Witholding tax in Sales invoice
Hi All,
Just want to ask how to set up automatic computation of witholding tax in Sales invoice created in Sales & Distribution module. We already set up all necessary configuration in FI and customer master data. During postings in TCode FB75, the witholding tax automatically post in the transaction entry.
But during SD transaction, there is an automatical computation of witholding tax but the amount is zero and the witholding code is blank.
Hope to hear from you soon. Thanks.
Hello,
The determination of the withholding tax in the order is correct,
because there are only the condition base value is display, but not
the condition value.
This systembehaviour is absolutely correct, because the withholding
tax is only now active in FI.
Therefore this condition type is only displayed in SD without values.
For the determination of the withholding tax a table with the data
of the withholding taxes is build. (taccit_wt)
Therefore you need the customizing settings from FI and it is not possible to determine the values in the SD documents.
Regards
Claudia
If you are satisfied with the answer, please give Reward Points
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in teh same context i would like to know ehre or how i can find the syatem variable number corresponding to the different variables.Hello,
The determination of the withholding tax in the order is correct,
because there are only the condition base value is display, but not
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This systembehaviour is absolutely correct, because the withholding
tax is only now active in FI.
Therefore this condition type is only displayed in SD without values.
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Therefore you need the customizing settings from FI and it is not possible to determine the values in the SD documents.
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If you are satisfied with the answer, please give Reward Points -
Hi there,
i have a problem while I'm adding an AR Invoice Document contented witholding Tax, using DI API 2005 SP01.
i have an error message "Total Taxable amount of all rows exceeds the based amount"
Seems like the base amount is never filled, because in the DI API i can not find a way to fill it (base amount is a read only field).
does anyone know how to solved this issued
thanks for all your solution
rgds
alvinHi Edward,
thanks for your quick reply
regarding to your answer,
i'm using the latest patch of 2005A SP01 (PL 22)
if i created via SBO interface (GUI), as we knew that base amount in WTax Table
is filled automatically depend on Total Before Discount (in case of Net), but
my problem is when i create via DI API (SDK) object (Witholding Tax Object) (not using SBO GUI). I cannot set the base amount value, so I got those Error message which i already posted above.
Please your advice
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Decimal conversion of Sales Tax in 'SPARE PARTS SALE INVOICE' ( smart form)
Hello,
I am displaying a the value of the Sales Taxc in 'SPARE PARTS SALE INVOICE'. (in Smart Form)
The field(which holds the Sales Tax value is 'KWERT' -LBBIL_INVOICE-IT_KOND ), with datatype 'CURR', reference table 'KOMK' and reference field 'WAERK'.
In my smart form,i have declared a variable 'SALES_VALUE' of datatype 'KWERT' and reference field 'IT_PRICE-WAERK' (LBBIL_INVOICE-IT_PRICE), where 'WAERK' is the SD document currency.
Now when i display the field 'SALES_VALUE' i get 735.00 , whereas the original value in the field is 73.5
how to correct this and where am i wrong ?
Thankyou for yur time and really appreciate the help.
ShehryarYou are using currency fields that reference a currency code. Most currencies in SAP have two decimal places. Dividing by 100 will work in most cases. Ideally you should get the CURRDEC value in table TCURX for the currency you are working with... then divide by 10 that number of times.
example-
USD, 2 decimals, divide by 10 twice.
There is a function module that will do this for you. Can't think of the name...??? -
Witholding tax to be not defined at invoice or payment
Hello,
I'd like to understand if there is a way to enter an amount related to the withtolding tax in the pop-up but without post on a specific account during invoicing or payment.
Is there any way to manage "statistical" witholding tax?
Thanks and RegardsHi
May be you can enter WHT amount in a text field like assignment or Short text etc
Br. Ajay M -
Tax (VAT) being calculated on sales invoices where products are zero rated?
Hi
We are in the process of testing v. 12.1.2 (upgrading from v. 12.0.4).
We are producing sales invoices of zero rated products. However, tax is being calculated on these products. Have checked the item set up and the item is definately set to UK zero fiscal classification.
Is there somewhere in customer set up and/or tax administrator I can check to see if any of our set up is incorrect?
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JonWhen I tested this for the Customer I was able to calculate sales tax on an A/R invoice even when the BP was set to Exempt. I just want to make sure the system is functioning correctly. If I need to change the BP from Exempt to Tax Liable in order to be able to charge tax in some cases then I will do so.
Also, I was told by another SAP consultant the the ONLY thing SAP looks at when deciding to calculate tax was the Ship to address tax code, which does not seem to be the case.
