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WHT Minimum base amount at the time of Cut Over

Apr 26, 2017 at 06:06 PM

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Former Member

Hello Experts,

There is an option in WHT customization to maintain minimum base amount as per withholding tax code. As we are going live in the middle of year so we want to maintain it at vendor level.

For Example;

Minimum base amount maintained at 40000

Vendor 1 Total Purchasing till Go Live date = 38000

Vendor 2 Total Purchasing till Go Live date = 20000

Hence, if we set minimum base amount at tax code level, all the purchasing after Go live will not consider previous purchases till go live..

Regards,

Rash Bharmal

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1 Answer

Marssel Vilaça
Apr 27, 2017 at 10:06 AM
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Hi Rashida,

You can set up tw wht tax codes as per your minumum base amount requirement. Then at vendor master data tab: WHT you have to assign both codes. Withholding tax at vendor level can control exemption from/to date enabling intervals of tax calculation.

Best Regards

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Former Member

Hello Marssel

Highly appreciate your response but my point was slightly different.

We are planning to Go Live in middle of the year. Suppose, we have 1 WHT code i.e. K1 4% with minimum base amount 40000. Whenever vendor bill amount exceeds 40000, system will deduct income tax on cummulation.

Bill 1 = 25000 'No impact on income tax'
Bill 2 = 35000 '4% will be deducted on 60000 = 2400'

We have 40,000 minimum base amount WHT applicable for all the vendors but somehow vendors have different utilization with reference to minimum base amount;

Vendor 1 = 28000 trading till Go Live
After Go live, we receive vendor invoice 15000 'Standard practice system will not deduct WHT tax but if we cummulate whole year trading it should be deducted on Rs. 43,000/- 4% tax =1720 Tax'

Vendor 2 = 55000 trading till Go Live

Vendor 3 = 38000

Is there any way in SAP to upload these vendors utilization 'trading till go live date' in SAP with respect to minimum base amounts.

Hope I have clarified my requirement.

Regards,

Rash Bharmal

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Thanks Rashida,

If I understood right, the problem is before go live you have no Invoice amount cumulated in table WTAK. OK? Thus WHT isn`t posted because the base amount limit.

You may try to run report RFWT0020 or check the option to migrate all Invoices after go live in order to take place on acumulation.

*if you want you know more how WHT acumulation works you can check sap note https://launchpad.support.sap.com/#/notes/1787203/E

Regards

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