Overview
To use withholding tax (WHT), you must set up the following to ensure that the correct WHT calculations are made for each transaction.
1. Set up the organization to be WHT active - System Configuration
This is setup by your Rootstock system administrator via the System Configuration program.
Navigation
RS Support Functions > System Configuration (must be performed by Rootstock)
- Select the System Configuration program.
- Select the SYCONFIG line in the list view displayed.
- Click Edit and check the Withholding Tax Enabled checkbox.
- Click Save.
2. Create the appropriate WHT Liability General Ledger Account - See also GL Accounts (Chart of Accounts)
Navigation
Financial System Admin > GL Accounts (Chart of Accounts)
- Select the GL Accounts (Chart of Accounts) program.
- Click New GL Account in the list view displayed.
- Enter the relevant account information:
Account Number
Description: for example "WHT Liability"
GL Account Type: select "Liability"
Normal balance: select "Credit"
Type of Control Account: select "Not a Control Account"
AP Account Type: select "Tax"
AR Account Type: select "Tax"
GL Type: can leave blank - to be used in the creation of Rootstock Financial Analytics reports
VAT Account: select "Not a VAT Account"
- Click Save.
3. Enter your Company's WHT Tax Identification number in your Financial Company record
Navigation
Financial System Setup > Financial Company Master
- Select the Financial Company Master program.
- Select the appropriate financial company in the list view displayed.
- Click Edit and enter the WHT Tax Identification number in the WHT Identification number field.
- Click Save.
4. Setup WHT Classes
See Defining Withholding Tax (WHT) Classes for detailed setup instructions.
NOTE A WHT Class must be set up prior to updating the below-mentioned records.
5. Update the Vendor Company record
Navigation
Financial System Admin > Vendor Company
- Select the Vendor Company program.
- Select the appropriate vendor company in the list view displayed.
- Click Edit and:
- select the appropriate WHT class available in the Withholding Tax Class picklist.
- select the appropriate WHT Vendor Form in the WHT Vendor Form picklist.
- If the vendor is an individual, then check the Vendor is an Individual field. By selecting this field the Vendor Tax Identification Number will be printed in the "Personal Identification number" field on the WHT Vendor Certificate.
- Click Save.
6. Update the AP Control record
Navigation
Financial System Admin > AP Control
- Select the AP Control program.
- Select the appropriate company in the list view displayed.
- Click Edit and select the appropriate WHT Certificate Template in the WHT Certificate Template picklist.
- Click Edit and select the appropriate WHT Return Template in the WHT Return Template picklist.
- Click Save.
7. Update the PO Commodity Code for WHT enabled PO commodities
Navigation
Purchasing > PO Commodity Code
- Select the PO Commodity Code program.
- Select the appropriate PO Commodity Code "Name" in the list view displayed.
- Click Edit and check the Subject to Withholding Tax checkbox.
- Click Save.
8. Update the PO Item Master for WHT enabled PO Items
Navigation
Purchasing > PO Item Master
- Select the PO Item Master program.
- Select the appropriate PO Item "Name" in the list view displayed.
- Click Edit and check the Subject to Withholding Tax checkbox.
- Click Save.
9. Update the Customer Company record
Navigation
Sales Order Setup > Customer Company
- Select the Customer Company record on which the Withholding Tax needs to be added.
- Click Edit and select the appropriate Withholding Tax class available in the Withholding Tax Class picklist.
- Click Save on the Customer company record.
SEE ALSO
