Puerto Rico Localization for JD Edwards
Accounts Payable Vendor Withholding
The Vendor Withholding module is an enhancement to J.D. Edwards Enterprise One Software that addresses Puerto Rico’s local requirements for tax withholding of vendor invoices. This module has been specifically designed to comply with the Puerto Rico Internal Revenue Code that includes a provision requiring a withholding tax on payments to suppliers for services rendered in Puerto Rico.
A supplier sends you a bill
If you procure to pay, you match the invoice to either a receiving document or a purchase order.
You select the voucher for payment and generate withholding pay items.
Checks are issued for vendor as well as tax authority.
Withholding reports and annual tax return forms are generated and sent to tax authority.
When a supplier that is subject of a withholding sends you an invoice for payment, you must withhold the applicable tax from the vendor payment and pay the withheld amount to the tax authority. Regardless of whether you use procure to pay, you must enter a voucher into the system to pay the invoice. Then, you select the voucher for payment and process the tax withholding. Finally, you process the payment to the vendor and subsequently to the tax authority for the withhelds amounts.
» Provides for the identification of vendors subject to withholding requirements.
» Automates the calculation of appropriate amount to be withheld, based on the vendor’s assigned percentage (3%, 7% or current), and generates a reduction of the vendor payable amount by the withheld amount.
» Addresses the required $1,500 or current threshold before withholding begins for each vendor subject to the withholding requirement.
» Handles invoices that contain both charges subject to withholding and charges not subject to withholding (e.g. a consulting services invoice that includes both professional fees [subject to withholding] and reimbursable expenses [not subject to withholding] ).
» Automatically generates a pay item to the tax authority to remit the withheld amounts.
» Tracks vouchered amount and withheld amount by vendor, by month and year-to-date, to support year-end government reporting requirements.
» Provides online inquiry capabilities into vouchered amounts and withheld amounts by vendor, by month and year-to-date
» Provides the capability to generate the annual return forms 480.6A 480.6B and 480.6C.
» Provides the capability to generate the text file to file electronically with Departamento de Hacienda.
The Vendor Withholding module works with other J.D. Edwards Enterprise One systems to ensure that all withholding transactions are fully integrated into Accounts Payable.
The following systems integrate with the Vendor Withholding module as described:
Address Book Supplier master information identifies vendors subject to withholding and the applicable withholding percentage as well as the corresponding tax authority.
Accounts Payable pay items are generated for the withholding amount deducting the applicable amount from the vendor and applying it to the tax authority.
» Vendor Withholding for Existing Unpaid Vouchers
» Withheld Amounts on Previously Paid Vouchers
» Vendor Withholding Calculation Report
» Payment of withheld amounts to a tax authority or to supplier
» Year-End Processing
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