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Withholding tax base amount is wrong for sales invoice
Dear Gurus,
we had generated invoice for cop (colombia paiso) 1377350 as follows
sales a/c cr 1080000
sales a/c cr 90000
sales a/c cr 114400
sales a/c cr 92950
vat a/c cr 33176
w/h a/c dr 36911(withholding tax account)
customer a/c dr 1373615
The wiholding tax rate is 3.5%. it is applicble only for first line for cop 1080000. we had applied withholding condition to that line only. The vat amount cop 33176 is 16% on cop(92950+114400). There is no withholding tax or vat on line for cop 90000. when we post the invoice, the withholdng tax base amount change from 1080000 to 1054598 and system post the wihholdng tax for cop 36911 instead of 37800. In sales invoice there is no possibility to change the base amount mannually in condition. it is grey area.
we had check the configuration part about maxmimum amount,minimum amount,withholding tax base amount,calculation procedure.withholding tax type,withholding tax code. Nothing is found wrong.
you early answer is highly appreciated
Reagrd,
Rajesh KHi
Cheque Go to Menubar of which document you have to post for getting the WHT value Menubar Settings - editing options - remove the tick calculate tax on net amount.
Rgds
Vani -
Witholding tax at the time of Invoice, payment and advance
Dear experts,
I have few questions as below. It would be great if you can help me out in this :
In vendor master I have two WTH tax codes for invoice and payment and marked as liable.
Incase of invoice (FB60) posting system is calcu;ating correctly and posting, but while posting no popup for to rectify the WTX code also no base amount is populating in WTH tax tab of invoice posting. Is this correct way??
While making payment for the same invoice through F-53, system is again calculating on same open item and no popup, until I go to WTH tax tab and delete the tax amount. What is lacking in my customising of WTH tax code (payment type), to restrict WTH tax calcutaing twice ??
While making advance payment by F-48, system not calculating WTX tax and showing tax code is mandatory, even though tax code (V0-tax exempt) entered, no WTH tax calculation happening. I have checked all Field status of document type and recon account, nothing is mandatory. I dint know why?? Please help in this regard.
Thanks in advance.
Regards
AbhiHi madhu
Thanks for explaining the process it works.
Regarding the error I was facing earlier to enter the tax code in F-48 for the tax category was marked as ' * ' in the advance reconciliation GL. I have removed them and now the error is not coming.
But now for the same or advance payment with F-48, I am not able post the document, though the payment WTX code is showing but not calculating the amount for the same.
The error is
"Withholding tax amount exceeds total bank line item amounts."
Message no. 7Q320
How to post it. Please help.
Regards
Abhi -
Hello Experts,
Can any one explain or send docs for Configuration of witholding tax configuration for Customers
[email protected]Configuration Guide
1 Overview
This configuration guide provides the information you need to set up the configuration for withholding tax under Financial Accounting. It covers configuration relating, classic withholding tax, extended withholding tax.
2 Configuration
2.1 Organization structure
2.1.1 Organization Setup Step
N.A
2.1.1.1 Use
N.A
2.1.1.2 Prerequisites
N.A
2.1.1.3 Procedure
1. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu <IMG Menu path>
2. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
- In above table enter the field name, description, and usage of every relevant field.
- In the table below, list down all the actual values set up in the client. Add or delete columns as necessary.
<Field -1> <Field -2> <Field -3> <Field -4>
Value 1-1 Value 2-1 Value 3-1 Value 4-1
2.2 Process Configuration for withholding Tax
The following are the configuration steps for Withholding tax.
2.2.1 Classic withholding Tax
Maintain Countries
Maintain Types of Recipient
Define Income Types
Maintain Tax Codes
Define Form Names for Extended Reporting
Define Output Groups
2.2.1.1 Maintain Countries
The withholding tax country is needed for printing the withholding tax form. Since the list of country IDs prescribed by law is different from the list in the system, you have to define the withholding tax countries again.
2.2.1.1.1 Use
Used For printing the withholding tax forms.
2.2.1.1.2 Prerequisites
N.A
2.2.1.1.3 Procedure
3. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Basic Settings Maintain Countries
4. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country Key country key contains information which the system uses to check entries such as the length of the postal code or bank account number
Withholding tax country An additional country is needed for calculating or reporting withholding tax.
Description Text of country
2.2.1.2 Maintain Types of Recipient
The type of recipient categorizes the vendor, which is necessary for printing the withholding tax form.
2.2.1.2.1 Use
Used For printing the withholding tax forms.
2.2.1.2.2 Prerequisites
N.A
2.2.1.2.3 Procedure
5. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Basic Settings  Maintain Types of Recipient
6. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country Key country key contains information which the system uses to check entries such as the length of the postal code or bank account number
Rec. Type Type of recipient"
Description Description of recipient type
2.2.1.3 Define Income Types
The income type is a classification of your (foreign) vendors according to income.
