on 11-07-2013 4:47 AM
Hello All,
Good Day!
We have Withholding Tax activated for Argentina. We have created 1 Withholding Tax Type and 19 Withholding Tax Codes. Now these taxes are applicable from 1st September 2013, but there was some delay in creating the Withholding Tax Codes. Now the Vendors MIRO has been done and the Codes were created after the MIRO. Then through LSMW I have updated the Vendor List with Withholding Tax Code and Tax Type.
I have a question here is, whether this Codes have been updated in Open Items of Vendors also? If yes, whenever I will make payment to Vendor, will this Withholding Tax will deducted from that Base Amount?
I will appreciate for your answer! Many Thanks,
Regards,
Pritesh Praveen Lodha
Hello Pritesh,
Wth tax will not get deducted at the time of payment. the deduction happens only at the time of invoicing or execution of MIRO.
best regds
Subha
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hello Subhadeep,
Good Day!
I agree with your comment, but when I execute the payment process through FBZ2 - Post Out going Payment, system pops an error that:
"The Line Item is not selected as it has Inconsistency in Withholding Tax Data"
For this I have searched the SCN and I got a Thread:
http://scn.sap.com/thread/1683223, wherein peope say that execute the program: RFWT0010 in SE38 and this will solve the issue. I did this and the issue is resolved, but I can run this in Quality but not in Production.
My Question is, whether there is any alternative for this?
Many Thanks for your Answer,
Regards,
Pritesh Praveen Lodha
Hi Pritesh,
The witholding tax deduction happens based on your configuration.. it can be either at the time of Invoice.. or at the time of payment or whichever is earlier..
What is applicable for Argentina? and what configuration is done.. you need to check..
Tay type and tax codes are updated in the vendor master in Witholding Tax tab.
In case it is applicable at the time of Invoice, then you need to reverse your MIRO and repost it again for TDS to be posted.
In case it is applicable at the time of Payment, then if TDS tax type and code are maintained in vendor master then TDS will get deducted at the time of payment.
BR,
Kavita
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hi Pritesh,
That is because you have updated Vendor master with TDS codes and that vendor already had open line items before..
Use Report RFWT0010, to adjust the with holding tax information on the open line items.
When you get error click on the long text and SAP will suggest the name of this program in the long text..
Good Luck and share the results..
BR,
Kavita
Thanks for clarifying kavita
Regards
Prasad
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hi All
I have a small query
Imagine if my withholding tax type is at the time of posting. Vendor is assigned with WTH tax code of XI at 10% and document got posted on 01.11.2013. on 07.11.2013 there is a change in the withholding tax and i have removed previous withholding tax code in vendor master data and assigned new withholding tax code of XB of 11 %. how the program RFWT0010 will make adjustment.
I suppose it will not have any impact on the posted line items in case of WTH tax at the time of invoice posting
Please advice
Thanks
Prasad
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hi Prasad,
This report is used when you change the witholding tax type and the title of this program also suggest the same : Adjustment of Witholding tax information to Relevant types.
If the rates(tax code) are changed it has a financial impact and you will have to give impact by way of reversal of previous entry and posting a new one with correct rate
In vendor master, if you change the tax code only, I guess you will not get this error, whereas if you change the tax type you will get inconsistency error if already open items are present for that vendor..Check this out in your test system.
Hope this clarifies..
BR,
kavita
Hi Pritesh
What is the WTH tax type that you have created. Is it with holding tax at the time of payment? If so ,once you update the vendor master records with withholding tax codes no tax will be deducted at the time of posting Tax will only be deducted when you make payment
Hope this will helps you
Thanks
Prasad
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hi Friend,
There is two withholding tax type, one is at the time of invoice and second one is at the time of payment, if you have configured the withholding tax type for payment posting , system will calculate the withholding tax at the time of payment. You can update the tax code at line item before processing payment.
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hi Friend
We couldn't consider the standard SOP here, the case is different, they have already booked without withholding tax , so here in this case they are supposed to do this at the time of payment. System will not check whether it is a advance or not . system need to have a withholding tax code at the time of payment to process payment with withholding tax either at the time of creation of down payment request or we have to change the open item.
User | Count |
---|---|
89 | |
8 | |
7 | |
4 | |
4 | |
3 | |
3 | |
3 | |
3 | |
3 |
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.