India Witholding Tax - rounding rules
We have come across a legal requirement for our India branch where WHT should be rounded
up.
For example:
Even if the witholding tax amount is Indian Rs. 10.01 this would get rounded off (up) to the next rupee to become
Rs. 11.00.
Also this is used for- Tax Deduction at Source scenario.
I am not a fico configurer however I am covering for a colleague. I would greatly appreciate some help with this change., as soon as possible.
I believe its actually a fairly small configuration in the extended witholding tax section of SPRO.
Please can you kindly send me detailed Step by Step instructions on how to configure the above request?
Thanks very much,
Warm Regards
Edited by: Jays77 on Dec 21, 2010 4:48 PM
Hi,
If you are using the Extended WHT
GO SPRO>Financial Accounting -> FA Global Settings> Withholding Tax> Extended WHT> Calculation -> WHT Type -> Define Withholding Tax Type for Invoice Posting and Define Withholding Tax Type for Payment Posting (For Payment)
There you need to select under Rounding rule tab Rounding w/tax amount Up tab.
Regards,
Kishore
Similar Messages
-
SAP B1 - Witholding Tax Rounding Difference
Hi all,
Is there a way to turn off rounding difference for Withholding Tax? There isn't any rounding at Withholding Tax Table but the AP Invoice displayed the value with rounding.
Tried the setting at Administration > Setup > financial > Currencies > Set the currency to no rounding. But, the result is still the same.Actually, I don't prefer a rounding. Is there a way to turn it off? The case that I encountered when the base amount of an AP invoice is 7360 with 3% witholding tax. The Withholding tax amount in Withholding Tax table show 220.80 but when back to AP Invoice document, it was round up to 221.00. I want the amount to reflect what is calculated in Witholding Tax Table as 220.80.
Please advise what could be the solution. Thanks. -
Withholding Tax - Rounding Rule
Dear Friends,
My TDS amount if working out to INR 112.08, as per rounding rule defined (100) in config it is reflecting as 113.00
Actually i tried using different options in Quality server, but am not getting what i expect.
if TDS if below 50 paisa, it should round to previous rupee, 50 paisa and above 50 paisa it should round off to next rupee, like maths.
What kind of rounding rule should i define? Is it possible
Thanks
SanjayDear Sir,
Thanks your responce......
I have done same setting in QTY server...
After complete configuration assign the tax code in vendor master ....
When i pass the first entry the Amount of TDS calculate is right
Basic amount: 194933 Dr
Vendor a/c : 175439 Cr
TDS : 19494 Dr.
net tds Amount is Rs 19493.30 .
But after this... I want to pass another entry
Basic : 194933 Dr.
Vendor 175440 Cr
TDS : 19493 Cr.
The TDS amount is 19493....
every vendor 1 entry tds amount is correct but when i pass 2 entery in the vendor the TDS amount is wrong...
Kindly help me ......
Regards
Pankaj -
Tax code rounding rule not working in FTXP
Dear Experts,
I have configured new condition type for a new tax code to generate a seperate line item routed to a G/L account. The rounding rule in the condition type is commercial. Everything is looking proper up to this, but when I simulate an entry using this tax code, the seperate line item that is generated is passed in paise. I am not sure why this is happening eventhough the rounding rule is commercial. Someone please give an idea if something is missing.
Regards
HarikaHi Madhu,
can u help me on this too please which seems close to Harika issue
http://scn.sap.com/message/14071745#14071745
sorry Harika,
Thanks,
Hamid -
Hello Experts,
Can any one explain or send docs for Configuration of witholding tax configuration for Customers
[email protected]Configuration Guide
1 Overview
This configuration guide provides the information you need to set up the configuration for withholding tax under Financial Accounting. It covers configuration relating, classic withholding tax, extended withholding tax.
2 Configuration
2.1 Organization structure
2.1.1 Organization Setup Step
N.A
2.1.1.1 Use
N.A
2.1.1.2 Prerequisites
N.A
2.1.1.3 Procedure
1. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu <IMG Menu path>
2. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
- In above table enter the field name, description, and usage of every relevant field.
- In the table below, list down all the actual values set up in the client. Add or delete columns as necessary.
<Field -1> <Field -2> <Field -3> <Field -4>
Value 1-1 Value 2-1 Value 3-1 Value 4-1
2.2 Process Configuration for withholding Tax
The following are the configuration steps for Withholding tax.
2.2.1 Classic withholding Tax
Maintain Countries
Maintain Types of Recipient
Define Income Types
Maintain Tax Codes
Define Form Names for Extended Reporting
Define Output Groups
2.2.1.1 Maintain Countries
The withholding tax country is needed for printing the withholding tax form. Since the list of country IDs prescribed by law is different from the list in the system, you have to define the withholding tax countries again.
2.2.1.1.1 Use
Used For printing the withholding tax forms.