2.2.1.3.1 Use
You need the income type as a specification for the withholding tax return...
2.2.1.3.2 Prerequisites
N.A
2.2.1.3.3 Procedure
7. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Basic Settings  Define Income Types
8. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Income type Type of income subject to withholding tax
Text Description of income type
2.2.1.4 Maintain Tax Codes
The income type is a classification of your (foreign) vendors according to income.
2.2.1.4.1 Use
You need the income type as a specification for the withholding tax return...
2.2.1.4.2 Prerequisites
N.A
2.2.1.4.3 Procedure
9. Access the activity using the following navigation options:
Transaction Code OBC7
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Calculation Maintain Tax Codes
10. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries such as the length of the postal code or bank account number.
W.tax code The tax codes are unique per country
Description Text of the tax code
Off.w. tax .code Key which is used for withholding tax reporting on official forms.
Percentage subject to tax Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code
Net base for tax contributions Indicator that the taxes on sales/purchases are not used in the base amount for withholding tax.
Currency Currency of the minimum amount defined for the withholding tax report
Minimum Amount Field used define minimum tax it is used for Japan only N.A
Withholding tax rate Percentage rate used in conjunction with the withholding tax base amount to calculate the withholding tax amount
Reduced Rate Percentage rate which is to be used for the withholding tax base amount if there is a valid exemption certificate, to calculate the withholding tax amount
Withh. tax formula withholding tax is to be calculated according to a special procedure
Germ. reunification tax German Reunification Tax for the Withholding Tax N.A
Posting with payment The payment amount is reduced by the withholding tax amount posted
Region The region forms part of the address
Provincal tax code Together with the country key, the region and the withholding tax class,the fiscal province code defines a reporting key that is required for reporting withholding tax (DME) and by the tax authorities (Spain). N.A
Income type Type of income subject to withholding tax
2.2.1.5 Define Accounts for Withholding Tax
You define the account numbers of your withholding tax accounts. The system posts the tax amount to these accounts when clearing open items.
2.2.1.5.1 Use
Used for document posting in FI.
2.2.1.5.2 Prerequisites
N.A
2.2.1.5.3 Procedure
11. Access the activity using the following navigation options:
Transaction Code OBYS
IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Postings Define Accounts for Withholding Tax
12. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Transaction QST The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.
Tax code used to differentiate account determination
Account GL account no.
2.2.1.6 Define Form Names for Extended Reporting
You define the names of the forms for the withholding tax return to your vendors.
2.2.1.6.1 Use
You can use the form ID to define country-specific forms.
2.2.1.6.2 Prerequisites
Form should be there
Company code
2.2.1.6.3 Procedure
13. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Reporting Define Form Names for Extended Reporting
14. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Program name The name of the program you want to edit
Company code The company code is an organizational unit within financial accounting.
Form ID The identification for a form or a form set enables you to access a particular form or set of forms from a selected group of forms
Form Form which is to be displayed
2.2.1.7 Define Output Groups
You define the combination of outputs which is required for a given data source
You would define two output groups in Customizing:
One to define the data selection (accounts payable, etc.) and the form and file to be used.
One to define a data selection (accounts receivable, etc.) and the list to be used.
2.2.1.7.1 Use
You can for different reporting purpose..
2.2.1.7.2 Prerequisites
Form
DME Engine
2.2.1.7.3 Procedure
15. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Generic Withholding Tax Reporting Define Output Groups
16. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Process Type type of process that will be triggered by the program
Output Group Indicates the output group as used in withholding tax reporting. An output group is the combination of outputs which is required for a given data .
Customizing view withholding tax scheme in your country
Reported doc. You can choose in which context the withholding tax data is to be displayed
Open items selecting this option will allow you to see also the open items
Group item according to fiscal year items belonging to vendor/customer B are listed together with items of vendor/customer A if A is specified as fiscal address of B.
