A large Television broadcasting and production company had the following concern. They take the services of large number of TV artists who are employed for a very short period of time. While making a payment to them the company has to deduct taxes and pay them. They want to know the best way of handling this situation using Oracle Payables. Also, as the number of artist’s runs into thousands, they want to know the best way to maintain their bank account and address details for making electronic/check payment.
Step1: Setup Withholding tax as per the law. You may/may not create withholding invoices by setting up your payables option 'Create Withholding invoice" accordingly.
Step2: Setup each artist as a supplier and associate the Withholding tax the supplier. However, if we intend to pay them electronically we have to setup supplier bank account for each of the supplier. Once the artist leaves the services of the company, one can easily end date the supplier created. The supplier ID created can be used as a unique number to refer the artist. In case the artist comes back to render his/her services again, only thing that needs to be done is remove the end date to re-activate the supplier.
Step3: Raise invoices for each artist (supplier) and pay them. The invoice automatically calculates the Withholding amount and while making the payment we pay only the balance amount.
Step4: At period end run the "Withholding Tax by Tax Authority" report and pay the tax authority the amount collected in the period.
- Krishanu Bose
- Krishanu's Oracle Applications Blog - Oracle Apps consulting services scenario in India. Also, an inside view of Oracle Apps outsource services in India. Also the blog features new developments in Oracle Apps and my learning's in this field. The views expressed are my own only and not of my employer Wipro Technologies. The views and opinions expressed by visitors to this blog are theirs and do not necessarily reflect mine.
- ▼ 2008 (14)