Exonerating Suppliers from Withholding

PeopleSoft Payables enables you to exonerate a supplier from withholding on a percentage basis. Some suppliers enjoy special privileges when it comes to withholding. This privilege is termed exoneration and enables this supplier to be withheld less than other suppliers. For instance, a supplier might have a condition that stipulates that it be withheld half of the regular amount during the first six months of the year. To support this feature, a way is provided to specify an exoneration percentage and an expiration date for this exoneration at the supplier level. This information needs to be tracked at the jurisdiction level as well, and it is stored in the VENDOR_WTHD_JUR table.

Example: Supplier Exoneration

Assume that you paid 55,000 EUR from an exonerated supplier. Assume also that the withholding amount calculated prior to any exoneration is 3600 EUR (see the example in the section Using Tiered-Based Withholding). If this supplier had an effective exoneration of 25%, you would withhold 2700 EUR instead of 3600 EUR.