Sap treasury withholding tax

Hi,
When i am trying to create TM01 - fixed deposit creation (nominal interest) - withholding tax is generated
When doing compound interest creation - no withholding tax is not generated?
What is the reason?
Any config changes need ?
TDS entries:
On Maturity or End of Financial Year, Whichever comes earlier.
Maturity
Bank Account                                                 DR
TDS on Interest/Advance Tax & Interest       DR
FDR Account                                                 CR
Interest receivables Account               CR

Krishna, check configuration here: SPRO -> Financial Supply Chain Management -> Treasury and Risk Management -> Transaction Manager -> Money Market -> Transaction Management -> Flow Types -> Derived Flows -> ...
Detailed description here: SAP Treasury - How to create taxes for Issuer
P.S. When you use compound interest - the original flow is being changed from 1200 Nominal interest to 1150 Interest capitalization. So, here tr. SM34 -> VC_TR_DERFLOWS_5 you have to add new original flow + your tax flow.

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SAP charges Withholding Tax

Hi Sapers
We have to process intercompany payment. The invoices are not WHT related, the settings are correct but SAP
charges WHT when we run a payment proposal. The material groups that these invoices are posted for are not relevant as of WHT. The Materials are correctly configured and this problem only happens with the Intercompany invoices. This Vendor has all the WHT settings updated in the system

Hi,
I understood your problem. You said already done the all settings in WHT.
1.After completed the configuration of WHT you can select the WHT button in related GL master data in Raw material and update the information in related Vendor master data also.
2. Once you run the proposal you can select the tax calculation button.
Please send your problem clearly. If you want the calculation of WHT or with out calculattion.

Withholding tax not captured for a single Vendor during Invoice

Dear SAP Gurus,
Withholding tax is not captured during MIRO for a particular Vendor. The Vendor Master has been assigned with the relative tax codes. Program RFWT0010 has been run. Tax Types have been
checked. Error message was changed to Warning in OBA5. Message 7Q321 Withholding tax
amount exceeds amount in Vendor line item 001. Relative SAP notes referred. Withholding tax
type at the time of payment Central Invoice & I ppmt checked. OBC4 reconciliation account
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Thanks and regards,
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Hi,
Check with the minimum amount of the withholding tax code.
Check accumulation activated or not.
If you are using portary dependencies check the base withholding tax code given.
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Still problem continue revert back.
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Withholding tax amount validation

Hi,
I want to made validation for withholding tax when I post invoice at the Complete document level or at row level. I try using standard validation but at user exit level I havenu2019t WITH_ITEM . Now if user insert wrong value there are not control. Which is the right way to control base amount and tax amount? At customizing level or at registration validation?
Can somebody help me.
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Fiorenzo Angeletti

Hi,
I have make customizing for advanced withholding tax and we use withholding tax function in posting invoice and in payment vendor. My problem is in posting invoice (es F-02). When I insert vendor row, Sap open withholding tax windows if vendor master record have withholding tax information. In this windows the base amount and W/T amount in empty and user need to fill value. My question is:
1)     Is possible to fill W/T base amount and W/T amount automatically?
2)     If I change base amount is possible to calculate W/T amount automatically?
3)     If I insert W/T base amount and W/T amount manually is it possible to check if W/T amount is correct for the W/T base amount?
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XI and withholding tax - urgent !

Hi,
The user wants to know how XI capabilities of SAP for Withholding Tax works?
Can somebody guide on this? If any documentation please forward.
Thanks and Regards
Karpagam

Dear Karpagam,
SAP XI is just an integration tool, it doesn't have any functionality. You would need map the fields accordingly to achieve your functionality.
You would need to design correct mapping document. Are you planning to use RFC Adapter, IDOC Adapter, or Proxies for your scenario?
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Withholding tax for bank interests

Hi, Experts,
I'm facing the problem that the bank doesn't pay the total interests, they will deduct the withholding tax amount.
I've review the documents for SAP extended withholding tax function, found that it is only available for vendors and customers...
Does anyone know how to realize it in the SAP?
Or just have to manually record it through manual entry?
This happens for banks in Spain.
Many thanks.
Best regards,
Kelvin

