1. Localizations for Mexico Implementation Guide
  2. Understanding Company Information for Supplier Withholding in Mexico

Understanding Company Information for Supplier Withholding in Mexico

You use the Generic Constants program (P76M005) to associate document types and AAIs to the withholding types that you use for each company. The system assigns the document type to the withholding lines it generates when it calculates withholding amounts, and uses the base AAI that you specify along with the withholding concept assigned to the pay item to write the amount to the F0411 table. The system determines the GL bank account information of the withholding lines from the GL account of the AAI. The GL offset account of the withholding lines is the same as the document type. You can set up separate trade accounts for the withholding lines.

You can create associations between document types, AAIs, and withholding concepts for as many document types and withholding concepts that you need to use. You can set up one document type and AAI for VAT and one for income withholding. The system considers the following AAI rules for withholding:

  1. If you select a pay item for which no specific AAI exists for the withholding concept, the system uses the specific AAI (base AAI + withholding concept. For example, if the base AAI is $G and the withholding concept is SER, then the specific AAI is $GSER.) that you set up for company 0000.

  2. If there is no specific AAI set up for company 0000, the system uses the base AAI that you set up for the company.

  3. If you do not set up the base AAI for the company, the system uses the information that you set up for company 0000.

Important: At a minimum, you must set up the associations between one VAT withholding type and one income withholding concept for company 0000. Failure to set up company 0000 might cause the system to incorrectly calculate VAT and income withholding.

You access the Generic Constants program from the Regional Info option in the Company Names & Numbers program (P0010). The system saves the values that you enter to the Generic Constants table (F76M005).

After you enter the document type and AAI for a withholding type, the system launches the Company Additional Information program (P76M010). You specify the legal representative to print on the withholding certificate in the Company Additional Information program.