Extended Withholding tax changeover

Hi, I  want to activate extended withholding tax for a company that has not used classic withholding tax. The changeover process only deals with moving from classic to extended. How do i move from nothing to extended ??
transaction WTMG - Company code selection - the system delets company codes for which classic withholding tax has not been used......... so how do I convert the existing data

Hi Dipak,
All invoices posted prior to activating EWT do not get paid - details when displaying the line item within F110 say at the bottom in the Note section "Item cannot be paid due to inconsistent withholding tax information". I tried entering an exemption number on the master record with a date range up to the date of activation, but that makes no difference to the error in F110. If I go into the open items and update them for withholding tax, the items then get paid via F110.
This leads me to believe that all old open items need to be converted.
Regards,
James

Similar Messages

  • Activating Extended Withholding Tax - New Company Code

    Hello Gurus, I have a question regarding Extended Withholding Tax that I have not previously seen addressed.
    My client is live on ECC 6.0 EHP 5 and would like to activate Extended Wittholding Tax for its Colombian company code which is not yet live.
    All existing company codes on the same client are using Classic Withholding Tax, where withholding is needed.  This is working well in many countries around the world, but will not satisfy the Colombia legal requirements.
    Since Extended Withholding Tax is activated by company code, do we need to perform the Withholding Tax Changeover / Data Conversion steps for all existing entities live on SAP with Classic Wittholding?
    Keep in mind that we do not plan to activate Extended Withholding Taxes in any other company code that already has productive data unless we absolutely must.
    However, previous questions asked of this nature (and the SAP documentation) had ambiguous replies about whether other Existing company codes are impacted (and must be converted) as a result of activating EWT for a brand new company code with no existing master data or transactional data to be converted.
    Thanks for your help.
    Guy

    Hi Guy,
    I believe that you can use extended Withholding tax for new company code without impacting the existing company code with classic WHT configured as my belief is extended WHT is activated at company code level.
    Probably you can try to configure colombia in your development system and do some testing for Colombia and negative testing for few company codes with classic WHT.
    Thanks and Regards,
    Gaurav

  • Payment order are not defined for extended withholding  tax

    Hi Gurus,
    Would you please help me with the message below. It appears on F110 when I try to pay a vendor open item with extended withholding tax:
    Message FZ626 -Payment orders are not defined for extended withholding tax
    In my company payment orders are created in F110 for accounts payable, as we use another ERP system (Baan) to perform the local accounts payments, and now I've just activated Extended withholding tax functionality With accumulation (necessary in Brazil) but I get this error.
    Is it not possible to user payment order with extended withholding tax + accumulation? I find it hard to believe...
    I've tried to unflag the payment order only for the payment method I'm using in FBZP t.code, but then no payment order were created but instead a payment document were posted with the withholding tax accumulation, but this is not the way we are working, and nothing is sent to Baan
    any help is welcome

    The payment method "Y" the option "payment order only" was marked?
    For a withholding tax type with accumulation in a company code with extended withholding tax payment
    methods that create only payment orders can´t be used. Payment orders can only be created only if there are
    no tax types with accumulation involved in the paid items of the payment run.
    The functionality extended withholding tax works fine for Brazil
    however, you can´t use the payment order with this functionality.
    Please, review your customizing for payment method 'Y" in transaction
    FBZP.
    Best regards,
    Leonardo Vedovelli
    FI Support Engineer
    SAP Active Global Support