No exemptn data Excludes data relating to withholding tax exemption
No tax data Excludes data relating to taxes on sales/purchases
Title of output list focused on The output list is divided into four sections, covering Various information
Form printing Description for printing form
DME File Using this parameter, you can control whether the data medium exchange should be carried out to a temporary sequential file
Format tree Used together with the DMEE tree type to uniquely identify a format tree
Tax Ref.1 There is a parameter type for every additional parameter for a company code
Tax Ref.2 There is a parameter type for every additional parameter for a company code
User Program Your report should contain a form
2.2.2 Extended withholding Tax
Withholding tax Country
Extended withholding tax Malaysia, Singapore, Brunei, Nepal ,Thailand
Check Withholding Tax Countries
Define Withholding Tax Codes
Check Recipient Types
Define Income Types
Define Withholding Tax Type for Invoice Posting
Define Withholding Tax Type for Payment Posting
Define Rounding Rule for Withholding Tax Type
Define Withholding Tax Codes
Define Formulas for Calculating Withholding Tax
Portray Dependencies Between Withholding Tax Types
Define Min/Max Amounts for Withholding Tax Codes
Assign Withholding Tax Types to Company Codes
Activate Extended Withholding Tax
Define Accounts for Withholding Tax to be Paid Over
Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry
Define Accounts for Self-Withholding Tax
Define Accounts for Withholding Tax Offsetting Entry
Define Numbering Classes
Define Numbering Groups
Define Number Ranges
Assign Numbering Group to Numbering Class
Assign Numbering Group to Numbering Class
Numbering Concept Option 1: Assign Numbering Class
Numbering Concept 4: Assign Numbering Group
Assign Forms for Withholding Tax Certificates
Define Minimum Amounts per Withholding Tax Code
Define Output Groups
2.2.2.1 Check Withholding Tax Countries
The withholding tax country is needed for printing the withholding tax form. Since the list of country IDs prescribed by law is different from the list in the system, you have to define the withholding tax countries again.
2.2.2.1.1 Use
Used For printing the withholding tax forms.
2.2.2.1.2 Prerequisites
N.A
2.2.2.1.3 Procedure
17. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Extended Withholding Taxs Basic Settings  Check Withholding Tax Countries
18. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country Key country key contains information which the system uses to check entries such as the length of the postal code or bank account number
Withholding tax country An additional country is needed for calculating or reporting withholding tax.
Description Text of country
2.2.2.2 Define Withholding Tax Codes
If your national tax authorities use withholding tax keys to identify the different withholding tax types, you can define these official names for your tax codes here.
2.2.2.2.1 Use
System can therefore assign the withholding tax items to the correct withholding tax return.
2.2.2.2.2 Prerequisites
N.A
2.2.2.2.3 Procedure
19. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Extended Withholding Taxs Basic Settings  Define Withholding Tax Codes
20. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Official Key Official withholding tax codes are defined which must be included in official reports.
Name Description of official key
National tax code With this value you can classify every official tax key. This information is required on certain legal reports
Country Off. w/tax key Nat. Tax Code Text (40 characters)
NP COMN Commission
NP CONT Contractors
NP DIVD Dividends
NP INTR Interest
NP MANT Maintenance
NP PROF Professional
NP RENT Rent
2.2.2.3 Check Recipient Types
The type of recipient categorizes the vendor, which is necessary for printing the withholding tax form.
2.2.2.3.1 Use
To print from for vendors.
2.2.2.3.2 Prerequisites
N.A
2.2.2.3.3 Procedure
21. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Extended Withholding Taxs Basic Settings  Check Recipient Types
22. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
With holding tax type This indicator is used to classify the different types of withholding tax
Rec. Type The type of recipient can be defined in the vendor master record
Text Description of Rec. type
Country Withhld tax type Recipient type Text
NP I1 NR Non - residents
NP I1 PN Person Not Registered
NP I1 PR Person Registered
NP P1 NR Non - residents
NP P1 PN Person Not Registered
NP P1 PR Person Registered
TH I1 3 Phaw.Ngaw.Daw. 03
TH I1 53 Phaw.Ngaw.Daw. 53
TH I1 54 Phaw.Ngaw.Daw. 54
TH I2 3 Phaw.Ngaw.Daw. 03
TH I2 53 Phaw.Ngaw.Daw. 53
TH I2 54 Phaw.Ngaw.Daw. 54
TH P1 3 Phaw.Ngaw.Daw. 03
TH P1 53 Phaw.Ngaw.Daw. 53
TH P1 54 Phaw.Ngaw.Daw. 54
TH P2 3 Phaw.Ngaw.Daw. 03
TH P2 53 Phaw.Ngaw.Daw. 53
TH P2 54 Phaw.Ngaw.Daw. 54
TH W1 2 Phaw.Ngaw.Daw. 02
TH W1 3 Phaw.Ngaw.Daw. 03
TH W1 53 Phaw.Ngaw.Daw. 53
TH W1 54 Phaw.Ngaw.Daw. 54
TH WP 2 Phaw.Ngaw.Daw. 02
TH WP 3 Phaw.Ngaw.Daw. 03
TH WP 53 Phaw.Ngaw.Daw. 53
TH WP 54 Phaw.Ngaw.Daw. 54
2.2.2.4 Define Income Types
The income type is a classification of your (foreign) vendors according to income.
