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R12: AP: Calculate Withholding Tax At Payment Time Not At Invoice Validation With Prepayments (Doc ID 1083242.1)

Last updated on JULY 08, 2020

Applies to:

Oracle Payables - Version 12.0.1 to 12.1.2 [Release 12.0 to 12.1]
Information in this document applies to any platform.


Want to calculate Automatic Withholding Tax (AWT) at payment time rather at invoice validation time.

Sample business case as follow :

a) Payable Option withholding tax setup: Calculate AWT at Payment time.

b) Issue prepayment invoice for 100 USD and pay in full.

c) Issue standard invoice for 100 USD. When the prepayment 10 USD is applied, it should calculate that invoice net = 90 USD.

d) Remaining amount is 10 USD, which should be delivered back to AP cashier to be paid later to tax authority.

The problem now is withholding is not calculated at the invoice level, which allow to apply prepayment for 100 USD and tax is not calculated at all.


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