Withholding tax adjustment by debiting taxes

Hi ,
When we make a payment (3 rd entry i mention below) through F110 withholding tax deducted at the time of advance payment is getting debited along with payment posting. Can anyone let me know how this is functioning? We are using ECC 6
For example:
Advance payment: (credit tax)
1 st entry) Vendor a/c dr 1000
To, Bank a/c 900
To, TDS a/c 50
To Cess a/c 50.
2 nd entry)Invoice posting:
Gr/Ir a/c Dr 2000
To vendor 1800
To, TDS a/c 100
To Cess a/c 100
3 rd entry)Payment posting through F110.( tax debited here for the same amount which was credit at advance)
Vendor a/c Dr 1800
TDS a/c Dr 50
Cess a/c Dr 50
To Vendor a/c 1000
To bank a/c 900
I jsut wanted to know how taxes are debited in the 3rd entry.where do we do this settings.
TDS a/c Dr 50
Cess a/c Dr 50

Your solution will be highly appreciated.
Thank you.

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Adjust amounts for extended withholding tax

Dear All,
Ii have entered invoice for a vendor A. for amount 100 with extended withholding code for 10% tax calculation. That mean system will automatically deduct tax at the time of payment. The entry will be
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Vendor        100 with Withholding codes
this entry is done for recognition of Expense
Payment entry
Vendor      100
   Bank          90
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The problem i faced is when i post another invoice for the same vendor/amount and manually change the withholding tax amount at document level.
Example
First invoice 100 withholding tax amount 10 automatically system calculates
Second invoice 100 withholding tax amount 8 manually changed tax amount at document level
Third invoice 100 withholding tax amount 7 manually changed tax amount at document level
when i manually paid the first invoice system calculate tax for amount 10
when i manually paid the Second invoice system calculate tax for amount 8
when i manually paid the Third invoice system calculate tax for amount 15. Here system added the difference which were manually adjusted by user at document level.
Is there any way that system do not adjust the previous amounts????? At the time of processing third invoice payment.

Dear,
if You put manually 7 into the WT amount for the third invoice, the Standard System shouln't overwrite such an amount during the payment posting. So I don't understand how the System could calculate 15. Did You change something in the Standard?
Mauri

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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:
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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%)
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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
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Please revert for any clarification.
Thanks and Regards,
Anit

Withholding tax amount exceeds the customer/vendor line item amount

Hi experts
I am having one problem please help me
My user created one down payment, entry is like this
Vendor Dr-193914
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system is throwing that error.
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Message no. 7Q321
I checked invoice booked correctly & TDS also dedcuted properly why system is throwing that error message
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Hi Madhu
thanks a lot for instant reply
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Dear Shreenath,
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R12.1.3 AP Module Rounding Difference during Withholding Tax Calculation

Problem Summary:
Figures does not “round” While we make a payment for multiple withholding tax invoices in one go.
For eg
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procedure Ap_Special_Rounding (P_Checkrun_Name IN varchar2)
is
--l_org_id NUMBER(15); -- BUG 7232736
BEGIN
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-- select org_id into l_org_id
-- from ap_checks_all
-- where checkrun_id = P_Checkrun_Name;
-- IMPORTANT: This section is reserved for Globalization features.
-- Please do not modify code here.
-- BUG 7232736 replaced sys_context with g_zz_shared_pkg.get_product/reverted to Orginal code.
IF sys_context('JG','JGZZ_PRODUCT_CODE') is not null THEN
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null;
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Please Help…………………………………………!

Hi.
As far as i concern your requirement should have a different explanation. Withholding Tax concerns retaining an amount to pay to the Tax Authority. At least this is the general concept, so the WT account must allways be credited, never debited.
Octavio

Withholding Tax(TDS) on Advance(F-48) and On Final Payment-F-53

Hi Expert,
I am facing an issue related to TDS, on vendor advance. Its little different scenario, However rule is whichever is early.
Requirement is like this, generally they deduct TDS on down payment and in case of final Payment. No TDS at the time of invoice booking.
For example- Down payment made to Contractor Rs 200 @ 2%, Total invoice value was Rs 1000. TDS to be deducted on advance will be Rs 4. Invoice booked for Rs 1000.
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No centre invoice
Central inv.prop
Regards,
K.Prasad

Dear Mukthar,
I tried but its not working.During Payment system is adjusting TDS automatically which we paid on Advance but during payment,TDS on final payment is not clearing and not assigned amount is not getting zero.
Step 1: Advance Amount Rs 1000@ 2%
Step 2:Invoice Booked of Rs 5000,no TDS during Invoice booking but payment withholding Tax code was ticked during Invoice booking,as you suggested.
Note:Total Invoice value is Rs 5000 out of which Rs 1000 made as an advance.Please see-step 1.
Step 3:F-54 advance clearing against above Invoice
Step 4: Payment of Rs.4000 subject to TDS
Here is problem,system is calculating TDS on Rs 4000@2% which is correct but not assigned amount is not getting zero.
How to clear this?
Once you click on INR net 4,900 blue line,then amount entered gets 5000.
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Hope you understand my problem.
If i click on difference posting and simulate then -Not assigned tab gets Zero but it create one open item with Document types-KZ, which again is a issue to clear and you cannot clear.And if you simulate it then system is reversing TDS on advance and final total TDS is crediting this time.Till here no issue. Here is simulation entry-
This you are able to get only once you click on difference posting but in FBL1N with document type KZ Rs 80 would be appear and that you cannot clear anyway.
Vendor Master detail:
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Prasad

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yesap.fico

Any inputs?

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Hi Gurus,
I am having an issue with Cross-company code transaction while posting expense with 2 different company codes.
In the 2 company codes, one company code is setup for Withholding tax and other was not set.
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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.
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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.
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Cr          202020(Bank)           5065
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Bapu

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Hi All,
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Hi,
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Hi,
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I hope reqs. beeing understandable.
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mr.

Hi
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