Withholding tax provision on Po's at year End

Hi Experts
TDS has been deducted at the time of making provision on Po's at the year end but actual invoice receipt after payment of TDS in the next year , how the system will take care of TDS on differential amount , and what will happened if TDS has been deducted on provision entry and period has been closed but invoice is received before TDS deposited and corrective entry for differential amount is made in additional period.
On processing of those PO's invoices system will issue any msg that TDS on Provision is already deducted/deposited or not
I have made below config -
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Withholding Tax --> Extended Withholding Tax --> Posting --> India --> Provisions for Taxes on Services Received.
but while doing t_code j1inpr a error msg is coming-
Maintain Accounting configuration for W.Tax code 1000
please help
Regards
Kuldeep Dubey

Hi Kuldeep,
For this issue we were doing the invoices in current month which is pertaining to last year and make it the manual jv provision in local books and reverse in current month first. while updaing the challans we are excluding the previous invoices and posted seperate challan. certificates are issuing manually for old invoices while taking the current year certificates we are going to excluding the challan numbers in J1INCERT.

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Withholding Tax accumulation on monthly and per year basis

Hi,
one of client's requirement is they need to deduct TDS when the amount reaches 50,000 per month or 500,000 per month. In standard we can only give one accumulation type in withholding tax type definition, either per month or per year and also in min base amount there is only one field.
Is there any user exit available for this??
Can anyone please help me solve this issue.
Thanks & Regards,
Jyoti

HI Jyothi,
above funtionality is not possible is Standard SAP.
Only one Accumulation is possible.
As per my knowledge there is no user-exit also.
Reg
Madhu M

Withholding Tax (TDS) on provisions

Dear all,
Can you please let me know the procedure for reversing the TDS on provisions which is based on the provisions outstanding as on the year end.
We are able to achieve the dedution of TDS on provisions through the T-Code of J1INPR.
Afterwards, we normally book the vendors bill and deduct TDS on the same.
However as per the standard method we should run J1INUT to reverse the TDS payable which is credited at the time of booking the invoice.
But when we run the J1INUT in test run, system is giving the correct reference of the original entry of TDS on provision. But when we remove the tick of test run and then run J1INUT, system is giving the error of select the valid function.
Can you please guide how to handle such situation.
Regards
Dhirav Shah

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.
Now click on WH tax tab,which is showing everything correct. but question is how to clear Rs 80 and not assigned field make Zero.Which is our requirement. If not assigned become zero then issue resolved.
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:
Hope you understand my problem,if you run this scenario then you would have more clarity however I covered all process.
Regards,
Prasad

Withholding Taxes

HI SAP GURUS,
There is a issue with my client where they want to use one withholding tax code for full exemption and use the same for partial exemption. For example: They are using "SA" which is a withholding tax code for payment. It is for 7%. They use this tax code for most of the vendors but there are some vendors who send the exemption letter only at the beginning of the year.For those vendors system has to calcualate 3% withholding tax and 1500$ as withholding base exemption amount. When they send the exemption letter then the end user enter the exemption number, exemption rate and exemption reason in vendor master data. (In the withholding tax TAB in xk02).
Then the end user enters invoice and make a payment, system is calcualting tax on total invoice. for ex: 5000$ invoice for serives when they make a payment through f110 for that vendor system is showing 4850$ a payable but not as 4895 as payable amount( 5000-1500,withholding base exemption amount i.e., 3500*3%=105).
So due to that error i have created two withholding tax types for payment types(i.e., pa, pb) and assigned different withholding tax code(i.e., pa=sa and pb=sb) to each tax type and assigned two different withholding tax types to vendor. so I have create SA for 7% and SB for 3%(with1500$ as base exemption amount). In the beginning of the year i am keeping SB tax code as liable and end of the year SA as liable. What I would like know is will it be OK if i assign two withholding tax to vendors and keep one liable and other not liable and change them simultaneously as per end user requirments.
your help will be truely appreciated
regards
Pra

Hi,
I don't know whether this will be helpful, but if you keep both the tax codes as liable then the users can chose which tax code is applicable at the time of entry of the invoice. This will stop you from changing vendor master data too often but on the other hand will give more work for the users.
Users will have to remove the tax code that is not relevent for that perticular payment.
Also, you can give the base amount for the tax at the invoice, so you also can use only one tax code and get the users to enter the tax relevent amount in the base amount field.
Hope that Helped.
\Madhu

Error in withholding tax certificate numbering - message FZ 379

Hi all,
While executing a payment run in F110, a number of vendors are paid and then the payment run is terminated. Opening the log shows the above mentioned error messages for our company code 0011.
Opening the long text also reveals the message number FZ 379 but no further details are given. No OSS notes can be found either under this message number.
This error occurs in a Thai client in which withholding tax is successfully active for 4 years already, so the system behaviour we now have seems "sudden". I mean it is not that we are in a start up phase with teething problems but this happens in a stable production environment.
Customising was done a long time ago and we are unsure where to start looking for the problem based on this little error information. Can anyone help? Thanks a lot in advance.