2.2.1.1.2 Prerequisites
N.A
2.2.1.1.3 Procedure
3. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Basic Settings Maintain Countries
4. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country Key country key contains information which the system uses to check entries such as the length of the postal code or bank account number
Withholding tax country An additional country is needed for calculating or reporting withholding tax.
Description Text of country
2.2.1.2 Maintain Types of Recipient
The type of recipient categorizes the vendor, which is necessary for printing the withholding tax form.
2.2.1.2.1 Use
Used For printing the withholding tax forms.
2.2.1.2.2 Prerequisites
N.A
2.2.1.2.3 Procedure
5. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Basic Settings  Maintain Types of Recipient
6. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country Key country key contains information which the system uses to check entries such as the length of the postal code or bank account number
Rec. Type Type of recipient"
Description Description of recipient type
2.2.1.3 Define Income Types
The income type is a classification of your (foreign) vendors according to income.
2.2.1.3.1 Use
You need the income type as a specification for the withholding tax return...
2.2.1.3.2 Prerequisites
N.A
2.2.1.3.3 Procedure
7. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Basic Settings  Define Income Types
8. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Income type Type of income subject to withholding tax
Text Description of income type
2.2.1.4 Maintain Tax Codes
The income type is a classification of your (foreign) vendors according to income.
2.2.1.4.1 Use
You need the income type as a specification for the withholding tax return...
2.2.1.4.2 Prerequisites
N.A
2.2.1.4.3 Procedure
9. Access the activity using the following navigation options:
Transaction Code OBC7
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Calculation Maintain Tax Codes
10. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries such as the length of the postal code or bank account number.
W.tax code The tax codes are unique per country
Description Text of the tax code
Off.w. tax .code Key which is used for withholding tax reporting on official forms.
Percentage subject to tax Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code
Net base for tax contributions Indicator that the taxes on sales/purchases are not used in the base amount for withholding tax.
Currency Currency of the minimum amount defined for the withholding tax report
Minimum Amount Field used define minimum tax it is used for Japan only N.A
Withholding tax rate Percentage rate used in conjunction with the withholding tax base amount to calculate the withholding tax amount
Reduced Rate Percentage rate which is to be used for the withholding tax base amount if there is a valid exemption certificate, to calculate the withholding tax amount
Withh. tax formula withholding tax is to be calculated according to a special procedure
Germ. reunification tax German Reunification Tax for the Withholding Tax N.A
Posting with payment The payment amount is reduced by the withholding tax amount posted
Region The region forms part of the address
Provincal tax code Together with the country key, the region and the withholding tax class,the fiscal province code defines a reporting key that is required for reporting withholding tax (DME) and by the tax authorities (Spain). N.A
Income type Type of income subject to withholding tax
2.2.1.5 Define Accounts for Withholding Tax
You define the account numbers of your withholding tax accounts. The system posts the tax amount to these accounts when clearing open items.
2.2.1.5.1 Use
Used for document posting in FI.
2.2.1.5.2 Prerequisites
N.A
2.2.1.5.3 Procedure
11. Access the activity using the following navigation options:
Transaction Code OBYS
IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Postings Define Accounts for Withholding Tax
12. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Transaction QST The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.
Tax code used to differentiate account determination
Account GL account no.
2.2.1.6 Define Form Names for Extended Reporting
You define the names of the forms for the withholding tax return to your vendors.
2.2.1.6.1 Use
You can use the form ID to define country-specific forms.
2.2.1.6.2 Prerequisites
Form should be there
Company code
2.2.1.6.3 Procedure
13. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Reporting Define Form Names for Extended Reporting
14. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Program name The name of the program you want to edit
Company code The company code is an organizational unit within financial accounting.
Form ID The identification for a form or a form set enables you to access a particular form or set of forms from a selected group of forms
Form Form which is to be displayed
2.2.1.7 Define Output Groups
You define the combination of outputs which is required for a given data source
You would define two output groups in Customizing:
One to define the data selection (accounts payable, etc.) and the form and file to be used.
One to define a data selection (accounts receivable, etc.) and the list to be used.
2.2.1.7.1 Use
You can for different reporting purpose..
2.2.1.7.2 Prerequisites
Form
DME Engine
2.2.1.7.3 Procedure
15. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Generic Withholding Tax Reporting Define Output Groups
16. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Process Type type of process that will be triggered by the program
Output Group Indicates the output group as used in withholding tax reporting. An output group is the combination of outputs which is required for a given data .
Customizing view withholding tax scheme in your country
Reported doc. You can choose in which context the withholding tax data is to be displayed
Open items selecting this option will allow you to see also the open items
Group item according to fiscal year items belonging to vendor/customer B are listed together with items of vendor/customer A if A is specified as fiscal address of B.
