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R12: AP: Can a Rate Structure with Various Withholding Rates Based on Accumulated Gross Amounts in a Period Be Used in a Withholding tax Certficate? (Doc ID 2747732.1)

Last updated on JANUARY 29, 2021

Applies to:

Oracle Payables - Version 12.1.3 and later
Information in this document applies to any platform.

Goal

When an withholding tax certificate is entered in the system, the certificate does not use the rate structure defined in the withholding tax set up.

For example...

The withholding tax code "AWT Code 1" uses a rate structure like the following:

Rate Structure: Amount Ranges
Period Basis  : Period
Amount Basis  : Gross Amount

Tax Rates
Type          From Date          To Date               From Amount   To Amount   Rate
Standard   01-JAN-2020   31-DEC-2020                 0.00         500.00       0
Standard   01-JAN-2020   31-DEC-2020            500.00                           10

In any given period the first 500.00 for a supplier will generate 0% withholding.  Afterwards all amounst are withheld at 10%.

Supplier ABC Corp has a tax certificate defined:

Tax Code        Number   Type         Priority   Rate   From Date          To Date
Tax with cert  FJB-001  Standard            1        6   01-JAN-2020   31-DEC-2020

The first invoice in a given period for this supplier is entered for 1000.00.  The amount withheld is 60.00 rather than 30.00.

Is there anyway around this functionality?

Solution

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In this Document
Goal
Solution
References


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