2.2.2.4.1 Use
You need the income type as a specification for the withholding tax return...
2.2.2.4.2 Prerequisites
N.A
2.2.2.4.3 Procedure
23. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Define Income Types
24. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Income type Type of income subject to withholding tax
Text Description of income type
2.2.2.5 Define Withholding Tax Type for Invoice Posting
You define the withholding tax type for the posting at the time of entering an invoice. This withholding tax type does not have any effect on the payment.
2.2.2.5.1 Use
The withholding tax type used for the posting at the time of entering an invoice.
2.2.2.5.2 Prerequisites
N.A
2.2.2.5.3 Procedure
25. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Type  Define Withholding Tax Type for Invoice Posting
26. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/TAX type No. By numbering withholding tax types, you can have withholding tax calculated in a particular sequence
Base amount Net amount,
Modif net amount.
Gross amount,
Tax amount ,
Modif tax amount ,
Inherit base,
Base amount Reductn the system uses the selected amount as the base amount to calculate the withholding tax amount.
Rounding rules W/Tax comm.round,
Round w/Tax amnt up,
Round w/tax amount To enable the system to calculate withholding tax, you must specify a rounding rule for each withholding tax type.
Post w/tax amount TShe withholding tax amount is both calculated and posted
Accumulation type No accumulation,
Per calendar year,
Per quarter,
Per month,
Per year ,starting with mnth
Acc. W/Tax to max. Is used to accumulated withholding tax
W/tax base manual withholding tax type, the field withholding tax base amount is ready for input
Manal w/tax amnt For document entry the field withholding tax base amount is ready for input for this withholding tax type
No cert. numbering Prevents certificate numbering
Region the region forms part of the address
Base Amount W/tax code level,
Type Level Defines the minimum/maximum withholding tax base amount at withholding tax code level.
Withholding tax amount W/Tax code level,
Type Level Defines the minimum/maximum withholding tax amount at withholding tax type level
2.2.2.6 Define Withholding Tax Type for Payment Posting
You define the withholding tax type for posting at the time of paying. You also have to enter the withholding tax information when entering the document for this withholding tax type. (Only for Thailand)
2.2.2.6.1 Use
The withholding tax type used at the time of posting.
2.2.2.6.2 Prerequisites
N.A
2.2.2.6.3 Procedure
27. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Type  Define Withholding Tax Type for Payment Posting
28. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/TAX type No. By numbering withholding tax types, you can have withholding tax calculated in a particular sequence
Base amount Net amount,
Modif .net amount.
Gross amount,
Tax amount ,
Modif tax amount ,
Inherit base,
the system uses the selected amount as the base amount to calculate the withholding tax amount.
Rounding rules W/Tax comm.round,
Round w/Tax amnt up,
Round w/tax amount To enable the system to calculate withholding tax, you must specify a rounding rule for each withholding tax type.
Cash discount W/tax pre c/dis,
c/dis pre w/tax
Post w/tax amount TShe withholding tax amount is both calculated and posted
Accumulation type No accumulation,
Per calendar year,
Per quarter,
Per month,
Per year ,starting with month,
Combined Accum
Acc. W/Tax to max. Is used to accumulated withholding tax
W/tax base manual withholding tax type, the field withholding tax base amount is ready for input
Manal w/tax amnt For document entry the field withholding tax base amount is ready for input for this withholding tax type
Self W/holding When you come to make a payment, you can then decide, on a case by case basis, whether self-withholding should apply
W/Tax alrdy w/hd the amount can be entered when you post the invoice
W/tax for Pmnt the withholding tax amount can be entered manually for incoming and outgoing payments
No.Cert. numbering Prevents certificate numbering
Region the region forms part of the address
Base Amount W/tax code level,
Type Level Defines the minimum/maximum withholding tax base amount at withholding tax code level.
Withholding tax amount W/Tax code level,
Type Level Defines the minimum/maximum withholding tax amount at withholding tax type level
Central invoice No centr.invoice,
Cent.inv & 1st p.pmt,
Central inv.prop. indicator, "Central invoicing" is not applied to this withholding tax type. N.A keep it as no.
Minimum check Minimum check at item level,
Check min base amnt at pmnt doc level,
Min .base amnt check at doc invoice level,
Amount min.check at payment doc level,
Tax exempt amount check at Document level You can select any indicator system calculate the tax and post after checking the specified base amount
2.2.2.7 Define Rounding Rule for Withholding Tax Type
You define rounding rules for the individual withholding tax types.
2.2.2.7.1 Use
Rounding rules only apply to the posting of withholding tax amounts in the appropriate company code
2.2.2.7.2 Prerequisites
N.A
2.2.2.7.3 Procedure
29. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Type  Define Rounding Rule for Withholding Tax Type
30. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Company code NP01 The company code is an organizational unit within financial accounting.
