Withholding tax settings

Hello Friends,
With respect to withholding tax settings i have a query.
In the IMG menu there is withholding tax setting available under Financial Accounting >Financial Accounting Global Settings and also availalbe under Financial Accounting >Accounts Receivable and Accounts Payable>Business Transactions>Incoming Invoices/Credit Memos>Carry Out and Check Settings for Withholding Tax.
Can any one please tell what is the difference between these two.
The helptext at the nodeCarry Out and Check Settings for Withholding Tax says
You can make new settings for withholding tax here, or check existing settings:
If you have already made settings for withholding tax in the "Financial Accounting Global Settings" Implementation Guide, you can check that those settings are correct here.
If you have not yet made any settings, you can do so here.
As per the above point 1 in the help text what ever setting we do in "Financial Accounting Global Settings" should be availalbe here for viewing or editing. But this is not the case.
Is it that the settings in "Financial Accounting Global Settings" and "Accounts Receivable and Accounts Payable"
are for different purposes ? If yes where.
thanks & regards

Hi Mauri,
Thanks for the reply that in deed helped me in understanding.
Can it be said that in the earlier versions where classic withholding tax was only available the customization settings options were availabe in both these nodes, wherein these settings can be done from anywhere.
But in case of extended withholding tax all the cusotmizations will be done at one place i.e., in Financial Accounting Global Settings.
Thanks

Similar Messages

Withholding tax settings(not extended withholding tax)

Hi,
I am working on withholding tax(not extended withholding tax). Previously we have one company code for that we created withholding tax and withholding tax codes. Now we are going to create another 2 new company codes. Now how to assign the withholding tax codes to the 2 new company codes.
In extended i can assign withholding tax codes to company code but in withholding tax how i can assign withholding tax codes to the 2 new company code.
Regards,
Sankar

Hi
You can assign the same w tax code to another company code also,for that you go through this:
Path: spro>financial global setting>Withholding tax> extended with holding tax
Company code  Assign with holding tax types to company codes
Path: spro>financial global setting>Withholding tax> extended with holding tax
Company code  Activate extended with holding tax
May be this information is useful to you
If you have any doubt feel free to ask
Regards
Surya

Automatic withholding tax calulation in MIRO

Hi Expert,
Please help me .............
How can I do configure the system to calculate withholding tax on MIRO?
At present I entered withholding tax details in vendor master data
but when I create MIRO the system don't calculate withholding tax .
Thanks,

Hi
After maintaining withholding tax settings and in vendor master, you can decide when this tax is to be excluded from total amount (at time of MIRO or payment run). You can set this in financial accounting - withholding tax - extended withholding tax - calculation - withholding tax type - define tax types for invoice posting. If you do not maintain for IV and maintain for payment then you cannot withheld the amount. Check with your FI consultant.
If everything is set right then choose tax type in IV under withholding tax data (you can change data here).
Thanks

Company codes have different settings for withholding tax treatment

Hi
I got the below error message and its correct. But, I would like to know whether there is any work around to over come this error.
thnks
Sridevi
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.
Procedure
Enter the transaction in two documents.
Hi
Can any one throw light on this?
Regards
Sridevi

Dear Madam,
Please activate WTH for another company for posting Inter company code Transactions.
If you are not posting INTER COMPANY Transactions
Just go to Document Posting ( any document Like ... FB60 )
Menu Bar>
Settings> Editing Options>
Click on Check box - Documents not cross - company code.
Just save and Go back and once exit and Reopen the document.
Next time you will not receive this message.
Thanking you
BRP

Withholding tax Amount not being displayed in the Invoice while posting a Parked Document