  • Migration from Withholding Tax ( Classic ) to Extended Withholding Tax

    Dear All,
    I am doing the Migration from Withholding Tax ( Classic ) to Extended Withholding Tax, I am getting the following error.
    I made all the customization and done the necessary process flow steps.
    Now I am doing the last transaction i.e. Migration Programme ( J1INMIG )
    I am getting the following error. i.e.
    Health Check not carried out or health check has reported errors....
    Message no. 8I775
    Diagnosis
    Before migration of data is carried out, it is advisable to carry out the integrity of customizing in both SAP ECC and CIN.
    It appears that either the health check is not carried out, in which case it can be run using transaction j1inhc, or the  health check has reported errors.
    Procedure
    Run health check program if not already run.
    Resolve the errors reported in customizing and re run the health check.
    In case you do not wish to use health check tool, manually update the field 'STATUS'as 'X'  for the company code.
    So I checked in Health Check ( J1INHC ). Here All are showing the Green Status.
    EXCEPT THE FOLLOWING IS IN YELLOW STATUS .
    34            Invoice with Payment Type tax code  created in classic  cannot be executed after switching to EWT.
                   These documents have to be processed before switching to EWT.
                   SERIAL NO.     COMPANY   DOCUMENT NO.   POSTING DATE   FISCAL YEAR
                   1              ITS       1900000022     09.12.2009     2009
                   2              ITS       1900000027     09.12.2009     2009
                   3              ITS       1900000023     09.12.2009     2009
                   4              ITS       1900000021     09.12.2009     2009
                   5              ITS       1900000020     09.12.2009     2009
                   6              ITS       1900000019     09.12.2009     2009
                   7              ITS       1900000018     09.12.2009     2009
                   8              ITS       1900000016     09.12.2009     2009
                   9              ITS       1900000024     09.12.2009     2009
                   10             ITS       1900000025     09.12.2009     2009
                   11             ITS       1900000015     08.12.2009     2009
    I noticed that because the above documents are having the openitems and down payments. And If I clear the these documents it is becoming Green Status.
    It means now my Health Check is correct, Because all are showing the Green status.
    Now If I run the Migration Programme ( ( J1INMIG )
    IT IS NOT EXECUTING. IT IS GIVING THE MESSAGE THAT NO DOCUMENTS FOUND.
    Kindly advise I don't understand the above Migration programme execution and the error details.
    Regards
    Kumar

    Hi All,
    Nobody has not answered my issue.
    Otherwise anybody can explain in detail about " MIGRATION PROGRAMME " ( J1INMIG ).
    I want details about this last T.Code only i.e. J1INMIG and remaining all the necessary steps I completed.
    An early reply will be highly appriciated.
    Regards,
    K. S. Sai Kumar

  • Extended Withholding Tax error

    I have done EWT configuration. But while posting the entry, TDS is not deducted and no posting to TDS accounts are made.
    I have assigned GL accounts & done the settings in sequence given in SAP nodes
    What wrong setting i would have done ?

    Hi,
    1. Please check withholding tax type is assigned to the company code, IMG: Withholding tax>Extended withholding Tax>Company Code>Assigned Withholding Tax Types to Company Code.
    Note: also check the here the proper dates u201Cw/tax obligated frmu201D and u201COblig.to w/tax untilu201D e.g. 01.01.1900 and 31.12.9999.
    2. Go to OBWW also check the GL is assigned or not.
    3. Also check the  field status of recon. account & alternative recon account assigned for special GL for down payment, fields e.g withholding tax code and withholding tax amounts etc. should not be suppressed.
    Thanks
    Javed

  • Extended Withholding Tax  (India)

    While testing TDS calculation at the time of payment posting I am facing a problem.
    TDS is not being calculated.
    System is asking Tax Code of TAXINN tax procedure such as input tax, output tax etc.
    I have done the settings of W/H type, code,recipient type, assigning type to co.code and finally assigning the tax type and tax code combinatin to the endor.
    In accounnt determination also, I have chosen a bank account in which 'relevant to cash flow' field is marked.
    So what checks are required for TDS calculation?
    Thanks & Regards
    Dhanashree

    Hi
    Go to FTXP and make the codes....see here what you are refering to is not extended withholding tax ..here you are refering to TDS. first make configuration settings for tax on sales and purchases.
    Go to Financial accounting>financial accounting and global settings>AR/AP>tax on sales and purchases.
    Check calculation procedure and then assign the same to the country.
    Assign points.
    Zia

  • Extended withholding tax - US  Error 7Q 301 updating withholding tax

    Cannot get the system to allow me to change the withholding tax information on the accounting documents.  Extended withholding tax has been configured. The fields in the line items have been opened to allow changes to the withholding tax data, both for K and S.  The venodor has been updated for the withholding tax type and code. Program RFWT0010 does not update any records.  The funny thing is it works in the sandbox but not the regular testing dev client.  I have compared config and it is the same in both places.   Any ideas?
    Thank you.

