-
Getting started with Aico
- Logging into Aico for the First Time
- Creating your first journal
- Creating your first request
- Creating your first payment
- Creating your first Intercompany Invoice
- Working with Closing Tasks
-
Working with Journals
- An overview of Aico journals
- How to create a manual journal
- Create a journal by copying existing journals
- Import new journals from Excel
- How to import multiple journals from one Excel spreadsheet
- What are recurring journal entries?
- How to create Recurring Duplicate Journal entries
- How to create Recurring Allocation journal entries
- Create recurring journals with automatic reversals
- Reversing documents
- Import data to existing journals
- Working with Reconciliations
- Universal Settings
- Dashboards
- Closing Tasks
-
System Manager
-
Users and User Groups
- Overview of Users and User Groups
- Add user accounts
- Edit user account data
- Manage user groups
- Manage user roles
- Copying roles at the company level
- Copy user roles from individual users
- Create a user report
- Manage administrative user rights
- Super user mode
- Additional super user global admin rights
- User and User group export and import
- Value sets
- Currency Amount Groups
- Mail notifications
- Tax codes
- Maintenance
- Periods
- Companies
- Archiving
- Managing PDFs
-
Users and User Groups
-
Automation Manager
- Introducing Automation Manager
- Core Set Up
-
Task Templates
- Introducing task templates
- Creating task template details
- The Aico Document
- Aico document headers
- Preparer and Approver workflow settings
- Overriding parameters at a company level
- Master data export and import
- Set a custom schedule
- Dependent tasks in Aico
- How to use Smart tags in Aico
- How to add an attachment to a task template
- How to create a preparer start time
- Cross company dependent tasks
- Related link types
- Task Generation
- Companies
- Administrative tasks
-
Aico Announcements
-
Announcements
- NEW: Journal Entry Automation Deep Dive
- Aico Skills Lab: Journal Entry Configurations Tricks & Tips (Rescheduled)
- NEW: Aico Skills Lab Tips & tricks for Aico Journal Entries configuration
- NEW: Account Reconciliation Skills Lab Exclusively for Super Users!
- Public holiday dates 2024: Aico Support Unavailable.
- NEW: Software Release Presentation: Enhancing User Experience 24.1
- Public holiday dates 2023: Aico Support Unavailable.
- Release notes
- Maintenance Schedule
- Support Alerts
-
Announcements
- Aico Reviews
How to set up withholding tax in Aico
Modified on Fri, 24 May at 2:33 PM
In 24.1, Aico introduced support for withholding tax.
This article shows how withholding tax is set up in Aico:
Withholding tax in the Aico document
Setting up the Aico tax calculation for Withholding tax
Withholding tax calculations
Withholding tax calculation:
Withholding tax (WHT) is calculated differently from normal gross tax and applied to the accounts receivable (AR) or accounts payable (AP) lines rather than normal taxes which are applied to the GL lines. It is calculated as a percentage which is deducted from the gross amount in full.
For example, 10% withholding tax on EUR 1000.00 = EUR 100.00
The requirement here is then that the AR or AP line is reduced by that 10% and a new WHT line is added to the document containing that 10%.
Even when working with SAP, withholding tax is calculated using the Aico generic tax calculation rather than the SAP tax calculation and your Aico Delivery Team will have configured both when using WHT with normal taxes in SAP.
Withholding tax in the Aico document
The withholding tax calculation relies on a minimum of three fields being set for the withholding tax to be posted :
- The WHT Code (1)
- WHT percentage (2)
- The GL account number (3)
In the example below, the user has entered three GL lines which sum to EUR 6,000.00. The GL lines have a regular gross tax code of A1, which applies 15% as VAT. The AR line must also therefore be EUR 6,000.00 to balance the posting. However, the AR line has a 10% withholding tax applied.
The gross tax is calculated using the SAP tax calculation, as it relies on tax code A1 being set up in SAP. However, the WHT line is calculated using the Aico tax calculation.
Setting up the Aico tax calculation for Withholding tax
Start by setting up withholding tax code(s) in the tax code table. This works the same way as normal taxes, although WHT offers a bit more flexibility regarding where you set the percentage and GL account as these are often determined manually by the user when they are creating the posting.
(1) The tax code is mandatory. Depending on the requirement, there may be only one generic tax code, such as a WHT, where the user is going to enter the percentage and GL account in the document each time. Or there may be many tax codes where different percentages and GL accounts are defined against each WHT Code.
(2) Give the WHT code a name. Again this can just be Withholding tax where the tax code is generic. Or, for example, Withholding tax goods supply Brazil, Withholding tax services Mexico, where you are specifying many different withholding taxes.
(3) Set the VAT percentage. A percentage is mandatory. However, depending on how you set up the tax calculation task, this can be overridden in the document.
(4) Set the GL Account. A GL Account is not mandatory. Depending on how you set up the tax calculation task, this can be overridden in the document.
(5) Select the Withholding Tax type. This determines how the calculation is performed.
Note: You can also set a pre-defined cost center for the WHT line.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article