Setting Up Period-Based Withholding

To set up period-based withholding calculations, you set up a calendar that determines a period for your withholding rule by using the Calendar Builder page. You join that calendar to the withholding rule (which you set up using the Withhold Rule page) by using the Withholding Entity page.

For example, assume you withhold at 10% if the total accumulated monthly basis amount is less than 10,000 EUR, and you withhold at 12% if the total monthly basis amount is equal to or over 10,000 EUR:

1. Set up a withholding rule with a line for each percentage withholding and basis amount range:

   From Basis Amount	To Basis Amount	Percent Withheld	Additional Amount
   0	9,999.99	10%	0
   10,000	99999999999.99	12%	1000

2. Define a calendar with monthly periods.

3. Define withholding categories on the Withholding Entity page that join the withholding rule to the monthly calendar.

Now when you pay less than 10,000 EUR in a month to a supplier, you withhold at 10% and when you pay more, you withhold at 12%.

Note:

You can also set up your withholding categories on the Withholding Entity page to set a minimum basis or withholding amount below which no withholding occurs; if the withholding category is associated with a calendar, this minimum amount will be applied by calendar period (that is, by month for a monthly calendar).