    Hi,
    Please refer to note 363650, you will see the following information;
    C) Change Rules for classical and extended withholding tax If the withholding tax base amount should be changed after a
          docment has been paid already, the following steps are required:
    For Classical Withholding Tax and only if the withholding tax amount is zero.
    Change of withholding tax base amount or withholding tax code of a cleared invoice.
    If the withholding tax base amount and/or the withholding tax code needs to be changed after an invoice has been cleared please follow steps;
    As you see from the above information the following quotation "only if the withholding tax amount is zero".  Is this the case in your scenario?
    If a withholding tax amount other than zero has been posted, you cannot change the values via transaction FB02.
    Please also review the IMG documentation for transaction OB32 via spro -> Financial accounting -> Financial accounting global settings -> Document -> Line item -> Document change rules, line item. here you will see the following information;
    Document Change Rules, Line Item
    In this activity, you determine under which circumstances fields within posted documents can be changed.
    Note
    For a number of fields, the system itself determines that they can no longer be changed after posting. This includes all fields which are central to the principles of orderly accounting, for example, the amount posted and the account.
    The system also prevents the update objects from being changed in documents which have already been posted, independent of the document change rules
    Thus as you can see from the above description if an amount has been posted to the account you cannot change the fields despite entering in the field in OB32 as changable.
    Please also be aware that the important table concerning extended withholding tax is WITH_ITEM.  This is where the data found through the button  'Withholding tax Information' in FB03 is held.
    (For example in the 'Withholding tax data button' If you click on the help of the field Withholding Code and select the button 'Technical information' you will see that the field name is WT_WITHCD) The fields concerned with same
      WITH_ITEM-WT_QSSHB
      WITH_ITEM-WT_WITHCD
    should be customized in the document change rules (transaction OB32) You will also have to ensure that the posting keys in the document are set to optional (transaction ob41)
    Regards
    Ravinagh Boni

  • Extended Withholding tax issue

    Hi Everyone,
    I am facing a problem with my extended withholding tax.. I have done all the configuration and an entry gets created in table WITH_ITEM but this entry is for $0 
    I go to MIRO Transaction to create my invoice but the base amount is always blank, after that or at same time I can manually enter the base, or the amount but system is not calculating mnually someone could help me or have any idea on this?
    Thank you and regards

    Hi
    Check your with holding tax type configuration what is the basis for calculation of base amount under the below path:
    IMG ‡ Financial Accounting ‡ Financial Accounting Global Settings‡ Withholding Tax‡ Extended Withholding Tax ‡ Calculation‡ Withholding Tax Type ‡ Define Withholding Tax Type for Invoice Posting
    Depending on this set up, system determines the base amount on which the with holding tax must be calculated. Under the control tab, you may want to remove the manual with holding tax base amount and make sure that one of the radio buttons in Calculation> Base Amount is maintained depending on how you want to calculate the with holding tax
    regards
    Sanil Bhandari

  • Extended Withholding tax in VIM

    Hi ,
    We are EHP 6 and we are implementing Open Tax for our new company code Philippines . 
    We have activated EXTENDED WITHHOLDING TAX " functionality in SAP and want to use same in Open text .
    We are using VIM 6 .
    Can you please help us on this?
    how to activate extended Withholding tax in VIM 6 for EHP6 .
    many Thanks
    Regards

    Dear Preeti,
    I had similar issue in VIM7 but then discovered that the fields in VIM are displayed as soon as the vendor is subjected to withholding tax. Withholding tax will show up in Tax tab.
    Let me know if it works.
    Best regards,
    Alessandro

  • Extended Withholding Tax in Country DE, Company Code 1000 in ECC 5 IDES

    hi all
    can we configure extended withholding tax for the company code 1000 in ECC5 IDES. even after making the whole configuration, while maintaining vendor master code an error message is coming.
    message: Entry DE  15 does not exist in T059Z - check your entry
    Message no. 00058
    15 is Tax Code
    i am getting some values in the customisation help hit like "Financial Accounting Basic Settings (New)" but it is not available in the IMG MENU. is it not availbale in IDES.
    it is very urgent and i am stuck up. pls provide some inputs
    regards,
    ashok

