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

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Hi all,
In 1099 Reporting for US, I have activated Extended Withholding Tax before conversion of data from Classical to Extended Withholding Tax. I have done this in Development system with transport request.
If anybody has come across similar situation, pl help me with your valuable inputs.
1. Will I be able to deactivate the extended withholding tax and do the data conversion and activate again.
2. If not, what will be the consequences of not doing the data conversion of existing data.
Kindly help me to come out of this crisis.
Thanks in advance.
San.

Hi,
Yes it will be possible.
I haven't really faced this situation in EWT, but in another similar migration.
I do not know the extent of customisation you did for EWT or whether the documents you posted after activating did get posted in the EWT area.
The only place I think you may face will be in the migration itself, where these documents may give you errors is in the actual data migration step. But there would be some solution for that.
You need to see what options you have. Can you let this situation continue? Was this migration not a prep for doing the migration in production or just a test? If not then you will need to do something. This should have no impact on any migration you plan for the other systems (Quality/Production) in the landscape.
You can log in an OSS message just in case.
Cheers...

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Hi Gurus,
I am having an issue with Cross-company code transaction while posting expense with 2 different company codes.
In the 2 company codes, one company code is setup for Withholding tax and other was not set.
While posting in FB50, I am getting the below message and system does not allow to post the invoice.
Company codes have different settings for withholding tax treatment
Message no. F5786
Diagnosis
You are entering a document containing at least one vendor or customer item and which has line items in several company codes. The extended withholding tax treatment has been set to active in one of these company codes, but not in one of the other company codes.
System Response
You cannot enter this kind of document.
Procedure
Enter the transaction in two documents.
For this I tried to test the transaction by activating of extended Withholding tax for both the company codes. Then the invoice is posting correctly now.
The point is if I activate extended withholding tax for the Company code which is not using the setup, will it face any issues in other areas? and also kindly advice whether is this a right way to set up to fix the current problem.
Thanks for the Support and early response will be appreciated.
JBC.

Hi Mamta,
Thanks for the Response. I think you misunderstood my scenario.
For Eg in FB60 with Co code 5065:
I am debiting the Expenses for Co Code 1000(Witholding tax not active) and crediting the Bank Account of Co Code 5065(Withholding tax setup is done for this co code). When I tried to post with these line items I have getting the error.
Posting        GL                   Co Code
Dr          106520(Exp)            1000
Cr          202020(Bank)           5065
For this I tried by activating the Withholding tax for Co code 1000 which is not active before and post it. The system allows me to post the invoice.
I want to know whether is this a right way to solve this issue and will it impact on any other areas by only activating the Withholding tax for a Co code?
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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 .
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how to activate extended Withholding tax in VIM 6 for EHP6 .
many Thanks
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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.
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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
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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

Message FZ626 -Payment orders are not defined for extended withholding tax

Hi Gurus,
Would you please help me with the message below:
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 !
TREAD LOCKED SINCE IT IS DUPLICATED FROM THREAD payment order are not defined for extended withholding tax

Hi,
On the analysis, the system expects an entry in the T059Q table with
code as XX.
The reason being in the extended withholding tax we use multiple
witholding tax codes and these entries are stored in the table
with_item. And in BSEG we populate the field withholding tax code i.e.
BSEG-QSSKZ with the value 'XX'. In classical withholding tax we used to
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tax.
As the field BSEG-QSSKZ refers to the values in the table T059Q-QSSKZ
the entry 'XX" needed in this table for the corresponding country of the
company code to maintain the correct relationship and consistent
database information.
Hence for the statistical purpose and for the internal calculations we
need an entry in the table T059Q. Could you please maintain this code
i.e. 'XX' also in the table T059Q in a test system? Then retest your issue.
This should resolve your issue.
Kind Regards,
Vanessa.

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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.
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Error Message'
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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.
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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.
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*award points if this helps*
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CA. Karthik Narayan N S
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Hi,
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Thanks,
SS

Hi,
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Activating Extended Withholding Tax - New Company Code

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