Withholding Tax Receivable at AR Receipt

Hi all,
We have a requirement to record the WHT receivable during receipt for the amount withheld by our customers.
Here's what is expected:
- Populate WHT types and codes in customer master
- At receipt, the default WHT type and code would be picked and WHT Receivable amount automatically dervied, example accounting entries would be:
Dr Bank $1100
Dr WHT Receivable $20
CR AR $1120
Any tips on how to set up the above in SAP?  Is it similar to the WHT setup for AP invoice?
Thanks.

Hi,
Generally you can use the same tax types and codes for customers as the vendor. But i would advice you to have the tax codes seperate so that when you assign accounts for posting, you can assign different GL accounts as per the tax codes.
Note: one issue i faced in using withholding taxes for customers were the differences in the tax deducted by SAP and the tax deducted by the customer. In SAP we might round it off but the customer might not do so. Then you have a problem trying to reconcile the right amount especially when the customer makes a payment against more than one invoice.
Hope this helps.
Thanks and Regards,
Anit

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    Hello,
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  • Customer Withholding Tax

    Hi Frnds,
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    Hello SAP Experts,
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    LFA1-STCD2      Employer identification number
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    Hi Rene,
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    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
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    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
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    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  
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  • Calculation of withholding tax after the certain amount

    Hello all,
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    Hana

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    Hi
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    3.     Specific Italian Contribution     (Tax Base amount and NO WHT Tax base amount)          20 €
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    5.     Expenses reimbursement (NO Tax Base amount and NO WHT Tax base amount)          100 €
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    8.     Withholding Tax Basis (point 2 + 4)                                        1040 €
    9.     Withholding Tax Amount (20%)                                        208 €
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             Debit      P&L Account for services                                             1040€
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           Debit     Balance Sheet Tax Account                                             212€
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          Credit      Balance Sheet WTH TAX ACCOUNT                                   -208€
         Credit      Balance Sheet Bank Account                                             -1164€
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    Tax amount - The withholding tax base amount equals the tax amount of the line item.
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    Regards
    Marco

    thanks for all folks

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