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,
1. Yes if you are not activate the EWT then withholding tax tab will not available in system.
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.
in your case forget about classic wt.
4. Once you are activate then please maintaint the tax type and tax code in vendor master
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)

Similar Messages

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

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

Error in added withholding tax code in XK02-extended withholding tax

dear all,
I've just activate extended withholding tax using invoice posting.
When I want to add withholding tax code in vendor master data XK02 it appear error that tax code I've input does not exist in table T059Z, because it read country value "ID" beside the tax code.
For example I've create tax code L1 in country ID, and add L1 in XK02, the error appear 'Entry 'ID L1' does not exist in T059Z.'
Does anyone ever experience the same error?

Hi Oscar,
i would like to know whether the company and the vendor are both in country ID.
if that is the case, just check in "Check Withholding Tax Countries" whether the country has been included.
and also assign the WHT type to your co code in"Assign Withholding Tax Types to Company Codes".
define the WHT type first and then WHT code.
this should solve your problem. if not, kindly revert.
*award points if this helps*
Regards,
CA. Karthik Narayan N S
SAP-FICO Consultant

Extended Withholding tax in VIM

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

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

Activating Extended Withholding Tax - New Company Code

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

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

Extended withholding Tax in ECC6

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

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

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

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

Extended Withholding Tax - 1099 listings

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

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

Extended Withholding Tax - Minimum Amount

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

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

Withholding tax settings(not extended withholding tax)

Hi,
I am working on withholding tax(not extended withholding tax). Previously we have one company code for that we created withholding tax and withholding tax codes. Now we are going to create another 2 new company codes. Now how to assign the withholding tax codes to the 2 new company codes.
In extended i can assign withholding tax codes to company code but in withholding tax how i can assign withholding tax codes to the 2 new company code.
Regards,
Sankar

Hi
You can assign the same w tax code to another company code also,for that you go through this:
Path: spro>financial global setting>Withholding tax> extended with holding tax
Company code  Assign with holding tax types to company codes
Path: spro>financial global setting>Withholding tax> extended with holding tax
Company code  Activate extended with holding tax
May be this information is useful to you
If you have any doubt feel free to ask
Regards
Surya

Different fiscal year for extended withholding tax

Hi All SAP Gurus,
I have configured the extended withholding tax as per the Indian requirement.But I am unable to meet the following to requirement as per client's need.Can anybody help me out please?
1) My client is following Calander year ( Jan to Dec.) for Global ledger and it is assinged to Company code Global setting.For Local reporting in India, we are using Non-leading ledger L1 and fiscal year V3 ( April to march) is assignd to it.Now the problem comes when we perform the TDS process.
a) We assigned the number range etc. for Internal challan number and TDS certificate.When we run J1INCHLN and J1INCERT, system is picking the number as per the calalnder year and not as per the April to march fiscal yearThis creates problem for the priod of next year (say jan to march 2010).Can anybody worked on such a senario. Please help me out.
b) Second requirement is client wants lower rate deduction of TDS. I really don,t know much but I wonder that how we can set lower rate deducation in SAP as it is linked to the total Invoice amount and from and to period. I could not find anything in the vendor master where we can assign period as well as total turnover amount for lower dedcution.
Please helpme out.
Thnaks in advance.

Hi, Ekta
For lower deduction of Tax you will have to do the following Config:
1.In SPRO Extended WTD --> Basic Settings --> Define Reasons for Exemption:
Reason for exemption
Indicator used to classify different types of exemption from liability
to a particular withholding tax.
Enter Text field such as Concessional Rate of Vendor Name
2.Extended WTD --> Calculation --> India --> Settings for Annual Returns --> Assign Exemption Reasons to Withholding Tax Codes:
Mantain Country, WTH Tax Type, WTH Tax, Exemption reason creatd above.
3. In the vendor Master enter the following details:
Exemtion Number - Certificate no. recd.from Income Tax dept.specifying reduced rate of TDS
Exemption % : 25
Exemption Reason: One created by you.
Exemption From Date:
Exe,ption To Date:
This should resolve part of your issue.
Thank You.

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.
Regards
Ravinagh Boni

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

Similar Messages

Maybe you are looking for