Withholding Tax - Rounding Off

Hi,
I have problems on my withholding tax setup, it automatically round off even if my settings in the currency is NO ROUNDING.
My SAP is 8.8 patch 13. I have no problems on Vat, only on withholding tax amount.
Kindly advise.
Thanks,
Harlene

There is country specific settings in "Setup -> Financials -> Tax -> Withholding Tax", rounding type for Autralia and New Zealand.
Refer to the help file for the rounding details.
Country-Specific Fields: Australia & New Zealand
Rounding Type Choose the relevant rounding type from the drop-down menu:
Truncated AU u2013 this option is relevant for a penalty withholding tax. The tax amount calculated is truncated, and appears without decimals, for example, a tax amount of 72.25 is truncated to 72.
Example
If the withholding tax is posted when payment occurs, the calculation is done as follows:
You create a payment for an invoice whose total value is 11.6 (=net value 10 + 16% vat), and the withholding tax is 18%.
The total of 11.6 is truncated to 11.
The WT is calculated as: 11*18% = 1.98
The WT amount is truncated to 1.
Result: The posted value of withholding tax is 1, and the bank account is credited for 10.6
End of the example.
Commercial Values u2013 this option is relevant for voluntary withholding tax. In this case the rounding calculation is done as follows:
1 to 49 cents is rounded down to the nearest dollar, for example, 34.27 becomes 34.
50 to 99 cents is rounded up to the nearest dollar, for example, 50.68 becomes 51.
Example
The following explains the calculations when creating the payment for the invoice mentioned above, but according to commercial rounding:
The invoice total is 11.6.
Withholding tax = 11.6*18% = 2.088. This amount is rounded to 2.
A value of 2 is posted for withholding tax while the bank account is credited for 9.6.
End of the example.
BR.
Joyce

Similar Messages

Withholding tax rounding Diff

Hi
Whilst invoicing the service tax amount is 3656.5 which rounded off to 3656 and whilst payment it is 3657.
In the tax type I have selected w/tax comm round.
could you help
regards
Jimmy

Hi,
Check the withholding tax type for payment and check the rounding rules.
Regards,
Krishna Kishore

Service Tax rounding-off

Dear All,
In one of our client service tax is rounded off to nearest paisa i.e. Rs. 145.98
But the client need to round-off to nearest rupees i.e. 146.00
Is it possible to round-off to nearest rupees? If it so than please explain me in detail how to do that.
Thanks & Best Regards,
nms

Hi Vijay,
If you do what you have mentioned - the system will round the amount irrespective of whether it is more than .50 or not. Ex. If you select rounding rule as A it will round up to next rupee eventhough the amount is ex. 50.02 will round as 51.
Rounding will be configured in tax procedure against Condition type you have to select as 17 in Caluclation type coloumn.
BSR

Tax Rounding off

Hi All,
Where do i find tax rounding options for GL accounts.

hii
path for rounding up of withholding tax types
SPROFINANCIAL ACCOUNTING NEWFINANCIAL ACCOUNTING GLOBAL SETTINGSWITHHOLDING TAXEXTENDED WITHHOLDING TAXCALCULATIONWITH HOLDING TAX TYPE--DEFINE ROUNDING RULE FOR WITHHOLDING TAX.
Hope u get the answer
please assign points
sejal

Withholding Tax - Rounding Rule

Dear Friends,
My TDS amount if working out to INR 112.08, as per rounding rule defined (100) in config it is reflecting as 113.00
Actually i tried using different options in Quality server, but am not getting what i expect.
if TDS if below 50 paisa, it should round to previous rupee, 50 paisa and above 50 paisa it should round off to next rupee, like maths.
What kind of rounding rule should i define? Is it possible
Thanks
Sanjay

Dear Sir,
Thanks your responce......
I have done same setting in QTY server...
After complete configuration assign the tax code in vendor master ....
When i pass the first entry the Amount of TDS calculate is right
Basic amount: 194933 Dr
Vendor a/c    : 175439 Cr
   TDS             : 19494   Dr.
net tds Amount is Rs 19493.30 .
But after this... I want to pass another entry
Basic : 194933 Dr.
Vendor 175440 Cr
TDS :    19493 Cr.
The TDS amount is 19493....
every vendor 1 entry tds amount is correct but when i pass 2 entery in the vendor the TDS amount is wrong...
Kindly help me ......
Regards
Pankaj