W/th .type I1,P1 This indicator is used to classify the different types of withholding tax.
Currency NPR Currency key for amounts in the system.
Unit 100 Unit to be round off
2.2.2.8 Define Withholding Tax Codes
You define the withholding tax codes rounding for calculating withholding tax.
2.2.2.8.1 Use
Used for calculating the withholding tax.
2.2.2.8.2 Prerequisites
N.A
2.2.2.8.3 Procedure
31. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Codes  Define Withholding Tax Codes
32. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
w/tax code One or more "withholding tax codes" are assigned to each withholding tax type
Off.W/Tax Key official withholding tax codes are defined which must be included in official reports
Percentage subject to tax Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code.
Post.Indic If you set this indicator tax amount is deducted accordingly
1 - Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code.
3- Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code.
With/tax rate This is the percentage rate applied to the withholding tax base amount to arrive at the withholding tax amount
With /tax rate ( fraction) Withholding tax rate counter, if the rate can be entered as a fraction
W.tax From Indicator that withholding tax is to be calculated according to a special procedure
Region The region forms part of the address
Prov.tax.code Together with the country key, the region and the withholding tax class,the fiscal province code defines a reporting key that is required for reporting withholding tax (DME) and by the tax authorities (Spain).
Income type Type of income subject to withholding tax
2.2.2.9 Define Formulas for Calculating Withholding Tax
You define formulas (scales) for calculating withholding tax. In order to use a formula for calculating withholding tax, you must enter the national currency in the Currency key field of the relevant company code.
2.2.2.9.1 Use
Used for defining the specification like from which date ,up to what amount the tax rate is applicable
2.2.2.9.2 Prerequisites
N.A
2.2.2.9.3 Procedure
33. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Codes  Define Formulas for Calculating Withholding Tax
34. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
currency Currency key for amounts in the system.
Withhld tax type This indicator is used to classify the different types of withholding tax
w/tax code One or more "withholding tax codes" are assigned to each withholding tax type
Wcty an additional country is needed for calculating or reporting withholding tax
Valid from The date valid from
To base amnt Maximum withholding tax base amount up to which the withholding tax rate specified is to be used
Whld Tax Percentage rate, which is used in conjunction with the withholding tax base amount to calculate the withholding tax amount
Red RT Percentage rate which is to be used for the withholding tax base amount if there is a valid exemption certificate, to calculate the withholding tax amount
Reduce.base amt. Amount by which the base amount is to be reduced in order to determine the withholding tax amount by means of the withholding tax rate
Dec.red.bse.amt Amount by which the base amount is to be reduced with withholding tax exemption in order to determine the withholding tax amount by means of the decreased withholding tax rate
2.2.2.10 Portray Dependencies between Withholding Tax Types
You can represent dependencies between withholding tax categories.
2.2.2.10.1 Use
You can use in a sequence of withholding tax in a sequence.
2.2.2.10.2 Prerequisites
N.A
2.2.2.10.3 Procedure
35. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Base Amount Portray Dependencies Between Withholding Tax Types
36. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/tax type no. By numbering withholding tax types, you can have withholding tax calculated in a particular sequence
Depend on type no. Sequence number of the withholding tax type whose withholding tax amount has some influence in the calculation of the withholding tax base amount
Table values
Cty Wth.t.type W/tax no. Depen.type Name
NP I1 1 Invoice posting - EWT
NP P1 2 Payment posting - EWT
2.2.2.11 Define Min/Max Amounts for Withholding Tax Codes
you define minimum and maximum amounts for withholding tax codes. In the withholding tax base exemption amount field you can specify an amount which is deducted when calculating the with holding tax base. The amount of the tax exemption does not have any effect when matching the withholding tax base with the minimum, because the base and the minimum are matched before the tax-exempt amount is deducted.
2.2.2.11.1 Use
Used for exemption amount field you can specify an amount which is deducted when calculating the with holding tax base.
2.2.2.11.2 Prerequisites
N.A
2.2.2.11.3 Procedure
37. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Minimum and Maximum Amounts Define Min/Max Amounts for Withholding Tax Codes
38. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/tax Code One or more "withholding tax codes" are assigned to each withholding tax type.
Currency Currency key for amounts in the system.
Valid from The date valid from
Minimum W/tax amount Minimum withholding tax amount. The withholding tax amount calculated if only posted if it exceeds this minimum amount.
Maximum W/tax amount Maximum withholding tax amount. If the withholding tax amount calculated exceeds this maximum, the system posts the maximum amount (and not the actual tax amount
Minimum base amount Minimum withholding tax base amount.
