Withholding tax code xx is not permissible- Message no.F5395

[former_member313602]

Hi,

We recently implemented 1042 process for international vendors for with holding tax as per regulation. we updated the vendor master with tax code to withhold 30% and it works perfectly fine at the time of F110 payment and the Invoice will be updated with the "with holding tax base" and also with the tax code, and able to print the 1042 form and it shows proper dollar amounts.

The issue is, we need to update the invoices with Withholding tax code which are already paid(cleared) as we did not update the vendor master at that time because new functionality was not started. Lets say we implemented the process in July 2014 after July 2014 invoices being updated automatically because of the configuration. but we want to update all the invoices ( already paid) from Jan 2014 to June 2014. therefore we went to vendor items and tried to update the with holding tax base and the tax code so that it can be picked up at the time of 1042 printing. and we  are receiving above error.

I tried to run RFWT0020  program for Invoices and Payments for this use but it ran empty for those vendors. This program works fine for 1099 vendors.I believe this program is not useful for 1042 vendors and can not update the invoices which are already being paid without withholding tax.

Is this possible to apply the tax code & withholding tax base for the invoices which are already being paid without withholding tax? or is this because we did not withhold the amount at that time in to our GL account and we can not be able to pay IRS and therefore system is not allowing us to update the tax code on the invoice level? I request for some confirmation on this I believe we can not update the docs which are already paid with withholding tax info.

Thanks,

Vamshi K

[former_member198650 · Accepted solution]

Hi Vamshi,

The program which you have used for update 0% with holding tax rate. Actually you have to use the program RFWT0010 for update withholding tax details. But the program is used for update the data only for open items not for cleared items. Hence you cannot update the details for cleared documents.

Regards,

Mukthar

[former_member313602 · Accepted solution]

Thank you Mukthar,

if I want to conclude ( below screen shot) this, I can not manually update the a cleared vendor invoice in FB02 with WHT code and amount and this can be due to system limitation as we did not withhold % tax at that time of F110 run , can be due to vendor master was not updated, if it was a pure open item yes we can update.

Thanks,

Vamshi K

[former_member198650 · Accepted solution]

Hi vamshi,

You can run the program RFWT0010  for update withholding tax details for the vendor, which does not have the details.

Regards,

Mukthar

[former_member313602 · Accepted solution]

Thanks Mukthar.

This thread is answered. much appreciated.

Thanks,

Vamshi K