Understanding Withholding Concepts for Mexico
Withholding concepts are internally used codes for different types of VAT or income withholding. You use the Work with Withholding Concepts program (P76M002) to associate the codes that you use internally with the legally required codes for withholding that you set up in the Work with Legal Concepts program (P76M001). The legally required codes are also known as legal concepts. You can associate multiple withholding codes to a legal concept.
You can manually set up a withholding concept and associate it with a legal concept, or you can import the codes and associations from a MicroSoft Excel© spreadsheet.
The system saves the withholding concepts and their associations to legal concepts in the Withholding Concepts table (F76M002). You cannot delete a withholding concept record if you have set up withholding percentages for the concept in the Work With Withholding Percentages program.
After you set up withholding concepts, you use the Work With Withholding Percentages program (P76M003) to associate the withholding percentages and effective dates to the withholding concept. You also associate the withholding concepts, and thus the percentages, to the address book record of the suppler. When you process vouchers, the system uses the withholding concepts that you associate with the supplier address book record to retrieve the withholding percentage to apply to the voucher.