No exemptn data Excludes data relating to withholding tax exemption
No tax data Excludes data relating to taxes on sales/purchases
Title of output list focused on The output list is divided into four sections, covering Various information
Form printing Description for printing form
DME File Using this parameter, you can control whether the data medium exchange should be carried out to a temporary sequential file
Format tree Used together with the DMEE tree type to uniquely identify a format tree
Tax Ref.1 There is a parameter type for every additional parameter for a company code
Tax Ref.2 There is a parameter type for every additional parameter for a company code
User Program Your report should contain a form
2.2.2 Extended withholding Tax
Withholding tax Country
Extended withholding tax Malaysia, Singapore, Brunei, Nepal ,Thailand
Check Withholding Tax Countries
Define Withholding Tax Codes
Check Recipient Types
Define Income Types
Define Withholding Tax Type for Invoice Posting
Define Withholding Tax Type for Payment Posting
Define Rounding Rule for Withholding Tax Type
Define Withholding Tax Codes
Define Formulas for Calculating Withholding Tax
Portray Dependencies Between Withholding Tax Types
Define Min/Max Amounts for Withholding Tax Codes
Assign Withholding Tax Types to Company Codes
Activate Extended Withholding Tax
Define Accounts for Withholding Tax to be Paid Over
Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry
Define Accounts for Self-Withholding Tax
Define Accounts for Withholding Tax Offsetting Entry
Define Numbering Classes
Define Numbering Groups
Define Number Ranges
Assign Numbering Group to Numbering Class
Assign Numbering Group to Numbering Class
Numbering Concept Option 1: Assign Numbering Class
Numbering Concept 4: Assign Numbering Group
Assign Forms for Withholding Tax Certificates
Define Minimum Amounts per Withholding Tax Code
Define Output Groups
2.2.2.1 Check Withholding Tax Countries
The withholding tax country is needed for printing the withholding tax form. Since the list of country IDs prescribed by law is different from the list in the system, you have to define the withholding tax countries again.
2.2.2.1.1 Use
Used For printing the withholding tax forms.
2.2.2.1.2 Prerequisites
N.A
2.2.2.1.3 Procedure
17. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Extended Withholding Taxs Basic Settings  Check Withholding Tax Countries
18. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country Key country key contains information which the system uses to check entries such as the length of the postal code or bank account number
Withholding tax country An additional country is needed for calculating or reporting withholding tax.
Description Text of country
2.2.2.2 Define Withholding Tax Codes
If your national tax authorities use withholding tax keys to identify the different withholding tax types, you can define these official names for your tax codes here.
2.2.2.2.1 Use
System can therefore assign the withholding tax items to the correct withholding tax return.
2.2.2.2.2 Prerequisites
N.A
2.2.2.2.3 Procedure
19. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Extended Withholding Taxs Basic Settings  Define Withholding Tax Codes
20. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Official Key Official withholding tax codes are defined which must be included in official reports.
Name Description of official key
National tax code With this value you can classify every official tax key. This information is required on certain legal reports
Country Off. w/tax key Nat. Tax Code Text (40 characters)
NP COMN Commission
NP CONT Contractors
NP DIVD Dividends
NP INTR Interest
NP MANT Maintenance
NP PROF Professional
NP RENT Rent
2.2.2.3 Check Recipient Types
The type of recipient categorizes the vendor, which is necessary for printing the withholding tax form.
2.2.2.3.1 Use
To print from for vendors.
2.2.2.3.2 Prerequisites
N.A
2.2.2.3.3 Procedure
21. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Extended Withholding Taxs Basic Settings  Check Recipient Types
22. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
With holding tax type This indicator is used to classify the different types of withholding tax
Rec. Type The type of recipient can be defined in the vendor master record
Text Description of Rec. type
Country Withhld tax type Recipient type Text
NP I1 NR Non - residents
NP I1 PN Person Not Registered
NP I1 PR Person Registered
NP P1 NR Non - residents
NP P1 PN Person Not Registered
NP P1 PR Person Registered
TH I1 3 Phaw.Ngaw.Daw. 03
TH I1 53 Phaw.Ngaw.Daw. 53
TH I1 54 Phaw.Ngaw.Daw. 54
TH I2 3 Phaw.Ngaw.Daw. 03
TH I2 53 Phaw.Ngaw.Daw. 53
TH I2 54 Phaw.Ngaw.Daw. 54
TH P1 3 Phaw.Ngaw.Daw. 03
TH P1 53 Phaw.Ngaw.Daw. 53
TH P1 54 Phaw.Ngaw.Daw. 54
TH P2 3 Phaw.Ngaw.Daw. 03
TH P2 53 Phaw.Ngaw.Daw. 53
TH P2 54 Phaw.Ngaw.Daw. 54
TH W1 2 Phaw.Ngaw.Daw. 02
TH W1 3 Phaw.Ngaw.Daw. 03
TH W1 53 Phaw.Ngaw.Daw. 53
TH W1 54 Phaw.Ngaw.Daw. 54
TH WP 2 Phaw.Ngaw.Daw. 02
TH WP 3 Phaw.Ngaw.Daw. 03
TH WP 53 Phaw.Ngaw.Daw. 53
TH WP 54 Phaw.Ngaw.Daw. 54
2.2.2.4 Define Income Types
The income type is a classification of your (foreign) vendors according to income.