Hi Madhu,
Another consideration please:
In RFIDYYWT, would you expect option "Activate numbering" to be activated or not?
Because at the moment, they have not maintained any number range objects for option "Number range".
My fear is that their current set up, may make use of the WHT numbering, perhaps triggered by the UNchecked box "No cert. numbering" of the withholding tax type. So if I would activate that checkbox, maybe the certificate numbers are no longer generated and maybe it screws up their withholding tax reporting with RFIDYYWT.
Hope you can comment on this as well. I'm considering to apply the settings as you suggested, then let them carry out a "full incoming invoice to payment and reporting" process in their quality system, to see if there are no unwanted side effects. And then transport it to production, to see if that resolves the stuck payment proposal.
Thanks
Rene

Withholding tax and Gross amount determination

Dear all
First of all, I would like to underline that before to post in this forum I have read all the documentation (official and not official) related to the Withholding Tax configuration in SAP, but in the end I have some doubts and so I kindly ask you cooperation to better understand the logical of the system.
In our country (ITLAY) the withholding tax (WTH tax) must be withheld at the payment invoice to the vendor, so our system should automatically calculate and posts the amount to the right tax account; my question is: which setting we have to use in order to have the right calculation of the base amount?
When you enter the invoice, the system determines the base amount for withholding tax and stores it in the document (INVOICE ENTRY SIDE). You can also enter the base amount directly. When the invoice is paid, the tax amount is calculated from the base amount and your specifications for the tax code. If the tax amount is to be paid to the tax authorities, the system automatically posts the amount to the tax account. The system reduces the payment amount to the vendor by the withholding tax to be paid (INVOICE PAYMENT SIDE).
At the Invoice Entry SIDE when entering documents, if the withholding tax is to be calculated at the time payment is made, only the base amount is calculated when the invoice is posted, this is what we are looking for, so my question is:
How does the system calculate the base amount of WTH tax?
Maybe an example could be better to explain our request:
Invoice received from a Tax adviser that is liable to Withholding tax.
1.     Invoice Total Amount                                                  1372
2.     Fees (Tax Base amount and WHT Tax base amount)                         1000
3.     Specific Italian Contribution     (Tax Base amount and NO WHT Tax base amount)          20
4.     Social Security Contribution     (Tax Base amount and WHT Tax base amount)          40
5.     Expenses reimbursement (NO Tax Base amount and NO WHT Tax base amount)          100
6.     VAT Basis (point 2 + 3 + 4)                                             1060
7.     VAT Amount (20%)                                                  212
8.     Withholding Tax Basis (point 2 + 4)                                        1040
9.     Withholding Tax Amount (20%)                                        208
Is it possible to manage this flow under the Invoice Verification FLOW? It means:
1.     Issue a Purchase Order to the TAX consultant
2.     post the GR for services
3.     post the IR, in this step the System should calculate the WTH base amount 1040
4.     post the payment and the WTH TAX
Accounting flow is:
Point 2) post the GR for services
         Credit      Balance Sheet GRIR services account                                   -1040
         Debit      P&L Account for services                                             1040
Point 3) post the IR
        Credit      Vendor Account                                                   -1372
        Debit      Balance Sheet GRIR services account                                    1040
                       WTH TAX BASE AMOUNT
        Debit      P&L Account Expenses reimbursement                                   100
                        NO TAX BASE AMOUNT AND NO WHT TAX BASE AMOUNT
        Debit      P&L Account Specific Italian Contribution                                   20
                        TAX BASE AMOUNT AND NO WHT TAX BASE AMOUNT
       Debit     Balance Sheet Tax Account                                             212
Point 4) post payment to the vendor
      Debit      Vendor Account                                                   1372
      Credit      Balance Sheet WTH TAX ACCOUNT                                   -208
     Credit      Balance Sheet Bank Account                                             -1164
I have just one doubt: for the calculation of the WTH TAX base amount the system consider the amount/value of the GR, so in this case 1040 or the system will take in consideration all the item for the VAT TAX BASE AMOUNT, so in this case 1060?
I am asking this because I found on the SAP documentation, when it explain the Withholding Tax Type Calculation Setting:
Gross amount - The withholding tax base amount equals the line item gross amount.
Tax amount - The withholding tax base amount equals the tax amount of the line item.
I know my request is not so clear, and I have to apologize with you because it is very long, but please someone can help me
Regards
Marco

thanks for all folks

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.

