territories with GST/VAT and withholding tax can also use this. Withholding tax is tax withheld by vendor acting as collecting agent for the tax authority.

by: Rafael L. | over a year ago | Financial Management