2.2.2.4.1 Use
You need the income type as a specification for the withholding tax return...
2.2.2.4.2 Prerequisites
N.A
2.2.2.4.3 Procedure
23. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Define Income Types
24. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Income type Type of income subject to withholding tax
Text Description of income type
2.2.2.5 Define Withholding Tax Type for Invoice Posting
You define the withholding tax type for the posting at the time of entering an invoice. This withholding tax type does not have any effect on the payment.
2.2.2.5.1 Use
The withholding tax type used for the posting at the time of entering an invoice.
2.2.2.5.2 Prerequisites
N.A
2.2.2.5.3 Procedure
25. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Type  Define Withholding Tax Type for Invoice Posting
26. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/TAX type No. By numbering withholding tax types, you can have withholding tax calculated in a particular sequence
Base amount Net amount,
Modif net amount.
Gross amount,
Tax amount ,
Modif tax amount ,
Inherit base,
Base amount Reductn the system uses the selected amount as the base amount to calculate the withholding tax amount.
Rounding rules W/Tax comm.round,
Round w/Tax amnt up,
Round w/tax amount To enable the system to calculate withholding tax, you must specify a rounding rule for each withholding tax type.
Post w/tax amount TShe withholding tax amount is both calculated and posted
Accumulation type No accumulation,
Per calendar year,
Per quarter,
Per month,
Per year ,starting with mnth
Acc. W/Tax to max. Is used to accumulated withholding tax
W/tax base manual withholding tax type, the field withholding tax base amount is ready for input
Manal w/tax amnt For document entry the field withholding tax base amount is ready for input for this withholding tax type
No cert. numbering Prevents certificate numbering
Region the region forms part of the address
Base Amount W/tax code level,
Type Level Defines the minimum/maximum withholding tax base amount at withholding tax code level.
Withholding tax amount W/Tax code level,
Type Level Defines the minimum/maximum withholding tax amount at withholding tax type level
2.2.2.6 Define Withholding Tax Type for Payment Posting
You define the withholding tax type for posting at the time of paying. You also have to enter the withholding tax information when entering the document for this withholding tax type. (Only for Thailand)
2.2.2.6.1 Use
The withholding tax type used at the time of posting.
2.2.2.6.2 Prerequisites
N.A
2.2.2.6.3 Procedure
27. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Type  Define Withholding Tax Type for Payment Posting
28. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/TAX type No. By numbering withholding tax types, you can have withholding tax calculated in a particular sequence
Base amount Net amount,
Modif .net amount.
Gross amount,
Tax amount ,
Modif tax amount ,
Inherit base,
the system uses the selected amount as the base amount to calculate the withholding tax amount.
Rounding rules W/Tax comm.round,
Round w/Tax amnt up,
Round w/tax amount To enable the system to calculate withholding tax, you must specify a rounding rule for each withholding tax type.
Cash discount W/tax pre c/dis,
c/dis pre w/tax
Post w/tax amount TShe withholding tax amount is both calculated and posted
Accumulation type No accumulation,
Per calendar year,
Per quarter,
Per month,
Per year ,starting with month,
Combined Accum
Acc. W/Tax to max. Is used to accumulated withholding tax
W/tax base manual withholding tax type, the field withholding tax base amount is ready for input
Manal w/tax amnt For document entry the field withholding tax base amount is ready for input for this withholding tax type
Self W/holding When you come to make a payment, you can then decide, on a case by case basis, whether self-withholding should apply
W/Tax alrdy w/hd the amount can be entered when you post the invoice
W/tax for Pmnt the withholding tax amount can be entered manually for incoming and outgoing payments
No.Cert. numbering Prevents certificate numbering
Region the region forms part of the address
Base Amount W/tax code level,
Type Level Defines the minimum/maximum withholding tax base amount at withholding tax code level.
Withholding tax amount W/Tax code level,
Type Level Defines the minimum/maximum withholding tax amount at withholding tax type level
Central invoice No centr.invoice,
Cent.inv & 1st p.pmt,
Central inv.prop. indicator, "Central invoicing" is not applied to this withholding tax type. N.A keep it as no.
Minimum check Minimum check at item level,
Check min base amnt at pmnt doc level,
Min .base amnt check at doc invoice level,
Amount min.check at payment doc level,
Tax exempt amount check at Document level You can select any indicator system calculate the tax and post after checking the specified base amount
2.2.2.7 Define Rounding Rule for Withholding Tax Type
You define rounding rules for the individual withholding tax types.