Withholding Tax not picking for the current Fiscal year 2014

Dear Gurus,
Withholding tax assigned to the vendor is getting picked up for the fiscal year 2013 but when the same vendor is invoiced for year 2014 with the same WHT tax code we could see that there is no tax line getting generated against the Vendor. All the configurations related to WHT are verified. As far as i Know we will not maintain any end date for WHT tax code. request yout to advance.
Thanks in advance.
Thanks & Regards
Srikanth

hi,
Please check below mentioned Path - and check date from & to given period
SPRO- Financial Accounting (New) - Financial Accounting Global Settings (New) -Withholding Tax -Extended Withholding Tax - Company Code -Assign Withholding Tax Types to Company Codes
select WHT type against Company code -
W/tax obligated frm 01.04.2010 Oblig.to w/tax until 31.12.2999
and check vendor master data -
Thanking you
Regards
Mahesh

J1INPR - Withholding Tax on Provision

hi all
i am trying to post some values throu J1INPR, its not processing any data.
the configuration is complete
can anybody help me to clear this issue with all its option in step by step
regards
sallu c.mathew

Good morning.
This folder has been activated and the Withholding Tax have been inserted.
The problem is in receipt of compensation value without taxes.
Thanks.

Unable to Change Withholding Tax Base Amount while creating Service AP Invoice through DI API?

Dear All,
I am trying to create Service AP Invoice through DI API.
If I post the document without changing SAPPurchaseInvoice.WithholdingTaxData.TaxableAmount the dount ocument is created in SAP without any problem.
But if I change amount in above field then DI API throws error Unbalanced Transaction.
If I post same document in SAP with changed base amount it got posted in SAP without any Issue.
Where I am doing wrong?
please guide.
Using:
SAP B1 version 9 Patch Level 11
Location : India.
Thanks.

Hi ,
maybe you can find solution to these note 1812344
1846344 - Overview Note for SAP Business One 8.82 PL12
Symptom
This SAP Note contains collective information related to upgrades to SAP Business One 8.82 Patch Level 12 (B1 8.82 PL12) from previous SAP Business One releases.
In order to receive information about delivered patches via email or RSS, please use the upper right subscription options on http://service.sap.com/~sapidp/011000358700001458732008E
Solution
Patch installation options:
SAP Business One 8.82 PL12 can be installed directly on previous patches of SAP Business One 8.82
You can upgrade your SAP Business One to 8.82PL12 from all patches of the following versions:8.81; 8.8; 2007 A SP01; 2007 A SP00; 2007 B SP00; 2005 A SP01; 2005 B
Patch content:
SAP Business One 8.82 PL12 includes all corrections from previous patches for releases 8.82, 8.81, 8.8, 2007, and 2005.
For details about the contained corrections, please see the SAP Notes listed in the References section.
Notes: SAP Business One 8.82 PL12 contains B1if version 1.17.5
Patch download:
Open http://service.sap.com/sbo-swcenter -> SAP Business One Products -> Updates -> SAP Business One 8.8 -> SAP BUSINESS ONE 8.82 -> Comprised Software Component Versions -> SAP BUSINESS ONE 8.82 -> Win32 -> Downloads tab
Header Data
Released On
02.05.2013 02:34:18
Release Status
Released for Customer
Component
SBO-BC-UPG Upgrade
Priority
Recommendations/additional info
Category
Upgrade information
References
This document refers to:
SAP Business One Notes
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How to post a PARK document with Withholding Tax

Hi All,
I have parked a document using FB60.Vendor is subject to withholding tax.Now,when i am posting the document through FBV0,the error message displayed is :
"Field BSEG-SECCO does not exist in the screen SAPMF05A 0303".
The error message says that Section Code (Withholding Tax) is missing for Special G/L Indicator Line Item.I dont have provision to enter section code in the screen.
My entries are :
29J Vendor a/c Dr.
50 XYZ a/c
If i using F-02 and not parking ;then it is getting posted.
Note: Line Item is a special G/L Indicator
Please advise how to post a park document using FBV0 with special g/L Indicator and vendor is subject to withholding tax.

