Concept: Third-Party Tax Service Integrations
You can use third-party tax service integrations to calculate, import, and store tax details on customer or supplier invoices. Using a third-party tax service integration reduces the need to:
- Maintain tax configurations in Workday, such as:
- Tax rates.
- Tax rules.
- Select tax codes and applicabilities on your transaction lines.
Reporting and Nonreporting Options
When configuring third-party tax, follow instructions from your third-party tax provider to complete either of these sections on the
Edit Company Tax Details
task:
Section | Integration Option | Considerations |
|---|---|---|
Third-Party Tax Options
| Reporting | Workday supports the reporting option for:
With the reporting option, you can use Workday to report on the transaction or withholding taxes that your third-party tax service calculates. You can enable third-party tax for:
When using third-party integrations for withholding tax, Workday only supports these realization point types:
When you enable third-party tax for transaction tax only, you can use Workday to calculate withholding tax amounts on your customer or supplier invoices. |
Customer Invoice Non-Reporting Option
| Nonreporting | Workday supports the nonreporting option only for transaction tax on customer invoices.
We recommend that you use the reporting option, as you can't use Workday's reporting framework and withholding tax calculations with the nonreporting option. |
On customer invoices, you can configure either integrations with the reporting option or integrations with the nonreporting option, but not both.
Withholding Tax Calculations
When you use an integration with the reporting option for transaction tax only, you can still use Workday to calculate withholding tax amounts:
- You enter the withholding tax code on your transaction lines.
- Workday populates the withholding tax amount on your document at the same time that the integration imports the tax details from your third-party tax service into Workday.