2.2.2.7.1 Use
Rounding rules only apply to the posting of withholding tax amounts in the appropriate company code
2.2.2.7.2 Prerequisites
N.A
2.2.2.7.3 Procedure
29. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Type  Define Rounding Rule for Withholding Tax Type
30. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Company code NP01 The company code is an organizational unit within financial accounting.
W/th .type I1,P1 This indicator is used to classify the different types of withholding tax.
Currency NPR Currency key for amounts in the system.
Unit 100 Unit to be round off
2.2.2.8 Define Withholding Tax Codes
You define the withholding tax codes rounding for calculating withholding tax.
2.2.2.8.1 Use
Used for calculating the withholding tax.
2.2.2.8.2 Prerequisites
N.A
2.2.2.8.3 Procedure
31. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Codes  Define Withholding Tax Codes
32. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
w/tax code One or more "withholding tax codes" are assigned to each withholding tax type
Off.W/Tax Key official withholding tax codes are defined which must be included in official reports
Percentage subject to tax Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code.
Post.Indic If you set this indicator tax amount is deducted accordingly
1 - Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code.
3- Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code.
With/tax rate This is the percentage rate applied to the withholding tax base amount to arrive at the withholding tax amount
With /tax rate ( fraction) Withholding tax rate counter, if the rate can be entered as a fraction
W.tax From Indicator that withholding tax is to be calculated according to a special procedure
Region The region forms part of the address
Prov.tax.code Together with the country key, the region and the withholding tax class,the fiscal province code defines a reporting key that is required for reporting withholding tax (DME) and by the tax authorities (Spain).
Income type Type of income subject to withholding tax
2.2.2.9 Define Formulas for Calculating Withholding Tax
You define formulas (scales) for calculating withholding tax. In order to use a formula for calculating withholding tax, you must enter the national currency in the Currency key field of the relevant company code.
2.2.2.9.1 Use
Used for defining the specification like from which date ,up to what amount the tax rate is applicable
2.2.2.9.2 Prerequisites
N.A
2.2.2.9.3 Procedure
33. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Codes  Define Formulas for Calculating Withholding Tax
34. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
currency Currency key for amounts in the system.
Withhld tax type This indicator is used to classify the different types of withholding tax
w/tax code One or more "withholding tax codes" are assigned to each withholding tax type
Wcty an additional country is needed for calculating or reporting withholding tax
Valid from The date valid from
To base amnt Maximum withholding tax base amount up to which the withholding tax rate specified is to be used
Whld Tax Percentage rate, which is used in conjunction with the withholding tax base amount to calculate the withholding tax amount
Red RT Percentage rate which is to be used for the withholding tax base amount if there is a valid exemption certificate, to calculate the withholding tax amount
Reduce.base amt. Amount by which the base amount is to be reduced in order to determine the withholding tax amount by means of the withholding tax rate
Dec.red.bse.amt Amount by which the base amount is to be reduced with withholding tax exemption in order to determine the withholding tax amount by means of the decreased withholding tax rate
2.2.2.10 Portray Dependencies between Withholding Tax Types
You can represent dependencies between withholding tax categories.
2.2.2.10.1 Use
You can use in a sequence of withholding tax in a sequence.
2.2.2.10.2 Prerequisites
N.A
2.2.2.10.3 Procedure
35. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Base Amount Portray Dependencies Between Withholding Tax Types
36. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/tax type no. By numbering withholding tax types, you can have withholding tax calculated in a particular sequence
Depend on type no. Sequence number of the withholding tax type whose withholding tax amount has some influence in the calculation of the withholding tax base amount
Table values
Cty Wth.t.type W/tax no. Depen.type Name
NP I1 1 Invoice posting - EWT
NP P1 2 Payment posting - EWT
2.2.2.11 Define Min/Max Amounts for Withholding Tax Codes
you define minimum and maximum amounts for withholding tax codes. In the withholding tax base exemption amount field you can specify an amount which is deducted when calculating the with holding tax base. The amount of the tax exemption does not have any effect when matching the withholding tax base with the minimum, because the base and the minimum are matched before the tax-exempt amount is deducted.
2.2.2.11.1 Use
Used for exemption amount field you can specify an amount which is deducted when calculating the with holding tax base.
2.2.2.11.2 Prerequisites
N.A
2.2.2.11.3 Procedure
37. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Minimum and Maximum Amounts Define Min/Max Amounts for Withholding Tax Codes
38. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/tax Code One or more "withholding tax codes" are assigned to each withholding tax type.
Currency Currency key for amounts in the system.
Valid from The date valid from
Minimum W/tax amount Minimum withholding tax amount. The withholding tax amount calculated if only posted if it exceeds this minimum amount.
Maximum W/tax amount Maximum withholding tax amount. If the withholding tax amount calculated exceeds this maximum, the system posts the maximum amount (and not the actual tax amount
Minimum base amount Minimum withholding tax base amount.