Hi,
You have to create a customer a/c with bank name and maintain TDS codes in the master data. Pass below entry
Customer- A/c Dr
TDS Receivable A/c Dr
Int.recd A/c
After that, the will credit the int.in our books.
Bank A/c Dr
Customer A/c Cr
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Mukthar

VAT and Withholding tax setup for Philippine

Hi ,
Anyone is familiar with the VAT and Withholding tax setup for Philippine.
What is the VAT and WHT config in order to fuilfil the following example.
Appreciate if someone is able to provide me some help on this. Thank you.
Invoice Amount of P 1,120.00 gross of VAT
Services Sales to Private
ENTRY TO RECORD REVENUE          Debit     Credit
Accounts Receivable                                1,120.00
     Vat Consultancy Set-Up                               120.00
     Revenue                                                 1,000.00
ENTRY UPON COLLECTION
Cash in Bank                                                  1,100.00
Taxes Payable - BIR ITR                                 20.00
Vat Consultancy Set-up                               120.00
     VAT Consultancy Payable                               120.00
     Accounts Receivable                            1,120.00

Additional Information
Value Added Tax Reporting:
Advance Return for Tax on Sales/Purchases (VAT Reporting)
Use
In the Philippines, companies are required to submit Bureau of Internal Revenue (BIR) forms 2550M for the monthly (value-added tax) report and 2550Q for the quarterly VAT report. However, these forms also include information not provided by the SAP System, such as advance payments. Using the Advance Return for Tax on Sales and Purchases report, you can print the relevant VAT data and enter it in forms 2550M and 2550Q.
Integration
The report is based on the SAP List Viewer (ALV), which enables you to define your own display variants, according to the BIR requirements listed below.
Activities
To access the report, from the SAP Easy Access screen, choose Accounting --> Financial Accounting --> General Ledger --> Reporting --> Tax Reports --> General --> Advance Return for Tax on Sales/Purchases --> Advance Return for Tax on Sales/Purchases.
You need to make the following settings, in addition to your specific selection criteria:
Under                         Set the following indicator(s)
Output control                         Read address data
Output lists                         Output tax: Line items
                                            Input tax: Line items
You need to define your SAP List Viewer display variant to include the following data on the VAT report, as required by the BIR:
u2022     Reporting company's name and TIN
u2022     Vendor or customer name
u2022     Vendor or customer TIN
u2022     Vendor or customer address
u2022     Document date
u2022     Document number
u2022     Reference number
u2022     Invoice amount
u2022     VAT amount
Withholding tax reports
Generic Withholding Tax Reporting
Use
You use the Generic Withholding Tax Reporting tool to generate withholding tax data for withholding tax reports submitted to the Philippine Bureau of Internal Revenue (BIR) and vendor certificates, as follows:
u2022     BIR form 1601 u2013 Monthly Remittance Return of Income Taxes Withheld
u2022     BIR form 2307 u2013 Certificate of Creditable Tax Withheld at Source
u2022     BIR form 1604 u2013 Annual Information Return of Income Tax Withheld on Compensation, Expanded and Final Withholding Taxes
Features
SAP delivers standard report variants and Smart Forms for each of the reports and the certificate, which are listed below.
SAP also provides a display variant for the output lists, 1SAP, which you can specify under Output control and lists in the Display variant column.
BIR 1601
SAP provides withholding tax data for page 3 of the form. The form comprises three sections u2013 expanded withholding tax, final tax based on the regular rate, and final tax based on treaty rates. Within each of these sections, the data is summarized according to the nature of the income payment (ATC code). For more information, see Withholding Tax Code.
The predefined report variant for BIR 1601 is SAP&PH_1601, and the Smart Form is IDWTCERT_PH_1601.
BIR 2307
The predefined report variant for BIR 2307 is SAP&PH_2307, and the Smart Form is IDWTCERT_PH_2307.
BIR 1604
You use BIR form 1604 to report expanded and final withholding tax for all nonemployee transactions.
SAP provides the three required sections of form 1604: alphalists 3, 4 and 5 (schedules):
Section of BIR 1604 -DESCRIPTION - Predefined report variant - Smart Form
Alphalist 3     Payables subject to expanded withholding tax     SAP&PH_1604-3     IDWTCERT_PH_1604_SCHEDULE3
Alphalist 4     Payees subject to final withholding tax     SAP&PH_1604-4     IDWTCERT_PH_1604_SCHEDULE4
Alphalist 5     Other payees whose income payments are exempt from withholding tax issued but subject to income tax     SAP&PH_1604_5     IDWTCERT_PH_1604_SCHEDULE5
Prerequisites
For each withholding tax report, note the required Customizing settings for the corresponding output group.
Activities
To access the report, from the SAP Easy Access screen, choose Accounting --> Financial Accounting -->Accounts Receivable --> Withholding Tax --> Generic Withholding Tax Reporting.
The Generic Withholding Tax Report has several options for reporting.
The report can be run without the Output Group field populated, or it can be run with one of the PH1 to PH5 options as it relates to the reporting forms/requirements
Hope this piece of information is helpful to you.