W/Tax bse exem.amount The withholding tax base exemption amount is deducted from the base amount before the withholding tax amount is calculated
2.2.2.12 Assign Withholding Tax Types to Company Codes
You assign withholding tax categories to company codes.
2.2.2.12.1 Use
To work with withholding tax .
2.2.2.12.2 Prerequisites
Company code
Tax code
2.2.2.12.3 Procedure
39. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Company Code Assign Withholding Tax Types to Company Codes
40. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Company code The company code is an organizational unit within financial accounting.
Withhld tax type This indicator is used to classify the different types of withholding tax.
Recipient type The type of recipient can be defined in the vendor master record
With/tax agent you tell the system that for this withholding tax type, the company code is entitled to withhold tax on behalf of a vendor
W/Tax obligated from Date from which.The company code is obligated to withhold tax for the given withholding tax type
Oblig. to W/Tax Until Date to which. The company code is obligated to withhold tax for the withholding tax type.
W/tax Number This is a number issued by the tax authorities per withholding tax type.
Subject to W/tax you tell the system that the company code for this withholding tax type is subject to withholding tax.
Self Withhldg agent the company code can withhold tax on its own behalf for this withholding tax type
Wxeption number Numbered assigned by the relevant authorities for exemption from withholding tax.
Exemption reas. used to classify different types of exemption from liability to a particular withholding tax.
Exemption rate Rate of exemption from withholding tax.
Exempt from Date from which withholding tax exemption applies.
Exempt to Date up to which withholding tax exemption applies.
2.2.2.13 Activate Extended Withholding Tax
You can activate extended withholding tax.
2.2.2.13.1 Use
To work with extended withholding tax.
2.2.2.13.2 Prerequisites
Company code
2.2.2.13.3 Procedure
41. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Company Code Activate Extended Withholding Tax
42. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Company code The company code is an organizational unit within financial accounting.
Extended w/tax You select this indicator; you activate extended withholding tax processing.
2.2.2.14 Accounts for Withholding Tax to be Paid Over
You define the accounts for the withholding tax to be paid over.
2.2.2.14.1 Use
Used for posting extended withholding tax.
2.2.2.14.2 Prerequisites
Tax code
GL Account must exist in company code
2.2.2.14.3 Procedure
43. Access the activity using the following navigation options:
Transaction Code OBWW
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Accounts for Withholding Tax Accounts for Withholding Tax Define Accounts for Withholding Tax to be Paid Over
44. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Transaction WIT The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.
Withholding tax type Indicates a grouping of valuation areas to facilitate the administration of the table of standard accounts by minimizing the number of entries.
Withholding tax code Key which has a different meaning depending on the procedure. It is used to differentiate account determination.
Account The G/L account number identifies the G/L account in a chart of accounts.
2.2.2.15 Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry
You can define the accounts for the withholding tax offsetting entry for the "grossing up" procedure .
2.2.2.15.1 Use
Used for posting extended withholding tax.
2.2.2.15.2 Prerequisites
Tax code
GL Account must exist in company code
2.2.2.15.3 Procedure
45. Access the activity using the following navigation options:
Transaction Code OBWU
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Accounts for Withholding Tax Accounts for Withholding Tax Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry
46. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Transaction GRU The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.
Withholding tax type Indicates a grouping of valuation areas to facilitate the administration of the table of standard accounts by minimizing the number of entries.
Withholding tax code Key which has a different meaning depending on the procedure. It is used to differentiate account determination.
Account The G/L account number identifies the G/L account in a chart of accounts.
2.2.2.16 Define Accounts for Self-Withholding Tax
You can define the accounts to which withholding tax is posted.
2.2.2.16.1 Use
Used for posting extended withholding tax.
2.2.2.16.2 Prerequisites
GL Account must exist in company code
2.2.2.16.3 Procedure
47. Access the activity using the following navigation options:
Transaction Code OBWS
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Accounts for Withholding Tax Accounts for Withholding Tax Define Accounts for Self-Withholding Tax
48. On the Overview screen, make the following entries: -
Hi All,
Please i need to know how i can implement the following:- i want to implement tax in an Invoice document in such that i can deduct 2 separate tax and also Witholding Tax at Payment level. i. e .
1. VAT - 5% of Net at Invoice Category -> link to Account 210012
2. CAB - 2% of Net at Invoice Category -> link to Account 210015
3. WHT - 5% of Net at Payment Category -> link to Account 110023
Pls Help am using 8.8 UK Version.Hi Adegoke,
If you get creative, you could use the Freight1, 2, 3 fields on Sales Order (turn them on through Form Settings). Create FMS queries and add percentage here as tax you want. These colum perdentage taxes get added to the total and show up in total along with other Freight line at the bottom of the form.
