Question { Oracle, 11201 }

What is WHT in Financial Module and What would be tbe acc
entry for the same?

Answer

WHT is withholding tax in oracle terms.
WHT is used to deduct and withhold a part of the amount
from the supplier's invoice on behalf of particular tax
authority for the purpose of remitting to them (tax
authority) later.

Question { DELL, 14208 }

At what level FA is implemented?

Answer

Fixed Assets will be implemented at Ledger level (R12)

It is NOT implemented at instance level or LE level

Question { 41243 }

What is the basic difference between ship to and bill to,
can I hv one ship to but nos of bill to or vice versa or in
what way these r related ?

Answer

'Ship to'location is the location where you ship the goods.
'Bill to' location is the location where you send the
invoice for the goods that has been shipped.

YES! You can have one 'ship to' and many 'bill to'.

Example scenario: The company will have one inventory
location to store and need to sent the bill/invoice to
different offices(bill-to).

Also 'bill-to' and 'ship-to' locations can be same.

Question { Meru Cabs, 12640 }

what is withholding tax

Answer

The amount which is deducted from the supplier invoice and withheld with the company for the purpose of paying that amount to the tax authority on behalf of the supplier is called withholding tax.

SETUP

1. Create a Special Calendar for withholding tax

2. Create a supplier of Type Tax Authority

3. Create Tax Code

Give the Tax Code name and Select the type as withholding Tax.
Give the GL Account for withholding tax.
Provide the withholding tax details:
Select the Tax Authority, site and the withholding special calendar
Rate Structure like
flat rate /amount ranges / period limit
Select the Tax type : Standard / Penalty
And give the rate.

4. Create a withholding tax group

Now allow the withholding tax for the suppliers to whom you want to withhold the amount for tax. This is achieved by enabling the allow withholding while supplier creation step.

So, whenever you create an invoice the withholding tax will be applicable for that supplier.