Use this activity to enter or modify existing supplier income types. Income types are defined for supplier invoice lines to identify and categorize payments to suppliers for income tax reporting and/or withholding, such as Form 1099 tax reporting and withholding in the United States. The type of payment and total amount paid to the supplier determine whether payments to that supplier must be reported to the appropriate tax authority, and whether taxes must be withheld on those payments. In the United States, the threshold amount is used to determine the minimum payment per year to a certain supplier that must be reported as supplier income.
Supplier income types for the United States that are inserted at system installation are not possible to remove, since they are used to generate the 1099 reports for US tax authorities. Supplier income types are unique to each country. Within a company, it is only possible to use supplier income types with currency codes corresponding to the accounting currency..
For UK Construction Industry Scheme (CIS) related information,
please refer the attached UK Specific documentation in the related activity
diagram.
This activity requires that a company exist in IFS Financials.
As a result of this activity, supplier income types can be defined for invoice lines and thereafter used to identify different categories of payments for tax reporting and withholding.