How to Define a new tax, same as WHT - 11i AP

Hi,
We use 11.5.8 Oracle Payables, We need to define a new tax (royalty tax) exactly similar to Withholding Tax.
In the invoice distribution the tax line should be negative figure which will deduct the payment amount just like in WHT.
Please let us know what type of Tax we should define to solve this and how to apply it in Invoices.
Thanks!

Hi,
Please let us know what type of Tax we should define to solve this
You description of Scenario is indicating that you should withhold a part of Invoice amount i.e the Amount is inclusive of Invoice Amount.
Hence I think WHT is suitable for you.
and how to apply it in Invoices.
Define Withholding Tax options in Payable Options window.
Define a Withholding Tax Code and Group.
Enable WHT at Supplier Site and assign particular Tax group to Supplier Header or Site as per requirement.
Define Special Calender Withholding Tax.
When supplier is selected at Invoice level, Withholding Tax group shall be automatically populated at invoice level, which will take care of Withholding at the time of Invoice Validation or Payment as per Options set.
Regards,
Sridhar

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