Concept: Tax-Only Supplier Invoices
Tax-only
supplier invoices enable you to track and pay taxes to suppliers or tax authorities
configured as suppliers. Workday processes tax-only supplier invoice lines as tax-only
lines and excludes accounting for spend in the extended amounts.
You can create tax-only supplier invoices when:
- The original supplier invoice you received omitted tax charges.
- A supplier sends a supplementary invoice with the tax-only (VAT) amount.
- You import goods or services and need to pay the tax-only (VAT) amount directly to a tax authority.
When you create a tax-only supplier invoice:
- You can link the invoice to the original supplier invoices.
- You can create a negative invoice for tax adjustments and reporting.
- Workday ignores the extended amount from the lines in the total invoice amount.
- The invoice uses the tax declaration and reporting framework.
When you create a tax-only supplier invoice, you can’t:
- Check invoice lines as prepaid.
- Enter header-level charges such as freight or other charges.
- Convert the invoice into an intercompany supplier invoice.
- Link the invoice to other documents such as purchase orders, receipts, or supplier contracts.
- Include extended amounts in tax forms 1099 MISC and 1042-S.