    Please, check in the IMG that you have correctly defined the table
    T059Z:
    Financial Accounting -> Financial Accounting Global Settings ->
        Withholding Tax -> Extended Withholding Tax -> Calculation ->
        Withholding Tax Codes -> Define withholding tax codes
    Please, also check the customizing of the vendor's Account Group
    and set the field Tax category as optional:
    Trans. OBD3 -> Select account group -> Company Code Data ->
        W/holding tax data, w/h tax 2 -> Withholding tax category
    Regards
    Siva

  • Extended withholding tax deduction from customer credit

    hi all
    configured the extended withholding tax for deducting tds from customer credit line items.
    deduction is required only after the amount accumulation 2500/- (this is also configured)
    1.is the recipient type and country is not required for the customer tds..? (it is not visible in the customer master, but is in vendor master)
    2.in the amount accumulation for 2500/- consider the following scenario.
       >>first bill amount 2450/- (no tax deduction)
       >>second bill for Rs.100/- from which i need to deduct tax for 2550/-, since Rs.100 is not enough to deduct 10% tax from tax base 2550.00 it is throwing error.
    pls help
    with best regards,
    sallu c.mathew

    Hi Ajeesh,
    As already mentionned in standardf help from sap, you use J1INCUST which is a report to record the with. tax certificates sent to you by your clients. In doing so, the system clears the wi. tax to a G/L account that records how much tax your customers have withheld on your behalf, known as the customer tax creditable account. You can offset this tax against your income tax payable at year-end.
    And you run the report immediately you receive a certificate from a customer.
    Then system creates an accounting document to transfer the withholding tax from the G/L account for the withholding tax deducted by your customers to the customer tax creditable account.
    Best regards,
    Tarek

  • Extended Withholding Tax - 1099 listings

    Hi Folks,
    We are not able to get the output data for S_ALR_87012143 (1099 Listings) when extended withholding tax is configured.
    This transaction works fine for classic withholding tax.
    We also have no problem with 1099-MISC for EWT.
    Is there any program to be run or an OSS note to be implemented inorder to get the output for 1099 listings for EWT.
    Thanks in Advance,
    Venkat

    What was the t code that you found? We're having a similar problem.

  • Extended Withholding Tax - Minimum Amount

    Dear SAP Expert,
    In our setup we have extended withholding tax incoming payment for outgoing invoices.
    The scenario is if invoice base amount is less than 300 EGP (local curreny) then withholding tax information should not capture invoice document.
    I setup minimum based amount on withholding tax type and withholding tax codes level but still when user post outgoing invoices WHT information is captured in FI document.
    Because of above issue automatic clearing (F.13) is not happening and we are getting error message like "Items with withholding tax code for customer subject to withholding tax"
    looking for expert assistance.
    B/R
    Prashant Rane

    Dear Mani,
    Thanks for assistance.
    from your example I understand if invoice amount is less than 10,000 then WHT should be applicable.
    In my example min invoice amount is 300 EGP
    where 2 % WHT is applicable
    I wanted to know in which below field I should enter 300 EGP (from your example 10,000)?
    Calculation > Withholding Tax Codes > Define Formula for calculating Withholding Tax:
    Currency u2013 EGP
    W/Tax Type u2013 I2
    W/Tax Code u2013 P2
    Valid from u2013 01.01.2009
    To base amount - 999,999,999,999
    W/Tax Rate u2013 2%
    Reduced Withholding Tax Rate for Exemption u2013 BLANK
    Reduction of Base Amount u2013 BLANK
    Decreased Reduction of Base Amount - BLANK
    Below is complete customizing I did in my setup
    Financial Accounting
    Financial Accounting Global Settings
    Withholding Tax
    Extended Withholding Tax
    Calculation > Withholding Tax Type > Define Withholding Tax Type for payment posting:
    Withhld tax type u2013 I2
    Base Amount u2013 Net Amount
    Accumulation Type u2013 No accumulation
    Control Data u2013 W/Tax base manual, manual W/tax amnt, w/tax for payments, no cert. numbering
    Base amount u2013 W/tax code level
    W/tax amount - W/tax code level
    Minimum check u2013 Min. base amnt check at doc invoice level
    Post W/Tax Amount - YES
    Calculation > Withholding Tax Codes > Define Withholding Tax Code:
    Withhld tax type u2013 I2
    W/tax code -  P2
    Base Amount u2013 Pecentage subject to tax 100%
    Postings Indic- 1
    Calculation u2013 W/tax rate u2013 2%
    Calculation > Withholding Tax Codes > Define Formula for calculating Withholding Tax:
    Currency u2013 EGP
    W/Tax Type u2013 I2
    W/Tax Code u2013 P2
    Valid from u2013 01.01.2009
    To base amount - 999,999,999,999
    W/Tax Rate u2013 2%
    Reduced Withholding Tax Rate for Exemption u2013 BLANK
    Reduction of Base Amount u2013 BLANK
    Decreased Reduction of Base Amount - BLANK
    Calculation > Withholding Tax Codes > Minimum and Maximum Amounts
    Min / Max Amounts for W/Tax Type
    W/Tax Type u2013 I2
    Currency u2013 EGP
    Valid from u2013 01.01.2009
    Min W/Tax Amount u2013 60
    Max W/Tax Amount - 999,999,999,999.00
    Min base amount u2013 300
    Min / Max Amounts for W/Tax Code
    W/Tax Type u2013 I2
    W/Tax Code u2013 P2
    Currency u2013 EGP
    Valid from u2013 01.01.2009
    Min W/Tax Amount u2013 60
    Max W/Tax Amount - 999,999,999,999.00
    Min base amount u2013 300
    W/tax base exem amount u2013 BLANK
    Company Code > Assign WHT Tax Type To Company Code:
    Company Code u2013 0011
    W/Tax Type u2013 I2
    Customer Data u2013 Subject to W/Tax

