Oracle company confidential, 2006. Oracle company confidential, 2006 International Withholding & Prepayments Ramakrishnan Balaji Payables Product Strategy

Oracle company confidential, 2006

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International Withholding & PrepaymentsRamakrishnan BalajiPayables Product Strategy


The following is intended to outline our general product direction. It is intended for information

purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any

material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any

features or functionality described for Oracle’s products remains at the sole discretion of Oracle.


Agenda

• International Withholding

• Prepayment in Payables

• Q&A

“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”


International WithholdingProcess Flow


International WithholdingProcess Flow


International WithholdingSetup

• Rules• Classes• Types• Jurisdictions• Entities

• Define withholding remit vendor or vendors• Assign combination of withholding types, jurisdictions,

classes and rules that apply


International WithholdingRules - Types


International WithholdingJurisdictions


International Withholding






International Withholding Withholding Reports




Withholding Process Flow

• Enter withholding vendors• Enter withholding vouchers• Pay the vouchers

• Depending on the withholding setup, system may generate separate withholding payment to the tax authority when the voucher is paid or just calculate the withholding for reporting to the tax authority

• Post the withholding• View withholding balances online• Generate withholding reports


Complex Withholding scenarios

• Exonerate vendors from withholding• Use tiered-based withholding• Use period-based withholding• Calculating withholding on prepayments


International WithholdingTier based withholding


International Withholding Period based withholding

• Set up a withholding rule with a line for each percentage withholding and basis amount range

• Define a calendar with monthly periods• Define withholding categories on the withholding

entity page that join the withholding rule with the monthly calendar




Prepayments in Payables

• Allows a payment to be made to a vendor without an invoice

• Creates accounting entries for the prepayment• Applies VAT and withholdings to the prepayment• Facilitates the application of the final voucher to the

prepayment


Prepayment Process Flow

• Enter and pay a prepaid voucher immediately• Enter the vendor’s invoice as a regular voucher• Apply or link the regular voucher and prepaid voucher

prior to payment of the regular voucher• Prepayment application can be performed either in a

batch process (part of voucher posting) or manually


PrepaymentsAttributes

• Has all the attributes like a regular voucher including document sequencing, VAT and withholding

• Contains only 1 voucher line and 1 distribution• Linking regular and prepaid voucher using

prepayment reference

• Exceptions Include• Discounts• Split Payments


Prepayments


Prepayments


Prepayments


Prepayments


Prepayments


Prepayments


Prepayments

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Documents

Oracle company confidential, 2006. Oracle company confidential, 2006 International Withholding & Prepayments Ramakrishnan Balaji Payables Product Strategy