23 Work with Vouchers for Subcontractors
This chapter contains these topics:
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Section 23.2, "Entering Vouchers in the A/P System for Subcontractors,"
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Section 23.3, "Entering Vouchers in the Procurement System for Subcontractors."
23.1 Working with Vouchers for Subcontractors
In the United Kingdom, contractors are required to withhold certain amounts from a subcontractor's payment, depending on the type of tax regulations that apply to the subcontractor.
To determine the total amount of the payment that is eligible for withholding, the contractor must distinguish between the labor and non-labor portions of each voucher.
You can use J.D. Edwards Accounts Payable or Procurement systems to create payment vouchers for subcontractors.
Working with payment vouchers for subcontractors includes the following tasks:
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Entering vouchers in the Accounts Payable system for subcontractors
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Entering vouchers in the Procurement system for subcontractors
23.1.1 Before You Begin
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Set up supplier master records for your subcontractors. You must identify the tax withholding rate and the tax authority for each subcontractor that you include in the Supplier Master file. See Entering Suppliers in the JD Edwards World Accounts Payable Guide.
23.2 Entering Vouchers in the A/P System for Subcontractors
From Accounts Payable (G04), choose Supplier and Voucher Entry
From Supplier and Voucher Entry (G0411), choose Standard Voucher Entry
After you receive a subcontractor's application for payment, you must create a voucher before you can issue payment. The payment amount and the pay item information that you enter is typically based on the application and certification process. You can also enter information about how you will process the voucher for payment or allow this information to default from the subcontractor's supplier record. The system sets up the voucher to allow payment to the subcontractor.
To determine the total amount of the payment that is eligible for withholding, you must distinguish between the labor and non-labor portions of each voucher. When you enter a voucher in the Accounts Payable system, the system displays a window for withholding tax so that you can indicate which of the pay items for the voucher are for labor or are otherwise taxable.
When you specify that a pay item is eligible for withholding tax, the system marks the voucher with a pay status of %. Only vouchers with a pay status of % are processed by the UK Calculate Withholding program.
To enter vouchers in the A/P system for subcontractors
Figure 23-1 Standard Voucher Entry screen
Description of "Figure 23-1 Standard Voucher Entry screen"
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Complete the following fields:
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Supplier Number
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Invoice Amount
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Company
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G/L Date
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In the payment schedule, complete the following fields for each pay item:
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Pay Item
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Gross Amount
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To further define voucher information, complete any of the other optional fields.
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To add the record, press Enter.
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If two-cycle entry is activated, press Enter again.
Figure 23-2 A/R and A/P Journal Entries screen
Description of "Figure 23-2 A/R and A/P Journal Entries screen"
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On AR and AP Journal Entries, complete the following fields for each G/L distribution:
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Account Number
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Amount
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Explanation 2 (optional)
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Choose the Change action.
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On Withholding Tax, for each of the pay items that is eligible for withholding tax, complete the following field:
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Tax Flag
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23.3 Entering Vouchers in the Procurement System for Subcontractors
From Stock Based Procurement (G43A), choose Purchase Order Processing
From Purchase Order Processing (G43A11), choose Receipts Matching & Posting
From Receipts Matching and Posting (G43A15), choose an option under the Receipts Matching heading
You must enter a voucher before you can pay a subcontractor. The voucher that you enter:
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Indicates that the terms of a contract have been met
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Specifies the amount to pay the subcontractor, usually based on the application and certificate process
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Notifies the Accounts Payable system to generate a check for payment
To determine the total amount of the payment that is eligible for withholding, you must distinguish between the labor and non-labor portions of each voucher. When you enter a voucher in the Procurement system, the system automatically identifies the voucher as labor or non-labor based on the line order type that you define for labor items.
The system marks the vouchers that include labor items with a pay status of %. Only vouchers with a pay status of % are processed by the UK Calculate Withholding program.
23.3.1 What You Should Know About
| Voucher | Explanation |
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| Identifying labor and non-labor vouchers | If you do not want the system to automatically identify vouchers as labor and non-labor, you can manually mark each voucher.
To do this, access the processing options for the Accounts Payable Functional Server for the United Kingdom (XT0411ZAUK). Set the processing options to display the withholding tax window when entering vouchers in the Procurement system. |