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Accrue Withholding at Receipt Accounting

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edited Aug 27, 2020 1:04PM in Tax & Global 4 comments

Summary

Accrue Withholding at Receipt Accounting Stage itself, not at Invoice Stage

Content

In the Standard Oracle functionality, we can only accrue Withholding at two points: Invoice creation or Payment creation. However, our client has a legal requirement to accrue Withholding at Receipting and pay it off immediately to the Tax Authority without waiting to receive the Invoice.
 
For the Suppliers who qualify for Withholding (based on the WHT Classification Group attached at the Supplier Master), the Withholding should get accrued at Receipt Accounting Stage itself, just like how it calculates Transaction Tax at Receipt Accounting.  Because of absence of this Feature, our client cannot use the standard Withholding Functionality at all, since 90% of their Purchases that are liable for Withholding accrue at the Receipting stage. Hence, they're now handling it via tedious workarounds like creating manual AP Invoices for WHT amount and paying to the tax authority at the Receipting stage. 

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