This chapter contains the following topics:
Section 6.1, "Processing Automatic Payments with Supplier Withholding in Mexico"
Section 6.2, "Processing Manual Payments with Supplier Withholding in Mexico"
This section provides an overview of automatic payments with supplier withholding, lists prerequisites, and discusses how to set the processing option for Print Payment Order - MEX (R76M573).
After you create vouchers for payment, you can run the automatic payment process to pay the vouchers. The automatic payment process consists of creating, writing, and updating payment groups. When you run the automatic payment process for Mexican vouchers, the system uses Mexico-specific programming to determine whether value-added tax (VAT) and income withholding applies to the vouchers, and prints a report that includes the withholding information that applies to the vouchers that you process. The system also prints two copies of the withholding certificate for payments that include withholding.
When you process vouchers for payments, the system saves the withholding concepts and basic voucher information, such as the pay item and document type, to these temporary standard and Mexico-specific tables while you process the payments:
A/P Payment Processing - Header (F04571)
A/P Payment Processing - Summary (F04572)
A/P Payment Processing - Detail (F04573)
When you complete the payment process, the system writes the payment and withholding data to these standard and Mexico-specific tables:
Accounts Payment Ledger (F0411)
Accounts Payable - Matching Document (F0413)
Accounts Payable Matching Document Detail (F0414)
When you create payment groups using the Create Payment Control Groups program (R04570), the system calls the Print PCG Detail - Mex program (R76M570) to calculate the VAT and income withholding for Mexican suppliers. The system uses the VAT and income percentages that you set up for Mexican companies and suppliers, along with the voucher information that exists in the F76M411T table, to calculate the withholding amount. The system stores the withholding amount, concept, percentage, and gross or taxable flag for each pay item in the PCG Detail Withholding Amounts table (F76M573). For each payment, the system summarizes the withholding by withholding type and concept, and writes the withholding data to the A/P Header Withholding Summary table (F76M572). The system also writes withholding data to the A/P Payment Processing - Detail table (F04573). The system uses the data in the F76M572 and F76M573 tables, along with the data that is stored in the base software tables, when you use the Write and Update processes in the automatic payment process.
The Print PCG Detail - Mex program generates a report that includes the withholding calculation details for the vouchers processed. The report includes a header for each payment record that exists in the A/P Payment Control Group table (F04571). The header includes information such as the bank account, currency code, and payment amount. The detail of the report includes information such as the alternate payee, the withholding amounts and percentages, and the payment due date.
You assign the Print Payment Order - MEX program (R76M573) as the attachment program to run during the write payment group process. Enter P76M573 as the attachment in the Payment Instruments Default program (P0417). You must also set up P76M573 in the 04/PA UDC table. You can set a processing option to specify whether to print general ledger distribution information.
You might need to undo the payment group after you create it, but before you write the payment groups. This table lists the actions you might take and the related system actions:
| User Action | System Action |
|---|---|
| Undo voucher payment
Note: You cannot undo the withholding voucher; you can only undo the voucher for the service. |
The system recalculates withholding for the processed payment and updates the F04573, F76M572, and F76M573 tables. |
| Undo pay item
Note: You cannot undo a withholding pay item; you can only undo a pay item for the service. |
The system recalculates withholding for the processed payment and updates the F04573, F76M572, and F76M573 tables. |
| Split pay item
Note: You cannot split a withholding pay item; you can only split a pay item for the service. |
The system recalculates withholding for the processed payment, updates the F04573, F76M572, and F76M573 tables, and copies the Mexico-specific information to the F76M411T table. |
You use a menu option in the Work With Payment Groups program (P04571) to write payment groups, close the voucher, and make changes to the payment groups. The system runs the Print Automatic Payments - Standard Format program (R04572) for Mexican vouchers. The system generates voucher numbers for withheld amounts and updates the F04571, F04572, F04573, F76M572, and F76M573 tables.
When you write payment groups for Mexican vouchers that include withholding amounts, the system runs the Print Payment Order - MEX program (R76M573) if you entered the program as the attachment program to run during the create payment group process. The Print Payment Order - MEX program produces the payment order with the withholding details. The payment order includes information such as the payment number, payment amount, currency information if the voucher was in a foreign currency, and GL account information, if you set the processing option to print GL information. The system prints the report in Spanish.
If you undo payment groups after writing them but before updating them, the system deletes the records in the F04571, F04572, F04573, F76M572, and F76M573 tables. The status of processed vouchers is changed back to approved. If you reset a payment group after you undo it, the system reverts back to the records that existed for the voucher group after the Write process.
When you update payment groups, the system updates the Accounts Payable Ledger (F0411), F0413, and F0414 tables with the data from the F04571, F04572, and F04573 tables, and copies the payment data from the F76M572 and F76M573 tables to the Accounts Payable Header Additional Details table (F76M413) and A/P Matching Detail Withholding Information - MEX (F76M414) tables.