WITHHOLDING TAX ROUNDING ERROR

Hi All,
I faced one problem ie; at the time of sub contract service charges invoice posting Education Cess amount whereever below one rupee system generate entries geting debited, actuvalli this was worng in accounting.
that to this was happen some of the cases only.
please give the sloution
THANKS IN ADVANCE
Regards & Thanks
KRISHNA KUMAR

Hi,
Good morning and greetings,
Please go through the following SAP OSS note
Note 720332 - 7.5 "Round Tax Amount in Rows" Setting for PL Localization
Note 927977 - Can't enter a document rounding amount without recalculating
Note 662600 - Calculation of the Rounding field in A/R and A/P documents.
Please reward points if found useful
Thanking you
With kindest regards
Ramesh Padmanabhan

Withholding Tax Certificate (Spain)

Hi,
One of the requirements in the project I am working at the moment is to generate the Withholding Tax Certificate and I can find out the way of generating the print out. The country where the report needs to be generated is Spain. Could anyone give me a hand? since I cannot find a standard form for this.. Do I have to generate a new form copying from an existing one? Is the WH Tax Certificate generated from the tr. S_PL0_09000447 and then this calls the form generated for this report?
Thanks and regards in advance.
F.

Hi
Symptom
Your company code is in Spain and you work with classic withholding tax.
This note is designed to help during the changeover from classic to extended withholding tax for Spain.
Other terms
Withholding tax, QSSKZ, customer, vendor, withholding tax changeover, withholding tax migration, WTMG, WTMIGRATION, classic withholding tax, QST, extended withholding tax, Spain
Reason and Prerequisites
The changeover from classic to extended withholding tax must be performed using a conversion tool (Transaction WTMG).
Solution
Since Release 40B, the extended withholding tax function has been available in the standard system. By changing to the extended withholding tax, it makes using withholding tax on the debit side possible. In addition it is possible to post different withholding tax categories in a document at the same time. You can find more information on the extended withholding tax function in the SAP Library.
It is only possible to change from classic withholding tax to extended withholding tax using a conversion tool.
On no account should you activate the extended withholding tax in your system without using this tool if you have been using the classic withholding tax up to now.
Information concerning the changeover and the changeover tool can be found in Note 337267.
This note describes the creation of the withholding tax types and withholding tax codes and the use of the changeover tool for the country Spain.
However this note does not replace the documentation concerning the withholding tax changeover in the SAP Library (or the Word file during the transport from the SAPServ according to Note 186989), it simply provides additional information for Spain!
1. The following is a list of the withholding tax codes used in classic withholding tax. If the withholding tax codes you are using are called differently, you must take that into account later during the assignment of the withholding tax codes of classic withholding tax to the type/code combinations of extended withholding tax.
Probably the specified withholding tax codes do not agree with those which have you used in classic withholding tax. Since the specified codes are the official ones, first change your Customizing for classic withholding tax such that the specified withholding tax codes are defined for the different withholding tax codes.
2. Define the official withholding tax keys for the country ES in extended withholding tax under Financial Accounting Global Settings --> Withholding Tax --> Extended Withholding Tax --> Basic Settings --> Define Official Withholding Tax Codes:
3. Create the following withholding tax types of extended withholding tax for the country ES:
To create the withholding tax types, select Financial Accounting Global Settings --> Withholding Tax --> Extended Withholding Tax --> Calculation --> Withholding Tax Type --> Define Withholding Tax Type for Payment Posting in the Implementation Guide for Financial Accounting.
Select 'Net amount' in the "Calculation/Base amount" screen area in each case
Select 'W/tax comm. round' in the "Calculation/Rounding rule" screen area in each case
Select 'C/disc pre W/tx' in the "Calculation/Cash discount" screen area in each case
Set the 'Post w/tax amount' indicator in the "Calculation" screen area in each case
Select 'No accumulation' in the "Accumulation type" screen area in each case
Set the 'W/tax base manual', 'Manual w/tax amnt' and 'No cert. numbering' indicators in the "Control data" screen area in each case