Hi Parag,
Section code field doesnot exist in the special G/L indicator line item of the document.So,i cannot enter it.
But,when posting the parked document ,it is asking for Section Code.
The error message displayed is:
"Field BSEG-SECCO. does not exist in the screen SAPMF05A 0303"

Delete Withholding tax info in cleared document

We recently made the change from classic to extended withholding tax. I've been able to successfully run RFWT0010 and RFWT0020 when the withholding tax in a vendor master record was changed. However, we have several vendors the were marked as 1099 vendors (non employee compensation) that really are not subject to withholding tax. I've removed the withholding tax data in the vendor master record, but the documents still contain the withholding tax information, even after I've run both RFWT0010 and RFWT0020. I've opened up those fields to be changed in document settings already. Is it not possible to delete or remove withholding tax from the document unless I do it manually through FB02?

We had the same problem. There is no SAP delivered tool like RFWT0010 and RFWT0020 that will work to delete withholding tax data from cleared documents. However you can create a CATT script for transaction FB09 which will work to do this. I used SE16n to gather the needed information which is document number, Line item number and fiscal year. I uploaded the relevant vendor numbers into the query screen for table WITH_ITEM
I chose the relevant fiscal years, tax type FE, tax code not equal to blank, base amount not equal to zero, i chose to display all those plus line item number document number, vendor number, We only have one company code so that was not relevant for me.
I then copied that list into my Catt global variant spreadsheet and away I went. I would worn you about reversal documents you might want to exclude those. I would create a Variant for these selections as well
Good luck
Also if it doesn't really matter what the historical line items say. I had the users simply exclude those vendors from 1099 selection criteria

Changing Withholding tax base amount- 1099 payment

The scenario is:
Classic withholding tax functionality to be used for first time, the configuration was done last year.
1099 needs to be printed with all payments made out to the vendor.
There were payments made out to the Vendor in year 2011. There are some payments that show as WT exempt amount in RC and other payments are displayed as WT base amount in RC while running RFIDYYWT or 1099 print out report.
I used RFWT0020 program to regenerate the WT and Change to source tax code. It just updates the tax code on the payment document but is not changing the payment document amount from WT exempt to WTax base.
So the 1099 printout is not showing the total payments made, it is excluding WT exempt amount in total.
Any suggestions?
Thanks
Edited by: Gary_S321 on Jan 11, 2012 10:30 PM

Rebecca,
You need to update the WTax base amount field on all the payment documents that are blank.
For that just go to Vendor line item report FBL1n and run it for all the 1099 vendors. Change the layput to add WT base amount and WT Code in the report output. Filter the documennt type with payment doc types ZP and KZ and WTax base amount zero.
Extract these transactions into excel and then write LSMW to mass update these tax base amount field.
To update only Tax code on these transaction you can use RFWT0020 program.
Hope this helps.
Thanks

Vendor's withholding tax code changing

Hi
Can we change the vendor's withholding tax code in mid year......
regards

Dear KS_sap1,
Yes, You can change the WT code during the year but then You have to run the report RFWT0010 for the open items in order to be able to pay them.
I hope this can help You.
Mauri
ps please read the report RFWT0010 documentation by se38 and run it first in "test" to check what the System will do in each document

US Withholding tax report for 1099M missing amount

HI all,
When i run the 1099M Listing using S_ALR_87012143 for year 2009 with clearing date of 1/1/09 to 12/31/09 for one vendor,
it shows the cleared and open items TOTAL correctly. This includes one document with posting date of 12/31/2008 and the clearing date is 1/6/2009. The rest of the included documents are with 2009 posting dates and clearing dates.
However, when i run the US: WIthholding tax report for 1099M for this vendor for 2009, although the clearing date is 1/1/09 to 12/31/09, it did not show the correct total. It is missing the amount for one document with posting date of 12/31/2008 and clearing date of 1/6/2009. Is there anyway i could get this missing amount to be included for the year 2009 ?
The tax report is using: S_PL0_09000314 ( RFW1099M ).
Please advise.
thanks
Joyce

no replies

Withholding tax provision on Po's at year End

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