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Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Taxes for Purchase Transactions

Steps: Set Up Taxes for Purchase Transactions

Set up defaults for tax code and tax applicability so that these values default for suppliers and purchase transactions. These transactions include purchase orders, supplier invoices and adjustments, and ad hoc payments.
  1. Access the
    Edit Company Accounting Details
     task.
    Select the default procurement tax option at the company level to indicate how you want to record tax for purchase transactions.
    Security: Set up the
    Set Up: Company Accounting
     domain in the Procurement functional area.
  2. For each spend category, specify a default tax applicability and whether to allocate freight and other charges back to the lines.
  3. Set up a default tax applicability for purchase items.
    • Specify a default tax code and a default withholding tax code for a supplier. Workday automatically adds the tax codes to the supplier invoice header.
    • Specify business and tax identification numbers by country.
    • When managing multiple IDs for a supplier, specify the transaction tax ID used to record transaction tax for a given country and a single tax ID.
    • Specify a country and the related transaction and withholding tax status.
Configure transaction tax rules to populate tax code and tax applicability to taxable documents in Workday.