Select 'W/tax code level' in the "Define minimum/maximum amounts", "Base amount" screen area in each case
Select 'W/tax code level' in the "Define minimum/maximum amounts", "Withholding tax amount" screen area in each case
Select 'No centr. invoice' in the "Central invoice" screen area in each case
Select 'Minimum Check at Item Level' in the "Minimum Check" screen area or 'No min. base check at item level' in the "Minimum base check" screen area in each case
All the other fields in the withholding tax type must be left unselected.
4. Create the withholding tax codes belonging to the withholding tax types:
To create the withholding tax codes, select Financial Accounting Global Settings --> Withholding Tax --> Extended Withholding Tax --> Calculation --> Withholding Tax Codes --> Define Withholding Tax Codes in the Implementation Guide for Financial Accounting.
Copy the names from the first list (under point 1).
Enter the official withholding tax key (Off. W/Tax Key) in the corresponding field as specified above.
Select the same percentage as defined in the corresponding withholding tax code of classic withholding tax under 'Calculation of the withholding tax base amount' for the percentage subject to tax in the "Base amount" screen area. (the percentage should agree with the above-mentioned percentage subject to tax (%sub.to tax)).
Select the same rate as defined in the corresponding withholding tax code of classic withholding tax under 'Calculation of withholding tax' for the withholding tax rate in the "Calculation" screen area (The rate should agree with the above-mentioned withholding tax rate (WT rate)).
Set value '1' for the Post.indic. in the "Postings" screen area
Select the corresponding settings as in the corresponding withholding tax code of classic withholding tax in the "Reporting information" screen area (The settings should agree with the above-mentioned specifications for region and income type (Inc.type)).
All the other fields in the withholding tax code must remain empty.
Create a withholding tax conversion run:
Call Transaction WTMG
Choose 'Create'
Assign a name to the conversion run
Select change 'Choose Company Codes' and enter the company code to be converted and country 'ES'
Select change 'Type/Code Assignment' and assign the respective new withholding tax types and withholding tax codes of extended withholding tax to the withholding tax codes of classic withholding tax defined for country 'ES':
Execute the 'Analysis'
Select the option 'Several withholding tax types possible per vendor' under 'Master data settings'
Carry out the conversion steps (to start with in the test run).
After the withholding tax changeover has occurred, create the following recipient codes for the country ES to complete Customizing:
To create the recipient code, select Financial Accounting Global Settings --> Withholding Tax --> Extended Withholding Tax --> Reporting --> Define Recipient Code for Extended Withholding Tax in the Implementation Guide for Financial Accounting.

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
We pay Withholding Tax to a Tax Authority in one go @payment time.
In this scenario there are 3 invoices which needs to be paid through 1 payment.
When we make a payment for these 3 invoices the amount becomes 6515.52. This is a wrong figure. The figure should be rounded to 6516.
Invoice No Invoice Amount
INV1 5312
INV2 253.4
INV3 950.12
Total Payment Amount for these invoices i.e 1 Consolidated Payment which Oraclegenerates is 6,515.52 .
Expected behavior:
Instead of processing a payment of 6516, the system is generating a payment of 6515.52. which we don’t want.
We want system to generate a payment of 6516.
In order to arrive at the figure of 6516
Oracle says we have to customize AP_CUSTOM_WITHHOLDING_PKG....... in that package following SPECIAL ROUNDING SCRIPT NEEDS TO BE UPDATED.....
In order to get the following results; for instance;
eg----IF FIGURE for INV 1 IS ------ 100.51 MAKE IT 101
eg IF FIGURE FOR INV 2 IS --------100.50 MAKE IT 100
eg IF Figure FOR INV 3 is --------100.49 MAKE IT 100
Hence i found the following AP_SPECIAL_ROUNDING script................but needed to update to get the above results........pls help on how to update following AP_SPECIAL_ROUNDING script...........
procedure Ap_Special_Rounding (P_Checkrun_Name IN varchar2)
is
--l_org_id NUMBER(15); -- BUG 7232736
BEGIN
-- BUG 7232736 : added select ot get the Org_id using checkrun_id (p_checkrun_name)
-- 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
-- IF jg_zz_shared_pkg.get_product(l_org_id, NULL) is not null THEN
JG_WITHHOLDING_TAX_PKG.AWT_Rounding(
P_Checkrun_Name
END IF;
-- Please enter all custom code below this line.
-- Begin Custom Code
null;
-- End Custom Code
END Ap_Special_Rounding;
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

