Withholding tax requirement

Hi,
We have a requirement of withhoilding tax from third party vendors. This is specific to philipinnes country.
Scenario is our broker is incurring some expenses on our behalf and then claiming us for reiumbursement.
So, as per local tax laws for few items, we would be required to withhold tax from the vendor i.e. third party vendor not broker. My doubt is if we create a broker as a vendor then we would not be in a position to withhold the tax as in WHT return details of third party vendor should come. BUt if we create that third party as a vendor then we are not in a position to pay our broker as we are getting bill from our broker.
Please give me a probable solution in SAP.
Regards
Anuj Agarwal

Hi
I think that you can make the third party as a vendor and the broker also as a vendor. Assign the withhold tax key in third party masters. Than clear the third party invoices by the Broker account and than settle your broker. By this you can record the actual entries done.
Hope it will work.
Thanks

Similar Messages

Withholding tax line items are not post

Hi,
I was configured all the steps for extended withholding tax up to Assign withholding tax to vendor master data
and the i am used to post an vendor invoice
given all required feild and press enrer and display the withhoding tax codes screen here also press enter button .... i entered all required field and go to simulation this posting i am getting only 2 line items
like for eg: --- Inventory Debit , Vendor Credit only
here my problem is i am not getting the all with holding tax line items
please hepl
Sree

Dear Sree,
if You defined the WT type at the payment time, the WT line items will be created at the payment time and not during the invoice posting.
Please check.
Mauri

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

Calculate Withholding taxes for VEndor Invoices using ABAP program.

Hi All,
I have to upload Vendor Invoices using FB60/Fb01 tcodes. I am able to post the Invoices using FB01/Fb60
but I have to calculate extended withholding taxes also using this program for the Invoices.
Is it possible to upload vendor Invoices and calculate withholding taxes using Program?
If yes,
Does anyone has any idea how do you calculate extended withholding taxes using any BAPI's?
I have used these two BAPI's
BAPI_ACC_DOCUMENT_POST
BAPI_acc_invoice_receipt_post
they are working fine but without withholding tax.
This is a requirement for country India.
Regards,
Sushil

Hi,
Imho, you need to get (meaning, extract into separate fields) the different supplier types from Table1 first. Your key for Table1 is the vendor no, which is also the key in Table2 (or the key for Table2 is Vendor no & Type).
For better performance, better select multiple/all required entries from Table1 instead of doing a select endselect.
Depending on the format of the vendortypes in Table1, put them in a new itab (for our purpose named Table1New where vendor no & type are the only 2 fields. For example, if the type length is fixed to 2 chars, or divided by space,... use your coding accordingly.
Next step is to select all vendor no's in Table2 which you have selected in Table1. If in Table2, the vendor no is the only key (and the all vendor types are filled in a single record), then loop check the vendor types from Table1New against the types in Table2.
If the key of Table2 is vendor no & vendor type, then do a read table for the key.
The logic in pseudo-code:
Select from Table1 into table. If you'd like to limit the selection size, add package size statement.
     extract the vendor types in to itab Table1New.
     Select the vendor & types from Table2 by using the for all entries option (better performance).
     loop at Table1New
          check in Table2:
               if the unique key is vendor no: check all fields for the vendor type from Table1New
               if the unique key combo is vendor no & type: check by using a read table.
          If not found => add entry to Table2
     endloop.
endselect Table1 (when using package size)
I guess the most difficult step is to extract the types from Table1 into separate fields, all the rest seems straight forward. Please keep in mind the itab type definitions for a better performance.
Good luck!
Best regards,
Zhou

Withholding tax fields in Vendor master is not avbl to config as sensitive

Hi,
I need to configure, fields in Withholding tax accounting as sensitive fields in Vendor Master.
Table reference for Withholding tax is LFBW.
But the fields from this table are not avbl for configuring in SPRO.
It gives an error message as: This field is not allowed.
Is there any other method to add the required fields from LFBW table to configure them as sensitive fields.
Or adding the fields as sensitive is restricted for few fields only.
Pls do the needful.
Regards,
Radha