The Update function also causes the system to run the Print Withholding Certificate - MEX program (R76M422) to generate the withholding certificate for the supplier.
See Generating the Supplier Withholding Certificate in Mexico.
If the vouchers in a payment group are in a foreign currency, the system converts the foreign currency to the domestic currency using the exchange rate that is in effect on the date that you run the Create Payment Control Groups program (R04570). The program uses the Payment Currency processing option to determine whether to pay the withholding voucher in the domestic or foreign currency.
If you enter a value of 2 or 4 in the Payment Currency processing option, the system pays the withholding voucher in the foreign currency. If you leave the processing option blank or enter 3, the system pays the voucher in the domestic currency.
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Note: (Release 9.1 Update) In the A/P Payment Processing - Detail (F04573) table, the payment voucher displays the old exchange rate, and the withholding line displays the current exchange rate. |
Before you run the automatic payment process to calculate withholding:
Verify that the Localization Country Code field in the User Profile Revisions program (P0092) is set to MX (Mexico).
Set up the system to process VAT and income withholding.
See Setting Up Your System for Supplier Withholding in Mexico.
Verify that P76M573 is the attachment program indicated in the Payment Instrument Defaults program (P0417) and in UDC 04/PA.
This section provides an overview of manual payment processing with supplier withholding and discusses how to add withholding information to manual payments in Mexico.
You can use the A/P Manual Payments program (P0413M) to enter and match a payment to a voucher, or use the Standard Voucher Entry program (P0411) to enter a manual payment without matching it to a voucher. Because the manual payment-entry process does not include calculations for withholding, you must manually calculate and enter withholding amounts for the vouchers that you pay using a manual payment process. You can add withholding information to the manual payments that you match to vouchers and those that you do not match to vouchers.
You use the Manual Payment Entry - Withholding Registration program to assign VAT and income withholding concepts to a payment, and enter payment and withholding amounts.
The system validates that the VAT and income concepts are not expired and uses the document type and AAI information that exists in the Generic Constants table (F76M005).
The system saves the withholding information to a cache until you complete the transaction. When you complete the transaction, the system saves the withholding information to the Accounts Payable Header Additional Details table (F76M413), and saves the standard voucher and payment information to the Accounts Payable - Matching Document (F0413) and Accounts Payable Ledger (F0411) tables.
If you cancel a transaction before clicking OK on the Withholding Registration form of the Manual Payment Entry - Withholding Registration program, the system does not save the information entered in the Withholding Registration form or the base software entry form.
You cannot delete a payment that has withholding lines associated with it. You can, however, void payments with withholding lines.
| Form Name | Form ID | Navigation | Usage |
|---|---|---|---|
| Work With Payments | W0413MB | Manual Payment Processing (G0412), Payment With Voucher Match | Enter the default value for the supplier number for manual payment, and locate existing manual payments to review or delete. |
| Manual Payment Entry | W0413MA | Click Add on the Work With Payments form. | Enter payment information. |
| Select Open Pay Items | W0413ME | On the Manual Payment Entry form, select Pay Items from the Form menu. | Select voucher pay items to be paid by the manual payment. |
| Supplier Ledger Inquiry | W0411G | Manual Payment Processing (G0412), Payment Without Voucher Match | Review existing vouchers to verify that a voucher has not yet been created. |
| Enter Voucher - Payment Information | W0411A | Click Add on the Supplier Ledger Inquiry form. | Enter voucher information. |
| Payment Information | W0411D | Click OK on the Enter Voucher - Payment Information form. | Enter payment number and date. |
| Manual Payment Withholding Registration | W76M413A | Click OK on the Manual Payment Entry form.
Click OK on the Payment Information form. |
Add withholding concepts and amounts. |
| G/L Distribution | W0411K | Click OK on the Manual Payment Withholding Registration form. | Enter GL distribution information for voucher. |
Access the Withholding Registration form.
Enter a value from the Withholding Concepts table (F76M002) to specify the VAT withholding concept to apply to the payment.
Enter a value from the Withholding Concepts table (F76M002) to specify the income withholding concept to apply to the payment.
Enter the withholding amount for VAT for payments made in the domestic currency. Enter the amount as a negative number.
If your payment is in a foreign currency, you enter the withholding amount in the Foreign VAT Withholding Amount field and the system converts the foreign amount to the domestic amount and populates this field.
Enter the withholding amount for income for payments made in the domestic currency. Enter the amount as a negative number.
If your payment is in a foreign currency, you enter the withholding amount in the Foreign Income Withholding Amount field and the system converts the foreign amount to the domestic amount and populates this field.
Enter the withholding amount for VAT in the foreign currency. Enter the amount as a negative number.
The system displays this field only when the voucher is in a foreign currency.
Enter the withholding amount for income in the foreign currency. Enter the amount as a negative number.
The system displays this field only when the voucher is in a foreign currency.