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Administrator Guide
Last Updated: 2024-09-20
Steps: Set Up Third-Party Tax Service Integrations

Steps: Set Up Third-Party Tax Service Integrations

  • Ensure that your third-party tax service provider deploys the third-party tax integration to your Workday tenant.
  • Add the third-party tax service integration as a step on 1 of these business processes:
    • Customer Invoice
    • Supplier Invoice
  • Set up a tax authority.
  • Security:
    Set Up: Tax
     domain in the Common Financial Management functional area.
You can use a third-party tax service integration to calculate, import, and store tax details on customer or supplier invoices.
  1. Access the
    Third-Party Tax Options
     tab on the
    Edit Company Tax Details
     task.
  2. When you use an integration with the reporting option, add a row to the
    Third-Party Tax Options
     grid.
  3. As you complete the task, consider:
    Option Description
    Operational Transaction Source
    Select the type of documents for which you want to use a third-party tax service.
    Tax Service Name
    The tax service name displays on customer or supplier invoices to let you know which third-party tax service the document uses.
    Enabled
    Select to enable the third-party tax service provider at the company level.
    Transaction Tax
    You can't clear this check box. All third-party tax service providers that you configure are enabled for transaction tax.
    Withholding Tax
    Select to enable the third-party tax service provider for withholding tax.
  4. When you use a nonreporting integration for customer invoices, complete the
    Customer Invoice Non-Reporting Option
     section.
  5. Set up a tax category for your third-party transaction tax rates.
  6. Set up empty third-party transaction tax rates for your third-party tax codes.
    The number of tax rates that you set up depends on your tax jurisdiction and country.
  7. Set up empty third-party transaction tax codes that Workday uses to store the tax details from the integration.
  8. (Optional) When you enable the integration for withholding tax, set up:
    • A withholding tax category.
    • Empty withholding tax rates.
    • Empty withholding tax codes.
When you create a customer or supplier invoice, leave the tax code and tax applicability fields empty. When you submit the customer or supplier invoice, Workday starts your third-party tax integration, which imports the tax details onto your invoice. You can view the tax amounts on the
Tax
 tab of the invoice and drill down to the line level.
After the third-party tax service provider calculates and imports tax details into Workday, you can view tax details in these reports:
  • The
    Transaction Tax Detail for Tax on Invoice Transactions
     report lists all invoices and their tax details.
  • The
    Tax Declaration
     report lists all tax declarations.