  • Extended Withholding Tax & MIRO - total balance

    I have the following situation:
    Extended withholding tax is active in company code and the withholding tax type is defined for invoice posting. Everything seems to work correctly except for the following detail: if the invoice has additional charges which are only subject to normal tax rate (VAT) or no tax; then during incoming invoice with MIRO the system cannot balance the accounts; always the difference is the w/t amount even though I have typed the base amount in the corresponding tab. For example, if I receive an invoice for services (no GR) with the following items (the W/T rate is 4% and VAT 16%):
    Amount subject to W/T and VAT:  4,600
    Other charges (no tax): 194
    VAT amount: 736
    W/T amount (calculated): 184
    Net invoice amount: 5,346
    If I type 5346 in the amount field and 4600 in the base amount for w/t then the balance is not correct (difference of 184), unless I type 5530 in the amount field (the others values are calculated correctly).
    Am I doing something wrong or missing configuration?
    Thanks in advance
    JAL

    Hi,
    The amount payable to vendor is 5346 (ie Gross bill of 5530 (less) withholding tax 184). In the header data, let the amount be maintained as 5530. In the withholding tax tab, change the withholding tax base amount to 4600 and the withholding tax amount as 184. This withholding tax amount gets reduced from the vendor bill of 5530.
    On simulation, you can see the screen as per your requirement.
    Regards
    Hari

  • Extended withholding Tax in ECC6

    Hi All
    We have activated extended withholding tax in IDES ECC6.Have completed all the stuff from IMG, while assigning Tax code to Vendot Master, we are not finding the 'WHTType' and 'Liable'  field
    ready to input. These two fields are disable. Further when we assigned Tax code 'C1' from the dropdown in Tax code field , which is ready to input , it is showing the below error that *'IN C1 are not specified in Table T059Z, though it is there in the said table.
    It will be highly appreciable if any one can say the reason or if Notes needs to be applied to activate these fields.
    Error Message'
    Entry IN  C1 does not exist in T059Z (check entry)
    Message no. 00058
    Diagnosis
    Input values must be defined in Table T059Z. The value or values 'IN  C1' are not specified in this table.
    Procedure
    Check whether the input is correct and correct if necessary.
    Procedure for System Administration
    If this is not an incorrect entry, check the system settings and change them if necessary.
    If there is a connection to the Customizing system, you can maintain the system settings by choosing Customizing in the Performance Assistant or Maintain Entries (F5) when displaying the help in a modal dialog box.
    Regards
    Mukta

    Hi ANJIREDDYA
    Thanks for response.We maintained this link under Extended Withholding tax-- Calculation-withholding tax code, where we need to define tax type and tax code against country IN. This is coming under table T059Z as well , when we see through SE16.
    But still we are not able to assign tax code in Vendor master due to the below error.
    Regards
    Mukta

Maybe you are looking for