Concept: Third-Party Tax Service Integrations
You can use a third-party tax service integration to calculate, import, and store
transaction tax details on customer or supplier invoices. Using a third-party tax service
integration eliminates the need to:
- Maintain transaction tax configurations in Workday, such as:
- Transaction tax rates.
- Transaction tax rate applications.
- Transaction tax rules.
- Select transaction tax codes and tax applicabilities on your transaction lines.
Reporting and Nonreporting Options
When you use an integration with the reporting option, you can use Workday to:
- Report on the transaction taxes that your third-party tax service calculates.
- Calculate withholding tax amounts on your customer or supplier invoices.
Workday supports the reporting option for:
- Customer invoices.
- Supplier invoices.
Workday supports the nonreporting option for customer invoices only. 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.
Withholding Tax Calculations
When you use an integration with the reporting option, 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.