Hi Radha,
I finally found development we did for a customer. Below you can find sampler code. You can use exit ZXF05U01.
    FIELD-SYMBOLS : <FIELD_VALUE> TYPE ANY.
    DATA : SENSITIVE_FIELD(30).
    FIELD-SYMBOLS : <FIELD_VALUE2> TYPE ANY.
    DATA : SENSITIVE_FIELD2(30).
    TABLES : T055F .
    IF LN_LFM1 NE I_LFM1.
      REFRESH KRITAB.
      SELECT * FROM T055F WHERE KOART = 'K' AND
                                FELDN LIKE 'LFM1%'
        SPLIT T055F-FELDN AT '-' INTO KRITAB-TABNAME KRITAB-FNAME.
        APPEND KRITAB.
      ENDSELECT.
      LOOP AT KRITAB .
        CONCATENATE 'LN_LFM1' '-' KRITAB-FNAME
        INTO SENSITIVE_FIELD.
        CONCATENATE 'I_LFM1' '-' KRITAB-FNAME
        INTO SENSITIVE_FIELD2.
        ASSIGN (SENSITIVE_FIELD) TO <FIELD_VALUE>.
        ASSIGN (SENSITIVE_FIELD2) TO <FIELD_VALUE2>.
        IF <FIELD_VALUE> NE <FIELD_VALUE2>.
          <FS_LFA1>-CONFS = '1'.
          IF SY-TCODE = 'XK01' AND <FS_XASEG> = ' '.
            DATA : LFM1CONFS(1) TYPE C .
            EXPORT LFM1CONFS LFM1CONFS2 FROM '1' TO MEMORY ID
      'LFM1CONFS'.
            UPDATE LFA1 SET CONFS = '1'
                            UPTIM = SY-UZEIT
                            UPDAT = SY-DATUM
                      WHERE LIFNR = <FS_LFA1>-LIFNR .

How can I get and change the values of Withholding tax grid in MIRO trx

Hi everyone,
I have a requirement where I need to get and change WT_WITHCD field in MIRO's Withholding tax grid. Is there a function module / Badi to do this? I used MRM_HEADER_CHECK, but the parameters related with this badi doesn't have this value.
Do you have any idea?
Thanks in advance!
Regards.
Leo.

Hello Leonardo,
You can change that table with help of the filed-symbol in the BADI MRM_HEADER_CHECK.
LOOP AT ti_drseg INTO ls_drseg.
lv_index = sy-tabix.
LS_DRSEG-MWSKZ = 'I0' . " < For example
MODIFY ti_drseg FROM ls_drseg INDEX lv_index.
ENDLOOP.
FIELD-SYMBOLS: <drseg> TYPE mmcr_tdrseg.
ASSIGN ('(SAPLMR1M)ydrseg[]') TO <drseg>.
<drseg> = ti_drseg[]. " this will modify the data in MIRO with your modified data
Regards,
Naimesh Patel

Withholding tax based on segments/profit center

Hello Friends
Iam developing withholding tax report for our FI module.I need to show report based on segments which are our different company offices.Now WITH_ITEM table does not has segment otherwise I would have directly picked data from WITH-ITEM. .Iam using this complex logic,which I have a feeling is not the right way and is taking lot of time to run.
My report logic is as follows:
First I pick from BKPF those documents which are vendor payments.
SELECT * INTO CORRESPONDING FIELDS OF TABLE ibkpf
         FROM bkpf
         WHERE bukrs = p_bukrs
           AND gjahr = p_gjahr
           AND belnr IN s_belnr
           AND blart IN ('KZ')
           AND budat IN s_budat.
Next I find the invoice number against that payment number.
LOOP AT ibkpf.
SELECT SINGLE belnr FROM BSak
                        INTO v_belnr
                        WHERE bukrs = p_bukrs
                          AND gjahr = p_gjahr
                          AND augbl = ibkpf-belnr
                          AND BLART = 'KR'.
Then I get the segment against that invoice and remove from internal table those values whose segment is different.
    SELECT SINGLE segment FROM bsis
                     INTO v_segment
                      WHERE bukrs = p_bukrs
                        AND gjahr = p_gjahr
                        AND belnr = v_belnr
                       AND segment = p_seg.
IF sy-subrc NE 0.
      DELETE ibkpf.
   ENDIF.
ENDLOOP.
Now getting from with_iem data against the remaining document numbers.
SELECT * FROM with_item FOR ALL ENTRIES IN ibkpf
     WHERE bukrs     = p_bukrs
       AND belnr     = ibkpf-belnr
       AND gjahr     = p_gjahr
       AND wt_acco   IN s_lifnr
       AND wt_withcd IN s_taxc
       AND witht     IN S_WITHT.
If some one has experience in withholding tax reports,he can check my code and suggest some other logic as our data base is not too heavy at this time still report is very slow.
Thank you

Hi Nouman,
For performance related issue,please select only required entries because use of *SELECT ** will degrade its performance.
Make a structure and avoid using CORRESPONDING FIELDS OF .
Regards,
Praveen

Withholding Tax all Condtion table not appearing in Rebate Credit memo

Hi
I am finding issue in rebate credit memo.
Issue: In Acces sequence I have table 397 and extended 397 with additional fields.
In normel credit memo I am able to find all these table in sales order Pricing Analysis tab.
But in rebate credit memo, I am not able to find all table. Credit memo is showing 397 table but not showing ztable.
Please check below screen shot for details
1. 397 and 988 are identical and its appearing in rebate credit memo.
I created 988 just to verify if any thing wrong in ztable generation or any thing missing to map.
987 is extended table with addtional field sales doc. Type, Item category and its not appearing in Rebate credit memo.
2. Rebate credit memo showing 988 and 397 table
3. Normel credit memo showing all three table
Question : How to get all three table in Rebate Credit memo?
If 988 is appearing than why 987 is not populating.
Both are Ztable and created together.
I tried many combination but extended ztable not coming in rebate credit memo
Regards
Neeraj

