Withholding Taxes at Payment Time

When withholding taxes are calculated at payment time, you do not need to manually adjust the invoice. In such cases, the application creates automatic payment time withholding adjustments during the bank return which deduct the amount due remaining from the payment schedules.

When you receive the bank return file with the payment amount, you can review and adjust the calculated payment time withholding values. Payment time withholding taxes are created when the collection document is generated.

Here is an example:

Invoice amount $ 1,000.00

Withholding tax at 10% =$ -100.00

Invoice or payment time withholding taxes reduce the collection document payable amount: 1000 -100 = $ 900.

Note: The bank return process generates payment time withholding adjustments (example, -100) which deducts the payment time withholding amount from the payment schedule (1000 - 100 = 900).