W/Tax bse exem.amount The withholding tax base exemption amount is deducted from the base amount before the withholding tax amount is calculated
2.2.2.12 Assign Withholding Tax Types to Company Codes
You assign withholding tax categories to company codes.
2.2.2.12.1 Use
To work with withholding tax .
2.2.2.12.2 Prerequisites
Company code
Tax code
2.2.2.12.3 Procedure
39. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Company Code Assign Withholding Tax Types to Company Codes
40. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Company code The company code is an organizational unit within financial accounting.
Withhld tax type This indicator is used to classify the different types of withholding tax.
Recipient type The type of recipient can be defined in the vendor master record
With/tax agent you tell the system that for this withholding tax type, the company code is entitled to withhold tax on behalf of a vendor
W/Tax obligated from Date from which.The company code is obligated to withhold tax for the given withholding tax type
Oblig. to W/Tax Until Date to which. The company code is obligated to withhold tax for the withholding tax type.
W/tax Number This is a number issued by the tax authorities per withholding tax type.
Subject to W/tax you tell the system that the company code for this withholding tax type is subject to withholding tax.
Self Withhldg agent the company code can withhold tax on its own behalf for this withholding tax type
Wxeption number Numbered assigned by the relevant authorities for exemption from withholding tax.
Exemption reas. used to classify different types of exemption from liability to a particular withholding tax.
Exemption rate Rate of exemption from withholding tax.
Exempt from Date from which withholding tax exemption applies.
Exempt to Date up to which withholding tax exemption applies.
2.2.2.13 Activate Extended Withholding Tax
You can activate extended withholding tax.
2.2.2.13.1 Use
To work with extended withholding tax.
2.2.2.13.2 Prerequisites
Company code
2.2.2.13.3 Procedure
41. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Company Code Activate Extended Withholding Tax
42. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Company code The company code is an organizational unit within financial accounting.
Extended w/tax You select this indicator; you activate extended withholding tax processing.
2.2.2.14 Accounts for Withholding Tax to be Paid Over
You define the accounts for the withholding tax to be paid over.
2.2.2.14.1 Use
Used for posting extended withholding tax.
2.2.2.14.2 Prerequisites
Tax code
GL Account must exist in company code
2.2.2.14.3 Procedure
43. Access the activity using the following navigation options:
Transaction Code OBWW
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Accounts for Withholding Tax Accounts for Withholding Tax Define Accounts for Withholding Tax to be Paid Over
44. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Transaction WIT The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.
Withholding tax type Indicates a grouping of valuation areas to facilitate the administration of the table of standard accounts by minimizing the number of entries.
Withholding tax code Key which has a different meaning depending on the procedure. It is used to differentiate account determination.
Account The G/L account number identifies the G/L account in a chart of accounts.
2.2.2.15 Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry
You can define the accounts for the withholding tax offsetting entry for the "grossing up" procedure .
2.2.2.15.1 Use
Used for posting extended withholding tax.
2.2.2.15.2 Prerequisites
Tax code
GL Account must exist in company code
2.2.2.15.3 Procedure
45. Access the activity using the following navigation options:
Transaction Code OBWU
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Accounts for Withholding Tax Accounts for Withholding Tax Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry
46. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Transaction GRU The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.
Withholding tax type Indicates a grouping of valuation areas to facilitate the administration of the table of standard accounts by minimizing the number of entries.
Withholding tax code Key which has a different meaning depending on the procedure. It is used to differentiate account determination.
Account The G/L account number identifies the G/L account in a chart of accounts.
2.2.2.16 Define Accounts for Self-Withholding Tax
You can define the accounts to which withholding tax is posted.
2.2.2.16.1 Use
Used for posting extended withholding tax.
2.2.2.16.2 Prerequisites
GL Account must exist in company code
2.2.2.16.3 Procedure
47. Access the activity using the following navigation options:
Transaction Code OBWS
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Accounts for Withholding Tax Accounts for Withholding Tax Define Accounts for Self-Withholding Tax
48. On the Overview screen, make the following entries: -
Dear All,
In one of our client service tax is rounded off to nearest paisa i.e. Rs. 145.98
But the client need to round-off to nearest rupees i.e. 146.00
Is it possible to round-off to nearest rupees? If it so than please explain me in detail how to do that.
Thanks & Best Regards,
nmsHi Vijay,
If you do what you have mentioned - the system will round the amount irrespective of whether it is more than .50 or not. Ex. If you select rounding rule as A it will round up to next rupee eventhough the amount is ex. 50.02 will round as 51.
Rounding will be configured in tax procedure against Condition type you have to select as 17 in Caluclation type coloumn.
BSR -
Different rounding rule by customers
Hi all,
I have a quiestion about rounding rule.
Is there any way to change rounding rule to total price after tax by customers?