Explain withholding tax partial pament configuration steps in sap

Hi,
This ramu .explain withholding tax partial pament configuration steps in sap .

Hi,
Please follow the steps for tds-partial payments
In the following activities you make the settings for withholding tax. (SPRO-F.AC(NEW)-F.AC.GLBSETTINGS-WITHHOLDINGTAX-EXTENDED WITHOLDING TAX.
The SAP R/3 System 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
Enhancements in withholding tax calculation
Withholding tax calculation during invoice entry and during payment
Regards
Sridharshetty

SAP Treasury Management-How to Config Tax codes for Business Partner

Hi SAP Gurus,
Please suggest me how to configure specific Tax Code and Tax relevant data for Business Partner in SAP Treasury Management while posting transactions with reference to any specific GL A/c. Kindly help me .
Thanks and advance
Regards
Shivan

Hi Appalas,
Check this link
Re: Linking of default taxes and discounts to BP
Tax Code
/people/arshdeep.singh/blog/2008/10/20/defining-a-new-tax-code-in-sap-business-one-2005-b-and-2007-b
Regards
Jambulingam.P
Edited by: Jambulingam P on Jun 22, 2009 12:39 PM
Edited by: Jambulingam P on Jun 22, 2009 1:20 PM
Edited by: Jambulingam P on Jun 22, 2009 1:21 PM

Where to customize the company's withholding tax ID in SAP

Hello,
I would like to get the 1099 report for US tax withholding to be displayed with the company tax ID in the header.
When executing transaction for Generic tax withholding reporting, the system can display the company tax ID in the header (it is missing today) and the only way I have found to enter this information is in the extended withholding tax menu (Withholding tax > Extended withholding tax > Company code > Assign withholding tax types to company codes) which I do not want to use, as I am not using any withholding tax types.
Does anyone know if the information can be customized somewhere else?
Best regards,
Ronan

Hi,
Go to OBY6, select your company code.
On next screen, go to "Additional Details" button
and there you can enter the withholding tax ID in the field "TDS No."
Regards<
SDNer

Withholding tax master data report changes in SAP FI

Hi All,
In our client according to new audit requirements improvements have to be done for the withholding tax report. According to the the requirements changes only functionality has to be added to the main selection screen of the withholding tax master data report.
Changes only functionality has to be added to the selection screen of the report, the report has to display changes made to the tax master data with in a range of period, this was achieved easily by making program changes. Only issue now is when we do it in development client its showing us properly but when we do it in production it is not working because when ever we do any configuration changes we do it in the development client and transport it to production client so the changes done to any configuration with respect to WHT are not recorded in the production environment as they are transported from development client.
So, we are unable to achieve this in production client, please help me out with this issue.
Tthanks in advance

hi
i need field
withholding tax exemption no, exemption from date, todate, Exemption reason,
as a master data it is saved in vendor master data > withholding tax accounting
but i need where it is saved in transaction data.
thanks