Hi JP,
Thanks
Routine 923 created as per SAP note 178824. And I am finding this issue only for rebate credit memo request.
This condtion type (withholding tax ) is not part of rebate condtion. It is part of standard pricing procedure same like MWST.
In Normel credit Memo (CR) all access assigned to this access sequnce is visible in sales order pricing analysis.
But rebate credit memo request (B3) not showing all access (as in above screen shot). It shows only 2 access out of 3 access.
One more addition
If I am maintaining condtion record for visible access in rebate Credt memo request i.e. country / Tax relevant classifcation.
SAP disble it in rebate credit memo request order.
But normel Tax (MWST) is appearing in rebate credim memo request.
I am not sure if this is due to standard sap.
For Thailand we require withholding tax for Rebate credit memo.
Please advice if any one can give some input on this.
Regads
Neeraj

Calculation of withholding tax after the certain amount

Hello all,
I would like to ask you when you can customize the settings for withholding tax. We have received the request to set a new witholdng tax which should calculate after $1000 before IVA (if invoice before iva is $1001 should calculate withholding) if the amount is 1000, it should not calculate the withholding tax.
Is it possible? so far its set with base amount 100% and calculation witholdng tax rate: 5%, posting indicator 1.
thanks a lot for your appreciated feedback
regards
Hana

Dear,
Please use minimum and maximum amounts for your requirement in withholding tax calculation, go to spro-->financial account >financial accounting gs>withholding tax >extended withholding tax> calculation>min/max amounts>define min/max for types.
Here, give the mini amount as 1000. Now check how the system will calculate.

How to create AP payment terms and withholding tax from backend ?

Hi All,
I have a requirement to create the AP Payment terms and withholding tax from backend as the data is going to be uploaded into 15 different instances therefore for the convenience i am looking for any API or Interface to create these from backend.
Thanks & Regards,
Mayur

Hi Gurus,
Please give me some information on this.
Thanks,
Mayur

Generic Withholding Tax Reporting Error

Dear SAP Experts,
We have been using the classic Withholding Tax which works just fine to generate print outs and the electronic file that we submit to the IRS. However, it does not seem to correctly provided data for alternate payees for example: if vendor A provides invoice and if we pay to vendor B (which is same vendor at different address) the system does not pick up the payment..The actual payment generates the 1099 requirement. If we were not submitting electronically we could execute the 1099 report for invoices as opposed to payments (for just those vendors with alternate payees).
I would appreciate if anyone could help me in resolving this issue.
Actually we are thinking to use the extended withholding tax but it does not appear to work correctly either it is not set up to generate the e-file or hardcopy 1099s and it also seems to be fixed on looking at invoices not payments.(which i think is not correct) For example .if we get in invoice in Dec 2009 ...but do not pay until Jan 2010...the invoice should not be counted in 2009 1099 data...the payment should be counted in 2010 1099 data. I wanted to confirm if the extended withholding tax performs in the way that i mentioned above, or iam wrong.
Kind Regards
Jai

We are on ECC 6.0 and have been using the Extended Withholding Tax and it works correctly for Alternative Payees. Where we have the vendor master set up with an alternate or permitted payee. The 1099 is produced on the main vendor's ID and not the remit to address. In config, you have a choice whether to produce the file/forms based off the invoice or payment. It's under the Define Output Group. Choose your process (i.e. US_1099). There's a section entitled "Read Withholding Tax Items from" and you can choose Option 2 for Vendor Payments. This Define Output Group is also where you configure which Smart form to use and your DME file format and where to save your file. Hope that helps.
Cindy

Request to Make Withholding Tax info changeable on Cleared Line items

Hello all,
I got a new requirement where the client wants to change the withholding tax information in vendor cleared items. some documents got posted with wrong WT T type, now they want to make the changes to submit 1099 report. Withholding tax info is updated in vendor master and it is picking up defaultly while making the postings to the vendor through FB60.Even this field (Withholding tax type) is not changeable in Withholding tax info tab of the FB60. i try to make the settings through Tcode OB32 (document change rules) but unfortunately this field is not editable in withholding tax information, while open the document through change mode. The field is WITH_ITEM-WITHT (Withholding tax type).
Please can anyone help me who works on this.
Thanks & Regards,
Venkat
Edited by: p.venkateswarareddy on Jan 20, 2010 9:21 AM

Dear Kumar
The relevant withholding tax types change, for example, as a result of legal changes. A withholding tax type is relevant if the following conditions apply:
1. The withholding tax type is entered in the SAP master record of the business partner and indicated as subject to withholding tax (vendor).
2. The company code is indicated as authorized to deduct tax for vendors or as subject to withholding tax for customers for this withholding tax type (withholding tax data for company code: View V_T001WT)
3. The posting date is in the validity period for the deduction authorization (withholding tax data for company code View V_T001WT).
Regards,
Chintan Joshi.