I understand rounding rule can be controled by condition type. However, I am looking for a way to apply a different ronding rule in each sales by customers.
For example, for a sales order from a customer A, I'd like to have its total price after tax to be applied "commercial" rounding rule.
but for a sales order from a customer B, I want it to be "round up".
Both customers maintain a same pricing procedures and everything. Only different should be its rounding rule as I prefer.
I truely appreciate for your help.
Thank you very much.
Misaki
Edited by: Misaki Nagaya on Jul 30, 2010 10:43 AMHi Rajesh,
IMG Personnel Time Management Time Data Recording and Administration Absences Absence Catalog Absence Counting Rules for Absence Counting (New) Define Rules for Rounding Counted Absences
V_T559R
In this step, you set rounding rules for absence and attendance counting.
If you specify an hours or day multiplier for counting attendances and absences, the values determined can have several places behind the decimal point. It is difficult to use these values for quota deduction and payroll. In this step, therefore, you set rules for rounding the values.
You use concrete numbers for the rounding rules and can specify whether you want:
Only values within the specified interval to be rounded or the interval to be rolled
The specified upper and lower limits to be included in the calculation
You can specify several subrules for a rounding rule and number them sequentially. The system runs through the subrules in sequential order until it finds one that applies.
Example
For absences, you use a counting rule that is counted using an hours multiplier of 80%. You want whole numbers (full hours) to be determined in counting.
Define a rounding rule
With a lower limit of 0.5 (inclusive)
With an upper limit of 1.5 (not inclusive)
With a target value of 1
You want the rule to be rolled, that is, to apply also to the following intervals:
1.5 - 2.4 (rounded to 2)
2.5 - 3.4 (rounded to 3)
and so on.
If you have any query's on this pls ask me.
Thanks and Regards,
Revathi. -
Friends,
I have a question about 1099 witholding. We are configured with classic and extended witholding tax. Currently my company is not witholding tax, but now for only few vendors they want to witholding 30% tax and for rest not withold. How can I do this for just few vendors, and not others and where do I do.
Also when we withold tax, it should do automatic posting. How can I accomplish this and what account should I set debit and what as credit.
Please give me a solution.
Thanks for your help.
Ritu.Hi
Steps
1. Check withholding tax countries
2. Define official withholding tax code
3. Define business places
4. Maintain factory calendar
5. Assign factory calendars to business place
6. Define Ex. Withholding tax types for invoice postings
7. Define EX withholding tax types for payment posting
8. Define Ex. Withholding tax codes
9. Portray dependencies between tax types
10. Check recipient types
11. Maintain due dates
12. Assign Ex. Withholding tax types to Company code
13. Activate Ex. Withholding tax
14. Maintain surcharge calculation methods
15. Maintain surcharge Tax codes (separate tax codes)
16. Maintain surcharge rates (surcharge combined with basic WH tax codes)
17. Create a G/L a/C for Ex. Withholding tax
18. Define A/C for Ex. Withholding tax (OBWW)
19. Make changes in Vendor master (XK02)
20. Maintain Company Code Settings:
Path: IMG -> Logistic -> General -> Taxes on goods movement -> India -> Maintain
Company code settings
21. Specify the document type
22. Maintain number groups
23. Maintain number ranges
24. Assign number ranges to number group
25. Maintain number groups and SAP script form (for TDS certificates)
26. Maintain number ranges
27. Maintain number ranges to number groups
28. Postings (F-43)
29. Enter remittance challan
30. Enter bank challan
31. Printing of TDS certificates
32. Printing of annual return
regards,
R.Ramakrishnaraj -
Hi All,
Where do i find tax rounding options for GL accounts.hii
path for rounding up of withholding tax types
SPROFINANCIAL ACCOUNTING NEWFINANCIAL ACCOUNTING GLOBAL SETTINGSWITHHOLDING TAXEXTENDED WITHHOLDING TAXCALCULATIONWITH HOLDING TAX TYPE--DEFINE ROUNDING RULE FOR WITHHOLDING TAX.
Hope u get the answer
please assign points
sejal -
Hi
Whilst invoicing the service tax amount is 3656.5 which rounded off to 3656 and whilst payment it is 3657.
In the tax type I have selected w/tax comm round.
could you help
regards
JimmyHi,
Check the withholding tax type for payment and check the rounding rules.
Regards,
Krishna Kishore -
Hi there,
i have a problem while I'm adding an AR Invoice Document contented witholding Tax, using DI API 2005 SP01.
i have an error message "Total Taxable amount of all rows exceeds the based amount"
Seems like the base amount is never filled, because in the DI API i can not find a way to fill it (base amount is a read only field).
does anyone know how to solved this issued
thanks for all your solution
rgds
alvinHi Edward,
thanks for your quick reply
regarding to your answer,
i'm using the latest patch of 2005A SP01 (PL 22)
if i created via SBO interface (GUI), as we knew that base amount in WTax Table
is filled automatically depend on Total Before Discount (in case of Net), but
my problem is when i create via DI API (SDK) object (Witholding Tax Object) (not using SBO GUI). I cannot set the base amount value, so I got those Error message which i already posted above.
