How to Setup Oracle Payable Withholding Tax (AWT) in R12

Oracle Account Payable – Withholding Tax Setup & Flow - R12


1. Create Special Calendar for AWT

2. CIS Calendar Profile Option

3. Define Withholding Supplier (Tax Authority)

4. Create Withholding Code

5. Define Withholding Group

6. Configure Payable Options

7. Enable Withholding Tax applicability in the vendors

8. Perform AWT Transactions/Transaction flow

1. Create Special Calendar for WHT

Create Monthly Special Calendar

(N) Setup>Calendar>Special Calendar

2. Profile option for CIS calendar

Attach your SPL calendar in site level profile option

(N)System Admin>System Profile

3. Define withholding supplier (Tax Authority)

Create Tax Authority supplier to create withholding invoices

(N)Supplier > Entry

Select the supplier type as “Tax Authority”

4. Create withholding code

Create withholding tax code with attaching the tax authority, SPL calendar and withholding tax percentage.

(N) Setup>Tax>withholding>Code

5. Define withholding Group

Create withholding group and attach the withholding code to it.

(N) Setup>Tax>withholding>Group

6. Configure Payables Option

Setup payables option for withholding tax,

(N) Setup>Options>Payables Options

7. Enable withholding tax applicability in the vendors

Allow withholding tax in the supplier and supplier site level for withholding tax applicability

(N)Supplier > Entry

8. Perform withholding tax Transactions

Create AP invoice for withholding tax supplier to test your configuration.

Invoice deducted the withholding tax

Query the “Tax Authority” to find the withholding tax invoice

End the Process...