Create withholding tax data subsequently for reconciled and open items in c

Hi All,
Mine is a US co code and I have a vendor for which invoice and payment documents are posted. After posting the invoice i found that the vendor is subjected to classic withholding tax which i did not calculate when posting invoice, making payments.
Now i have changed the vendor master data with relevant withholding tax details.
I know the program RFWT0020 allows us to create withholding tax data subsequently for reconciled and open items in cases where vendors or customers become liable for withholding tax with a tax rate of 0 %.
It is not working out for me.
Can any body help me on this.
Thanks in advance.

Dear all,
by se38 --> report documentation, You can read carefully the following:
The auxiliary program makes it possible to convert both classic and extended withholding tax data. However, with classic withholding tax, ONLY VENDOR data can be converted.
In addition, the program enables the withholding tax code to be changed for reconciled and open items with existing withholding tax data. For this, the tax rate of the existing withholding tax data as well as the tax rate of the new withholding tax code must be 0%. The new withholding tax codes are taken from the customer or vendor master data. In the case of extended withholding tax, the withholding tax code is only changed if the related withholding tax categories are the same. The withholding tax base amount is not changed by this procedure.
Recreating or changing the withholding tax data requires that the program first be executed for INVOICES and then executed for PAYMENTS in a subsequent step.
I hope this helps You.
Mauri

Withholding tax information

Hello Friends,
With respect to withholding tax Iu2019m facing difficulty to map the below user requirement.
User want to incorporate the withholding tax (WHT) information at purchase order level, but in the purchase order we can't find any such provision to input withholding tax information.
Standard system behavior is that if vendor is subject to WHT, WHT can be calculated at invoice verification level.
We have to cater the below 2 scenarios, guys please provide your expert advice on this:
1. WHT information is to be maintained at PO so that the person making VIV will not commit any error in selecting the tax code or will not make the invoice without inputting the relevant WHT information to avoid invoice being created without WHT on invoices subject to WHT.
2. In a purchase order there are more then one line items some are subject to WHT and some are not, we want to capture the WHT on the items liable for WHT.
We know that WHT is not calculated on item level it is calculated at header level on vendor.
Thanks

Hi Sapref,
1. WHT information is to be maintained at PO so that the person making VIV will not commit any error in selecting the tax code or will not make the invoice without inputting the relevant WHT information to avoid invoice being created without WHT on invoices subject to WHT.
Ans : What you want to ensure at the P.O. level is actually controlled at the Vendor master level and whichever P.O. you use.. if it is maintained in the vendor master, it will deduct TDS at the time of Invoice.. so there is no chance of committing any mistake.. if it is once maintained in vendor master data. Further there is no provision in SAP to maintain TDS Tax codes at the P.O. level
2. In a purchase order there are more then one line items some are subject to WHT and some are not, we want to capture the WHT on the items liable for WHT.
Ans : You are correct, that TDS is at the vendor level and not at the line item level. But Suppose you have an Invoice, which contains two line items, one on which TDS is to be calculated and the other on which TDS is not to be calculated, then at the header level in MIRO, you can enter the Witholding Tax Base amount and the TDS amount manually, and it will get calculated accurately.
Regards,
SAPFICO

Withholding Tax Report

Hi Friends,
scenario: Vendor invoice posted with withholding tax, entry recorded is
Vendor                           Cr   900
Withholding tax payable Cr   100
Expense account           Dr 1000
Where withholidng tax payable is a GL account where all withholding tax payabe is credited for all vendors subjected to withholding tax.
In the system there are two standard reports available
S_P00_07000134 - Generic Withholding Tax Reporting
S_PL0_09000447 - Withholding Tax Report for the Vendor
these two reports show all the recorded tax line item for selected period irrespective of whether tax is paid or not,
I was looking a report where in i can be able to view only withholding tax wich is to be paid i.e., all the open items in the withhholding tax payable account.
Any one please came across such requirement.
Regards

Hi ,
In case if you are using CIN country version then you can view the report J1INMIS .
In case if you want to view the open item in the GL account , then usually taxation accounts are maintained as open item managed .
Use report FBL3N or FAGLL03 to view the GL account details , put the tick on open items only .
Hope this helps .
Regards ,
Dewang T.

Withholding tax requirement

Similar Messages

Maybe you are looking for