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With holding tax formulae considering invoice and down payment

Hi FI Gurus

My query is about with holding tax for India based client. I have configured formulae for with holding tax calculation, as follows

WH Tax type for invoice posting:- IC ( accumulation type is selected in config )

WH Tax type for payment posting:- AC ( accumulation type is selected in config )

WH Tax code E1

WH Tax type IC + WH Tax code E1 + WH Tax country IN   ( TDS Rate 0 - 5 million 5%, > 5 million 10% )

WH Tax type AC + WH Tax code E1 + WH Tax country IN  ( TDS Rate 0 -5 million 5%, > 5 million 10% )

When I post vendor invoice ( FB60 ) or down payment ( F-48 ), System correctly calculates WH Tax amount. BUT issue is - SAP is not adding amounts for vendor invoice and down payment while calculating WH Tax.

Vendor invoice of 3.5 million is posted followed by vendor down payment of 2 million. SAP calculates  WH Tax of 175k and 100k respectively. BUT client wants that SAP should add invoice and payment amount, and calculate WH Tax 125k at time of vendor down payment posting in above scenario. Please tell how we can achieve this.

If another invoice of 2 million is posted, SAP calculates WH Tax of 125k which is ok.

-Thanks

Kapil

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1 Answer

  • avatar image
    Former Member
    Nov 04, 2015 at 11:57 AM

    Hi Kapil ,

    As per my knowlideg System calculates the WHT whether Invoice or DOwn payment which ever is first . 

    if you post the Invoice first then system will dedut the WHT on the Invoiceor if you post down pay,mnet then

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    • Hi

      Thanks for feedback.

      Timing of WHTax is not the issue. Problem is  about calculation of with holding tax at time of down payment or invoice, whichever happens latter.

      Client wants sap system to add invoice and payment amounts and then apply formulae for WHT calculation. Currently sap is separately applying formulae for iv & payment posting, but it is not adding them.

      formulae is:

      0-5 million TDS Rate 5%

      > 5 million TDS Rate 10%

      -Regards

      Kapil