Vendor Tax Withholding

In addition to assigning 1099 codes to a vendor's transaction, you may also withhold a specified percentage of a transaction from payment based on the withholding code defined for the vendor on the Vendor Master File.  Withholding may be performed at invoice or payment time based on the value of the Withholding Point flag on Reference File category 201, Company/Location defaults.

Vendor withholding processing is not dependent on the 1099 code assigned to a vendor.  You may withhold payment from a vendor regardless of whether you perform 1099 processing for the vendor or for the company/location originating the transaction.

Please see Vendor Tax Withholding in the Key Concepts section of this manual for more information on vendor withholding.