Hi,
I have created a parked document for the Vendor who has the Witholding tax code w9 - 15% . I created Parked Document using FBV1 and then tried posting the same using FBV0.Somehow I am not getting the Withholding tax Amount in the FI Document created. However the W/Tax Base Amount and the W/ Base LC are being displayed correctly.
Say if the Line item Amount is 1,000$ then both the amounts mentioned above in the Additional tab "Withholding tax Data" are being displayed as 1,000 usd but the W/Tax Amount is 0,00 USD.
2. Also We have the PI and the Interface is written to post the Parked document while the xml file. There is a Method Execute_Asynchronous which has two BDCs one for FBV2 ( Change Parked Document ) followed by the Post Parked Document FBV0. Hence When I try to post the Parked Document using the SPROXY Interface which has two BDCs Viz FBV2 & FBV0 I still get the Invoice with the Same Amounts and at times with additional 2 zeros added to it in the Additionsal Tax Data Screen.
I am not sure what is the reason for this. Can anybody help me sort out this Issue.
Can there be any Config issues. Please let me know what all config Settings we need to do to sort out this Issue.
Also let me know why the 2 Zeros are getting added to the Base Amount e.g if the Vendor Line item is 12,000 USD it shows as 12,00000.00 in the Withholding tax Data Tab in the Invoice.
Regards,
Deepak.

Dear Praveen,
please check into IMG if You defined the WT type You are using for Your Comapny code:
IMG --> Assign Withholding Tax Types to Company Codes
I hope this helps.
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

Dunning Wizard - Withholding Tax

Hi All,
SBO 2007 SP1 PL 07 or SBO 8.8 SP0 PL 11
The Dunning Wizard doesn't work for the A/R Invoice having the withholdin tax.
It includes the withholding tax in the amount to have. This is wrong!
Have you any idea how to fix this?
Simona
Edited by: Simona Bossi on May 26, 2010 11:19 AM

Hi Sekar,
I Reproduced the same scenario till delivery and used Doc. Gen wiz as target document as A/R Invoice it worked fine.
Settings BP and Item both we set to Witholiding tax Liable. The Invoice had withholdig tax amout added generated by the DGW.
Could you check in for the list of BP in DGW (Document generation wizard)
Business Partner --> Accounting tab --> Tax sub-tab --> WT taxes allowed and check if you have one WT checked.
Let meknow if this works.
Regards,
Rakesh

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

Withholding tax -number could not be determined for numbering group ID0017

While positing the FB60 transaction with withholding tax for country Indonesia, the below error is coming:
A number could not be determined for numbering group ID0017
Message no. 7Q630
"The system could not determine a certificate number for the numbering
group.
Withholding tax types exist that are relevant to numbering. The system
cannot determine a certificate number because the Customizing settings
are incomplete.
Sysem Response
Payment cannot be made.
Procedure
Check the number ranges in the numbering group."
Already seen the wothholding tax number range and it is coorec. Please advise how to resolve.

Dear,
Please check whether you have assigned the number range to the number group in the below setting
Spro
Financial Account Global Setting> Withholding Tax> Extended Withholding Tax> Posting> India> Remittance Challan> Assign Number Range to Number Groups

Withholding Tax in FB75 Recording - Creation of Credit Memo

Hi Xperts,
Here I have one problem while Creating Credit Memo using BDC.
        - I am trying to write a BDC for transaction FB75 ( Creation of Credit Memo)
        - All things are going fine except Withholding Tax part.
        - Transaction FB75 have a Tab "Withholding Tax".
        - Here, there is a Table control with 6 rows.
        - While creating Credit Memo it populate this table control with Withholding taxes.
        - The main task is,<b>Based on certain condition, I want to clear few Withholding tax values.</b>
        - If This table control has only 6 rows populated, then there is no orblem.
        - But in case of more then 6 withholding tax values i need to scroll down and process, however, that again we can do using p++ or P+ things.
        - Problem is, in this case we are not able to scroll down or page down which create a problem in accessing other rows.
        - What would b the solution......?
          Lets have brain Game for all ABAP Consultants................
Thanks in Advance,
Chetan Joshi.