Please your advice
Thanks & rgds
alvin -
Dear all,
A problem occurred during the creation of a new document (e.g. from FB70, FB60u2026) using a GL Account with Tax Round up.
In fact I need to insert a value in the field BSEG-GSBER not only for GL Account with Tax Round up but also for the GL Account inserted in FTXP of my Tax Code.
Unfortunatly, during the creation of the new document we speak about, this field appears non-editable (display mode).
I hope I was clear.
Can you suggest me a way to solve this problem?
Thanks in advanceHi Manoj,
Use the following as an example to create rounding in tax amount.
VAT_BaseAmt=Total
VAT_TaxAmt=VAT_BaseAmt*VAT_Rate
VAT_TaxAmt=Round(VAT_TaxAmt,0)
i dont think that this will round 23.21 to 24 but it will round 23.85 to 24. Try this.
Thanks,
Joseph -
I am trying to compensate two open line items (which refere to the same document) and for which we did a payment in advance.
In F-53 we set the indicator for Special Ledger(we work with special ledger to payment in advance) but witholding tax calculation is wrongly done. Otherwise if we do no set the indicator for Special ledger the calculation is properly done (but in this case the value paid in advance is not considered...so we can't do this).
Please, could someone help me??
I've already checked vendor master data and witholding tax is properly defined. I also checked the open line items and they look ok.
Tks,
NaejDear all,
without a practical example with all the posted documents and the business process, is very difficult to help You. Anyway the down payment ia a payment in advance and It should contain WT amount in case Your vendor has the WT type defined at the payment time. When You do the final payment by f-53 and You clear the DP and the invoice, the System should contains two WT line items: the first with the amount equal to the one posted into the Down payment and with the contary sign, the second that contains the total calculated WT amount.
I hope this helps.
Mauri -
Company code 1000's witholding tax reference number is missing
Hello All,
We are running the report RFIDYYWT / t.code S_P00_07000134 for the first time to file tax returns in the US.
And we see the following errors;
27 Company code 1000's witholding tax reference number is missing
28 EDI identifier for company code 1000 is missing
I did check the Additional Data for our US company code on OBY6 but there are no fields as such for Withholding Tax Reference and EDI Identifier.
Also checked the Output Group US1 config under Withholding Tax. Not sure about Parameter Types "Tax Ref. 1" and "EDI Ref." fields.
I see different threads with similar issues but could not find a solution for this specific problem. Could someone help us fix this problem so we can file this year's returns on time ? This is turning out to be a critical issue for our Finance team ...
ThanksFound it - for US company Code, I went into the additional data of OBY6 and scrolled to the "Next Page". The namTax number USA (TIN) can be discovered, in the hidden pages of SAP
-
How to show the witholding tax name instead of the code in PLD
Hi Guys,
Is it possible to show the witholding tax name instead of the witholding tax code in the summary or end of report in the PLD(AR Invoice)?
Thanks.
EricHi Eric
I have tried to get it directly from the table: Witholding Tax, field: WTaxName; but there's no way to relate that with the A/R Invoice document so it shows me a wrong WT Name.
As this tables is not directly exposed/related to the document the best way is try to create a Formatted Search in order to get the description you want. Please note the WT is get from a table and if you have more than 1 type of WT it may not work in a End of Report as it does not have the capacity as repetitive area to read multiple lines.
Paulo Calado
SAP Business One Forums Team
Maybe you are looking for
-
EBook file protected error on Cocoon reader
Hi, I hope someone here can help with a persistent problem! My wife and I both have Cocoon eBook readers (model BK7021) and have joined our local library. We have both created Adobe IDs and have successfully downloaded several books form the library
-
Hi Gurus, I have a list of questions regarding the Implementation of Supplier Self Registration scenario in SRM 7.0 using ROS component 1) Is it possible the implementation of ROS without SUS? If yes, is it mandatory the utilization of XI? If yes
-
Exposé forgetting settings on MacBook Pro
My MacBook Pro keeps forgetting my settings for expose (the default settings, F11 -> desktop F12 -> dashboard). I'll set them and after a while, I'll go back to the system preferences and it will show nothing set for the expose keys. I'm guessing thi
-
Adobe Reader stops working when trying to print
When I try to print something from Adobe Reader 9, I get a message saying that Adobe has stopped working. I un-installed the program, downloaded and re-installed it, but still get the same message. I am using a Medion PC running Vista, with 4GB memor
-
Hi there. So, I have the full version of photoshop cc on Mac (latest one) and I have recently been facing a problem which I think is a glitch. Whenever I start a new project, the canvas instead of being full white/transparent, it has some sections co