Ctrl double click onthe form columsn Freight 1 etc and rename to what you want. -
UK Tax on Sales/Purchases; why open items are shown in S_ALR_87009895?
Hi,
I am not used with the Tax on Sales/Purchases UK authorities but as far as I know, only closed (paid) items must be reported in the Tax on Sales/Purchases report.
I expected that the report S_ALR_87009895 - Advance Return for Tax on Sales/Purchases only includes the closed (already paid) invoices and expected also that the report S_P00_07000189 - Add. List for Advance Return for Tax on Sales/Purch.: Tax on Open Invoices will show the invoices that has not been paid after six months.
Unfortunately report S_ALR_87009895 is showing the paid invoices and the unpaid ones.
Does any body knows if my approach about UK tax reporting is correct and why those reports are not working as I expected?
Thanks in advance!!!Sorry, S_P00_07000189 - Add. List for Advance Return for Tax on Sales/Purch is working well, the other one S_ALR_87009895 - Advance Return for Tax on Sales/Purchases is not working as expecter.
Can anybody help us?
cheers -
Report to check Taxes before posting invoice to accounting..
Hi All,
Could you please help me if there are any report to see the taxes before the invoices are posting to accounting?
If we dont have it in invoice level then its ok if we can check the taxes at sales order level.
In sales order i undestand we can check in VBAK-Doc Condition field pull the sales order to KONV to enter the Doc condition # that shows all the condition types and values.
However, this does not show the sales order number and it wont be helpful at user level.
Hope there should be some standard report for this function and seeking help here.
Thanks in advance
Best Regards,
RamHi Ram
Instead of letting users report on taxes, rather tighten up on controls within SAP:
1. Make tax condition types mandatory in the pricing procedure(s)
2. Configure the tax condition types such that only automatically determined values are allowed
3. Ensure that you have tax condition records to deal with all eventualities (including zero value condition records).
HTH
James -
Subject:-Tax reduction in invoice is not possible at the time of LIV when c
Dear SAP expert
Subject:-Tax reduction in invoice is not possible at the time of LIV when corresponding order is closed.
While carrying out the LIV of vendor invoice against service entry sheet , ERROR message of Order xxxxxxx created in PM module is closed. Main reasons for the same is Service tax at time of service entry sheet is 12% and at the time of invoice verification it is 3.96% and reduced tax amount is credited to order. Which we can say is restricted as after Order closure cost cannot be changed on order.
Is there any solution available?
s apHi,
In response to your requirement:
let me clear my business scenario...
total price of po is usd100 and sales tax is 20%.
system calculate sales tax separate the reason being the codition type for sales tax is statistical.
is it possible that the value of sales tax included in the PO net price but not calculate at the time of GR.
Regards,
Ali
This is very much possible. Include your tax condition type in the calculation of net price and make this tax as deductible.Donot assign NVV key to it.
Also donot make it statistical as you want to include it in the net price calculation.
Thanks,
Atal -
Hi, I am trying to configure the auto calculation of taxes on an AP invoice, but the system is not auto calculating.
I created a new tax process that is marked with posting indicator "distribute to relevant expense". However there is no auto generation or auto calculation when i try to key an invoice via FB60 when i check the calculate box.
Please help
Thanks
BrianSantosh: I checked the "sales/purchase tax" box under the control tab. Is this what you meant? Right now Withholding tax is not activated? DO you want me to activate that? Recepient is not in the Tax on Sales/Purchases config, but it is in the withholding config..please help
thanks
Brian -
TDS on Sales Invoice and TDS on Advance Payment
Hi All
Can any one explain the below WHT scenario.
"If we get advance payment from customer and after some time (15days) we have posted an sales invoice against him. Now on which amount we have to deduct TDS. (At the time of Advance from Customer we have deducted TDS).
Again we have to deduct TDS on Sales Invoice or not?
Thanks
ChandraHi Chandra,
First of all, TDS means Tax Deduction at Source and so it does not apply to receipts from customers. It applies only in case where we pay to our vendors. While we receive the payment from our customers, its the customer who deducts the TDS and not we. We only book the total Invoice that we book as revenue and take the TDS certificate at the end of the year from the customer and submit it to the IT dept. By submitting the TDS certificates, we need not pay tax to the extent of TDS certificates.
So its only when we make advance payment to our vendors/sub-contractors or while booking the invoice of our vendors (whichever is earlier) that we have to deduct TDS.
Hope you understand this. Kindly revert if u need further information.
Regards,
CA. Karthik Narayan N S
SAP-FICO Consultant
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