
Oracle PeopleSoft Enterprise Financial Management 9.1 Implementation
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In many countries, organizations withhold (deduct) a percentage of the payment (as a tax to the government) while issuing payments to their vendors. For example, our organization purchases goods worth $10,000 from Computers Inc. Assume that this purchase attracts 30% tax for the vendor. In this case, Computers Inc. (seller) is liable to pay $300 on the sale of $1000. However, this tax amount is deducted by the buyer while issuing the payment itself and directly paid to the government. In other words, the purchasing organization will create a payment for only $700 for Computers Inc. Remaining amount of $300 is directly paid to the government.
PeopleSoft AP withholding feature can be used to address withholding requirements of various countries. Although it is not possible to discuss the entire process and related configurations, we'll take a quick glance at some of the important configurations.
Important withholding configurations are withholding rules...
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