EAP: Withholding on Regular Voucher is Calculated on Gross Amount With Apply Net Option During Prepayment Application

(Doc ID 2013652.1)

Last updated on MARCH 18, 2016

Applies to:

PeopleSoft Enterprise FIN Payables - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.

Symptoms

Withholding is calculated on the gross amount of the Regular Voucher during Prepayment Application when the Withholding Basis option is selected as 'Apply Net'.

Setup
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Select 'Apply Net' Option on Withholding Options page of Withholding Entity.

Steps
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1. Create a Prepaid Voucher for a Vendor who is enabled for Withholding.
2. Post the Voucher.
3. Make the Payment for Regular and TDS Vendor.
4. Post the Payments.
5. Create a Regular Voucher for the same Vendor who is also enabled for India Sales Tax.
6. Apply Regular Voucher to Prepaid Voucher manually using Prepayment Application.
7. Post the Voucher.
8. Withholding is calculated on gross amount including the tax amount.

Expected Behavior
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Withholding is expected to be calculated only on the Net Amount as per the setup.

 

Cause

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