Withholding Tax Calculation Error for Vendor Down Payment Clearing:Oct '09

Hi,
We are trying to incorporate the new Withholding Tax Structure w.e.f. 01-Oct-09.
There were 3 scenarios possible:
a. Invoice = Down Payment
b. Invoice < Down Payment
c. Invoice > Down Payment
While 1 & 2 were taken care of effectively, the third scenario did not work as expected. The scenario is as follows:
1. Down Payment (Date : 30/09/09)
Amt : Rs. 40000/-;
Withholding Tax @ 15% : Rs. 6000/- (40000 * 15%)
Surcharge @ 10% : Rs. 600/- (6000 * 10%)
Edu Cess @ 2% : Rs. 132 (Rs. 6600*2%)
Higher Edu Cess @ 1% : Rs. 66 (Rs. 6600*2%)
2. Invoice (Date : 02/09/09) - As per new TDS Rates
Amt : Rs. 50000/-
Withholding Tax @ 10% : Rs. 5000/- (50000 * 10%)
Surcharge : NIL
Edu Cess : NIL
Higher Edu Cess : NIL
3. DPC (Date : 02/09/09) - Reversal of TDS calculated in Down Payment (Step 1) above.
Issue:
While making J1INCHLN, amount is adjusted as Rs. -1000/- (hence zero) not payable.
Also, the Surcharge, Edu Cess & Higher Edu Cess are also getting reversed in DPC.
As suggested by SAP Note No. 1372734 - Handling of downpayment clearing scenarios after budget '09, the scenario does not seem to work.
Actual payable should be worked out as under:
Invoice : Rs. 50,000/-
DP : Rs. 40,000/-
Bal : Rs. 10,000/-
TDS @ 10% : Rs. 1,000/-
All TDS Challans, Certificates & Returns must reflect Rs. 1000/- in the Challan.
Require assistance.
Regards,
Kapil Tilwani

Hi Kapil,
The following needs to be taken care of -
The message controls settings as the note suggests must be set as W.
When entering the details the logic is Vendor Debit amount is Tax amount + 1
The Vendor credit line, the tax code has to be assigned with the advance amount (amount for which the challan has been created) as the tax base amount and the tax amount will be the extra liability that needs to be created.
In your example -
The tax amount will be - 2000 ( the debit at the time of downpayment clearing should have been 4000 instead of 6000)
Tax base amount - 40000 (Challan for this amount has already been made at the time of downpayment made)
The vendor Debit - 2001 (2000 + 1)
The vendor credit - 1
Note - Tax amount and base amount has to be made manually in the withholding Tax tab for the credit entry.
Please revert for any clarification.
Thanks and Regards,
Anit

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

Report RFWT0010 to update withholding tax in open items

Hi gurus!
I'm facing a problem with report RFWT0010 after modifying withholding tax information in the vendor master record.
If I delete a complete line (Withholding Tax Type, W/Tax Code, Liable and so on) when I run report RFWT0010 open items are pulled and updated correctly.
However, if I have a scenario in which I only need to modify the Withholding Tax Code (leaving WIthholding Tax Type and Liable Flag like they were before) when I run report RFWT0010 no open items are pulled.
Can anyone indicate me if RFWT0010 is meant only for withholding tax type changes?? or is it a program error??
Thanks!
Federico

Withholding tax is not supported by SAP here...

Multiple vendor line items during IR with different withholding tax status

Business scenario: During IR, several vendor line items are being processed, some are stock materials, others are service materials (using material group). Only the service materials are subject to withholding tax.
Problem: Since the withholding tax type/code is maintained at the company code level of the vendor master, it is not possible to select only the service materials as subject to withholding tax.
Has anyone encountered this problem before? if yes, please advise solution adopted.
Thanks.

I think through condition type / condition record, you can reduce the amount payable to the vendor and post it to another GL account. But if you do not update the amount in the W/tax base and w/tax amount, you will not be able to use standard reports of w/tax. May be condition types can be used to do the calculation of w/tax amount and w/tax base amount. Build the logic in the interfcae of e-invoice and SAP to update W/tax fields in vendor invoice.

Sap treasury withholding tax

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