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Withholding tax Base-..percentage subject to tax decimal places

Mar 24, 2017 at 06:57 AM

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Former Member

Hi All

My client accounts for input tax as part of the expense and does not post input tax separately as most companies do. However they must calculate and post WHT tax at payment from the net amount . This means that I have to calculate the net amount again before tax.

For example : vendor invoice amount = 116, 000 inclusive of 16% VAT thus the net amount is 100,000. For my client posting this means DR expense 116,000 CR vendor 116,000. But during payment WHT of 6% is due on the net amount of 100,000 . Thus i calculate 100/116 to get 0.862068966 X100 = 86.2068966 as the percentage that is subject to WHT tax. Because of the decimal places in SAP i can only do 86.21 and created a rounding rule to the nearest 100.

This configuration works for small figures but not for very large invoice amounts. Is there anyway I can increase the decimal places for WHT tax without going to OY04 for currencies or define a formula in SAP Extended WHT or does this mean I have to do a Z for this?

Payment is through F110 so not much can be done to modify the base amount manually.

Kindly assist

Joe

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