Classic and Extended Withholding tax

Hi,
Can anybody explain me what is the differance between classic and extended withholding tax.
Rds,
javed

Hi
Text from SAP documentation
SAP provides you with two procedures for processing withholding tax:
"Standard" and extended withholding tax.
"Standard" withholding tax is the procedure that has always been supported by the system. It offers you the following features:
Withholding tax for accounts payable
Withholding tax calculation during payment
Withholding tax code per vendor line item
Extended withholding tax provides the following additional features:
Multiple withholding taxes per customer or vendor line item
Withholding tax calculation for partial payments
Thank You,

Similar Messages

  • Defination of Classic and Extended Withholding Tax

    Hi Gurus,
    Can anyone please explain the defination and exact use of Classic and Extended Withholding Tax difference.
    Thanks in advance.
    Regards,
    Dev Mahendra

    hello,
    "Standard" withholding tax is the procedure that has always been supported by the system. It offers you the following features:
        Withholding tax for accounts payable
        Withholding tax calculation during payment
        Withholding tax code per vendor line item
    Extended withholding tax provides the following additional features:
       Multiple withholding taxes per customer or vendor line item
       Withholding tax calculation for partial payments
    Regards,
    Sankar

  • What is the difference between Classic and Extended Withholding Tax

    Hi,
    Can some please tell me what is the difference between Classic Withholding and Extended Withholding Tax. How can I look at the Withholding Tax deducted from a particular invoice?
    Number Guaranteed.
    Thanks.

    Dear Prem,
    Withholding tax is the basically a tax withheld during the Vendor payment. So when making the payment to vendor the amount will be deduct (i.e withheld tax)
    from the invoice and paid. The customer is actually the tax to tax authorities.
    you can visit for more info.
    Withholding Tax
    For the config steps you go to the IMG path FI > Financila accounting for the Global settings > Withholding Tax
    Withholding tax configuration is done by FI person.
    Hope this helps you
    Prem

  • Classic Withholding Tax and Extended Withholding Tax

    Hi,
    What is the difference between Classic Withholding Tax and Extended Withholding Tax.
    Regards
    RKG.

    Hi
    Withholding tax is calculated and posted to the appropriate withholding tax accounts at different stages, depending on the legal requirements in each country. As a rule, withholding tax is posted at the same time that the payment is posted, in other words the outgoing payment (Accounts Payable) or incoming payment (Accounts Receivable), is reduced by the withholding tax amount. 
    In certain countries, such as Brazil, the Philippines, and Spain, withholding tax can or must be posted when the invoice is posted. This means that the amount receivable or payable is reduced by the withholding tax amount.
    Extended withholding tax supports both concepts. 
    The key concept in extended withholding tax is the distinction between withholding tax type and withholding tax code. While withholding tax types represent basic calculation rules, specific features of these rules - in particular the percentage rate -
    are represented by the withholding tax code. You can define any number of withholding tax codes for a given withholding tax type.
    If a particular transaction requires more than one kind of withholding tax, this is covered in the SAP System by defining more than one withholding tax type.
    When entering a line item, you can enter withholding tax data for each of these withholding tax types.
    How To Configure Withholding Tax?
    Steps for extended withholding tax :
    1. Check withholding tax countries
    2. Define Ex. Withholding tax types for invoice postings
    3. Define Ex. Withholding tax codes
    4. Formula for Ex. Withholding tax calculation
    5. Assign Ex. Withholding tax types to Company code
    6. Activate Ex. Withholding tax
    8. Create a G/L a/C for Ex. Withholding tax
    9. Define A/C for Ex. Withholding tax (DBWW)
    10. Make changes in Vendor master (XK02)
    11. Maintain Company Code Settings:
    Path: IMG -> Logistic -> General -> Taxes on goods movement -> India -> Maintain company code settings
    12. Activate country version for specific fiscal year position
    Path: IMG -> FA -> -> **** -> Taxes on sales purchases -> Basic Setting -> India -> Activate country specific for fiscal year position
    http://help.sap.com/saphelp_erp2005/helpdata/en/e5/0780914acd11d182b90000e829fbfe/content.htm
    nagesh

  • 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

  • Issue with Cross-Company code transactions and Extended Withholding tax

    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?
    Thanks,
    Bapu

  • 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

  • Wrongly Activated Extended Withholding tax before data conversion

    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...

  • Extended Withholding Tax Configuration for USA

    Hi Friends,
    Any one of you upgraded from Classic to Extended Withholding Tax for USA?
    Could you give me a head start or if possible send me configuration docs. We are currently in ECC 6.0.
    Also how do you configure withholding tax for Foreign Vendors (like Canada or UK)?
    Appreciate it!
    Ravi.

    Hello Ajay/Surendra,
    Could you please forward me the Configuration steps to configure extended withholding tax for country code: USA/ Canada to my email: [email protected]
    Thank You
    Joana

  • 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

  • S_pl0_09000447- can i use this for Extended Withholding Tax

    Dear Gurus,
    In my compoany im using Extended Withholding Tax for India, and can i use the Report S_PL0_09000447 - Withholding tax report for the vendor.
    Kindly Advice whether can i use this report for EWT or not.
    if yes how to use it.
    Regards
    karthik

    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
    store the code directly which is not possible with Extended withholding
    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.

  • Suitable BAPI for extended withholding tax

    we are migrating from classic withholding tax to extended withholding tax for which we are modifying all the programs which were using MRHR (invoice) in the background, since MRHR will be replaced by MIRO in extended withholding tax, in this process when we are trying to modify one program, we could not record MIRO, hence  our technical team suggested for use of BAPI functional module, kindly anybody suggest me which is the suitable BAPI for posting of invocie verification.
    Thanx in advance.
    Krishna

    Hi Krishna,
    Please check BAPI_INCOMINGINVOICE_CREATE and let me know.
    Assign points if it useful.
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    Ravinagh Boni

  • 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
    store the code directly which is not possible with Extended withholding
    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.

  • Reprinting of extended withholding tax certificate

    hi all,
    i am at client site and we are configuring the for extended withholding tax here from classical.my focused problem is when i go for tc-J1INREP for reprinting the certificate the error message show no certificate available.
    kindly provide some solutions as well as steps required for it.
    thanks & regards
    nitin

    Dear Nitin
    Kindly give correct TDS certificate number i.e. whole original 10 digit number and original certificate date alongwith other details.
    Hope this will resolve your query.
    Best Regards
    Mukesh Mokashi

  • When to activate Extended Withholding Tax

    Hi,
    We are implementing SAP ECC 6.0 at one of client. It's a first time implementation. My query is when should we activate the Extended Withholding Tax option? Is there any pre-requisites like the mater data should be first migrated to SAP or anything else that should be completed before activating the Extended Withholding Tax? Or we can activate it at any stage?
    Actually we are doing Unit Testing and if I don't activate the Extended Withholding Tax then while creating Vendor Master Data we don't get WHT tab.
    Please advice.
    Thanks,
    Sanjay

    HI,
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    2. If it is new implementation please activate the EWT at any time.
    3. previously there is two methods a.classic wt and 2.  extended wt.
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    I hope above info will resolve your issue else please revert back to me.
    Regards
    MadhuM
    http://wiki.sdn.sap.com/wiki/x/UgTpCw  (RUPEE WORD FORMAT)

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