Use this information to enter the required information for a vendor payment that is subject to withholding tax. For example, in Italy, the buyer must withhold tax from payments for vendor invoices and remit the tax to the tax authority. In Australia, withholding tax must be withheld if a vendor does not provide an Australian Business Number. For more information about vendor payments, see Pay a vendor invoice, Pay vendor invoices by using a payment proposal, and Select invoices to pay on behalf of multiple companies.

Note
When you post a payment or payment reversal for an invoice in another company (intercompany settlement), the withholding tax transaction information is based on the vendor of the invoice, and is posted in the invoice company.

1. Click Accounts payable> Journals> Payments> Journals .

2. Create a journal, and click Linesto open the Journal voucherform for payment journal lines.

3. In the Accountfield, enter a vendor account that is set up for withholding tax. For more information, see (Global, AUS, ITA) Set up withholding tax for a vendor.

4. Enter transaction text. When the transaction is posted, the same text is used for the transaction text on withholding tax transactions. You can inquire on the transaction text to find the withholding tax transactions that are associated with a particular invoice.

5. Click Functions> Settlement.

6. In the Open transaction editing form, select the Markcheck box on the line for each vendor invoice to pay.

7. You can view or change withholding tax information for each invoice on the Withholding taxtab. For example, you can change information in the Amount exempted from withhold in invoice currencyfield.