How to use Round off function in TAX Formula

Dear All,
         I have to do Round off in the Tax Formula. Hence I was suggested by the SAP Forum Team to use Round off function in the Tax Formulae.
         But sir I don't know how to use Round off function in the Tax Formulae.
        For Eg. BaseAmt = Total
                    TaxAmt = BaseAmt * Rate
           Now within this Eg. How will i use the Round off function and where i will use it.
           Please guide me with example.
Regards
Hitesh Parsawala

Hi Hitesh,
you can do like this
Cess_ST_TaxAmt=Round(Cess_ST_BaseAmt*Cess_ST_Rate,0)
where you can introduce rounding function by choosing from dropdown available in Operation and by click on Insert.
It will post following in formulla window
Round (Number, Decimals as Number)
where in parameter you have to give 1.Number-which is to be round and 2.Decimals as Number-as per your requirement like by 2 decimal or 0 decimal
If required give me call,
BR
Samir Gandhi

Withholding tax Ecs rounding problem

Dear All,
I have one issue when I am calculating the TDS. When Calculating the TDS
Basic, surcharge, ECS and SEC has to be rounded off to their nearest value
if it is below or above 0.50.
But my case ECS is rounding off to 1 eventhough it is below 0.50.
For example:
Vendor Invoice amount is Rs.780/- on this we are calculating TDS.System
has to show entry like this.
Expense A/c   Dr 780.00
To TDS Basic 194C Cr   16.00 (2% on 780)
To TDS Surcharge 194C   2.00 (10% on Basic)
To Vendor         Cr 762.00
But System showing..
Expense A/c   Dr 780.00
To TDS Basic 194C Cr   16.00 (2% on 780)
To TDS Surcharge 194C   2.00 (10% on Basic)
To TDS ECS 194 C        1.00 (2% 0n Basic+Surcharge)eventhough it is 0.3432
To Vendor         Cr 761.00
I am using A1FS Standard W/tax type CA, CB, CC, CD and M1 WTax Code for
194C Others.
Eventhough I checked below checked ..
Financial acounting->Financial Globalsettings->W/tax->Extended W/tax->
Calculation->W/tax Type->Define Wtax type for Invoice/Payment Posting.
Here Rounding rule is " W/tax comm. round"
In ->Define rounding rule also is rounding unit "100"
But still my issue is open. Please guide on thisDear All,
I have one issue when I am calculating the TDS. When Calculating the TDS
Basic, surcharge, ECS and SEC has to be rounded off to their nearest value
if it is below or above 0.50.
But my case ECS is rounding off to 1 eventhough it is below 0.50.
For example:
Vendor Invoice amount is Rs.780/- on this we are calculating TDS.System
has to show entry like this.
Expense A/c   Dr 780.00
To TDS Basic 194C Cr   16.00 (2% on 780)
To TDS Surcharge 194C   2.00 (10% on Basic)
To Vendor         Cr 762.00
But System showing..
Expense A/c   Dr 780.00
To TDS Basic 194C Cr   16.00 (2% on 780)
To TDS Surcharge 194C   2.00 (10% on Basic)
To TDS ECS 194 C        1.00 (2% 0n Basic+Surcharge)eventhough it is 0.3432
To Vendor         Cr 761.00
I checked below
Financial acounting->Financial Globalsettings->W/tax->Extended W/tax->
Calculation->W/tax Type->Define Wtax type for Invoice/Payment Posting.
Here Rounding rule is " W/tax comm. round"
In ->Define rounding rule also is rounding unit "100"
But still my issue is open. Please guide on this

