After you apply withholding tax to an invoice, you can optionally create invoices to remit withheld tax to the tax authority.

Prerequisite

• Apply withholding tax to invoices. See: Withholding Taxes.

• If you are paying the tax authority with an electronic payment, assign a primary bank account to the tax authority's supplier site record. Payables will use this bank account for payment. See: Bank Information.

To create withholding tax invoices:

Payables can automatically create withholding tax invoices, or you can perform this task manually. If you choose to automatically create withholding tax invoices, you must choose whether to do this during Invoice Validation or during payment processing. Indicate this choice in the Withholding Tax region of the Payables Options window. See: Withholding Tax Payables Options.

If you choose to create withholding tax invoices manually, create an invoice for each Withholding Tax type invoice distribution on an invoice. Create the invoice for the tax authority supplier and site assigned to the Withholding Tax type tax code and for the amount of the Withholding Tax type invoice distribution. See: Entering Basic Invoices.

If you specify that you want to create withholding tax invoices during Invoice Validation, Payables creates unvalidated withholding tax invoices for tax authority suppliers assigned to tax codes. If you specify that you want to create withholding tax invoices during payment processing, Payables creates unvalidated withholding tax invoices (for those invoices where you have applied withholding tax) during the Confirm program of payment batch processing, or during processing of a Quick payment.