Understanding Vouchers with Supplier Withholding in Mexico

You can process value-added tax (VAT) and income withholding for suppliers when you process vouchers for the suppliers. You can work with supplier withholding in Mexico when you:

• Enter standard vouchers.

• Match vouchers to purchase orders.

• Copy vouchers.

• Log vouchers.

• Split vouchers.

• Use payment terms to split vouchers into installments.

• Use pay when paid voucher processing.

The system launches the Withholding Additional Information program (P76M411) from these standard software programs when you set a processing option in the Withholding Additional Information program to enable the withholding functionality:

• Standard Voucher Entry (P0411)

  You use different versions of the Standard Voucher Entry program to work with standard and logged vouchers, and when using pay when paid processing.

• Match Voucher to Open Receipt (P4314)

Note: You cannot process supplier withholding for vouchers that you process in the electronic data interchange (EDI) system or for vouchers for prepayments.

The system saves the withholding information that you enter to the F0411 A/P Tag File table (F76M411T) and uses the data when you calculate withholding in the Automatic Payment process.