Hi Vijay
credit memo request is a sales document used in complaints processing to request credit for a customer.
EXAMP--->
If the price calculated for the customer was too high (for example, with the wrong scaled prices or because a discount was forgotten), you can create a credit memo request. The credit memo request can be automatically blocked for checking. Once it has been approved, you can remove the block.
The system uses the credit memo request to create a credit memo.
the credit memo request(CR) Iis created ith referance to invoice based on configuration settings in vov8 and credit memo(g2)created refarance to credit memo request
refer to the links below.. might be of some use to ..
Credit Memo
http://help.sap.com/erp2005_ehp_02/helpdata/en/a8/b99890452b11d189430000e829fbbd/frameset.htm
Creating Credit Memo / Debit Memo
http://help.sap.com/erp2005_ehp_02/helpdata/en/dd/561076545a11d1a7020000e829fd11/frameset.htm
Creating Credit Memo / Debit Memo Requests
http://help.sap.com/erp2005_ehp_02/helpdata/en/dd/55fed1545a11d1a7020000e829fd11/frameset.htm
Credit & Debit Memos
http://help.sap.com/erp2005_ehp_02/helpdata/en/a2/40418a496e11d3b3850008c719be0f/frameset.htm
Processing Credit Memo : Example
http://help.sap.com/erp2005_ehp_02/helpdata/en/4e/b3c399a1f711d194e700a0c9306794/frameset.htm
Regards,
Ramana

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.

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.

Wong calculation of Withholding Tax on vendor INvoice

Dear Cheetaz,
In Pakistan rate of withholding tax on freight is 2% and same has been updated in vendor master record. As i am going to make payment to vendor through t ocde F-48 , system is calculating tax @ 1.98% instead of 2%
kindly advice where should i make changes in SPRO so that system claculate tax amount at the rate specified in vendor master records

Hi,
IMG > Financial Accounting > FA Global Settings > Withholding Tax > Extended WT > Calculation >
Withholding Tax Code
Define WT codes
Here WT codes (i.e. rates, etc) are defined for each WT type defined earlier.
F Note: A business transaction can be assigned only one WT code per WT type. If more that
one code (rate) has to be applied, these must be represented by different WT types.
Activity :
WT type                          WT code
W1                                  W1                    Sec194 - Contractor TDS
% subject to tax             100%
posting indicator             1                       i.e. standard posting u2013 bank/customer/vendor line
items reduced
WT rate                          2%
Income type                    SEW1
Define formula for calculating WT
regards,
Sanju

Restrict Withholding Tax change in not cleared documents

Hello,
We want to adjust the Document chnage rules - OB32 in a manner that it restricts Withholding Tax fields from changing when the document is not cleared.
We tested & found that the Withholding tax fields as below when defined in document change rules are giving strange results.
BSEG-QBSHB          Withholding tax amnt
BSEG-QSFBT          Wthld.tax-exempt amt
BSEG-QSSHB          Withhold.tax base
BSEG-QSSKZ          Withholding tax code
BSEG-QSZNR          Exemption number
Of these the field BSEG-QSZNR - Exemption number field remains unmodifiable in FB02 when the document is cleared & also when it is not cleared. We tested it for Vendor & the settings were made for Account type K.
The field is always greyed out even if we make the field as modifiable in OB32.
The rest of the fields are remaining modifiable when the document is not cleared & become non modifiable when the document is cleared. This behaviour is not affected by whatever settings we make in OB32.
We tried to search for an SAP note for this peculiar behaviour but could not find one.
Could you please help.
Thanks & Regards
Shreenath

Dear Shreenath,
if You want to retrict, please delete from V_TBAER table the entries I suggested and then go to IMG > Extended Withholding Tax>Calculation>Withholding Tax Type> Define Withholding Tax Type for Invoice Posting or Define Withholding Tax Type for Payment Posting -->
There will be a frame named Control data; there please switch off the flag "W/tax base manual" and "Manual W/tax amount.
Please do a test and let me know.
Mauri

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.

Withholding tax settings

Similar Messages

Maybe you are looking for