Check the Tax type configuration for ECS, it must be selected as "Rounding Up".
Make it "Comm. w/t rounding". It wil solve your problem.
Thanks

Rounding off service tax

Hi Guru's,
I would like to know what settings do I need to do the round off to next rupee in the service tax calculation.
If sevice Tax Amt - INR 240.23 = INR 240
If service Tax Amt - INR 240.55 = INR 241.
That means if it is .50 and above it should round off to next rupee, else round off in other way.
Thanks in advance.
Deepak

Hello
Some times rounding off in invoices can be country specific, where decimals / rules for rounding can be defined.
Maintain these and check. But this could affect other documents also, which I am sure you do not want.
Please check this
SPRO-> EWT>Calucaltion>define rounding rule for tax type
Reg
*Assign points if useful

Net Tax amount round off

Hi all,
I have a small problem,
In sales Invoice I am having 10 items with different price and quantities,
In PLD i have used formula concept to show tax wise break up,
as our invoice tax amount is cumulative of its sub taxes,
i need to round off the total of sub taxes in the document
For Example:
In Invoice;
Assessable Value: 3697.20 (qty X Price)
Total of BED 8%: 295.77
Total of Cess 2% of BED : 5.91
Total of HE Cess 1% of BED: 2.95
Total of VAT/CST 4% of (BEDCessHECess): 160.08
So I want to round off these amounts:
BED: 296
Cess:6
HECess:3
VAT: 160
1. I tried using rounding option in tax formula;
but it doesnt give correct result as it works on row level
2. I also tried making decimal places zero in general settings
But it round off my assessable value also
also round to one is also active in currency settings
can anybody please help me to get the desired results
Regards,
Atul Joshi
Edited by: Atul Joshi on Dec 9, 2008 1:38 PM

Hi,
If you use round off in tax formula it will bring you considerable differrence.
You use the document level rounding in Administrattion->Setupup-Financials->Currency.
I think this would be helpful for you.
Rgds,
Sundar

Rounding off tax

Hello all,
I would like to know what settings do I need to do the round off to next rupee in the service tax calculation.
If sevice Tax Amt - INR 240.23 = INR 240
If service Tax Amt - INR 240.55 = INR 241.
That means if it is .50 and above it should round off to next rupee, else round off in other way.
Thanks in advance.
Ram

Hi,
I have got the solution. I hope it will be useful for you also, if share with you.
I have customized as below to meet the requirement.
1. Rounding rule is changed to u201CCommercial u201C(Blank) for the Condition Types. (Transaction code: OBQ1)
2. For the Condition Type, Routine 17 has been included in the u201CCalTypeu201D column. (Transaction code: OBQ3)
3. Defined rounding rules for INR with company code and currency combination (Transaction code: OB90)
Thanks
Ram

Rounding off Serv Tax

D/ Friends,
We want that Service Tax (including ECess & SE Cess on Serv Tax) shd be rounded off in PO. How is this possible? Any routine is required to be assigned to the Service Tax or thru something else? Weu2019re using TAXINJ.
Pls advice.
Thank you.

Hi
Go the T code OBQ1 select the appropriate condition type & double click, for which you want to maintain rounding value. Go to Group condition
Select round difference
Indicator that controls whether rounding difference is settled for group
Conditions with a group key routine.
If the indicator is set, the system compares the condition value at Header level with the total of the condition values at item level. The difference is then added to the largest item. So it will rounded off to the nearest value of condition
Regards

VAT/CST need to round off in MIRO

Dear All,
I want vat/service tax values should get round off while doing MIRO
Is it possible?
In our system withholding tax is getting rounded off in MIRO so my client is asking for these G/L's too..
Please let me know if it can be done or not
Naren

Hi,
Please do the following-
assign calculation type 17 (roundin off) to the VAT/CST condition type in tax procedure.
and check the scenario again.
regards,
sujit borse

Withholding Tax - Rounding Off

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