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Wtax amount in journal entry is in credit side

Jun 29, 2017 at 03:33 AM

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Former Member

I'm creating journal entry and manage wtax is ticked mark. After selecting and putting an amount on the withholding tax table the entry was always on credit side. Is this normal? I want to be in debit the withholding tax. Is there a configuration I missed?

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4 Answers

Balaji Selvaraj Jun 29, 2017 at 04:09 AM
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Hi Precious,

Since its payable and so you record it as a liability. So it will be credited.

If you want to debit the withholding tax then can you explain the scenario and share screen shot of the entry.

Regards:

Balaji.S

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Nagarajan K Jun 29, 2017 at 04:48 AM
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Hi,

Suggest you to check with your company Financial consultant to post above journal entry.

Regards,

Nagarajan

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Former Member Jun 29, 2017 at 04:45 AM
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Balaji,

Is it safe to say that this behavior is normal?

The withholding tax GL account of the client is under asset. I'm using the JE module is because the I want to adjust my open AR to be the withholding tax. We did not use the wtax table on the AR invoice due to requested by the client.

I want to use the manage wtax on the JE for our customized report to include this on the entry.

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In case of adjusting with AR , you need to debit the withholding tax.

Regards:

Balaji.S

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Former Member

Yes, That is also I'm expecting entry but when using the manage wtax on the JE it will automatic put on the credit side. Is this normal with SAP? I'm using Australia localization.

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Had you selected the row level WTax liable as 'Yes'. In Journal entry if you had assigned the tax then it gets credited. Not withholding Tax GL.

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Former Member

I have already assigned and still the amount is still on the credit side not on the debit side.

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Can you share the screen

tds.jpg (56.7 kB)
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Former Member

Did you try to right click then select the WtAx code for this transaction? My JE adjustment is should be the amount of the Customer. Please below the entry I want in JE

Debit: Withholding Tax

Credit: AR

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No i didn't right click for selecting WtAx code. If you had tick mange wtax and at row level you need to select the Wtax liable yes. System will pop for the confirmation for Withholding Tax deduction. Further add the JE. It will be deducted at Incoming payment entry.

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Former Member

I also did that but still the amount is on credit side. Is this normal behavior of sap?

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Share you screen

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Former Member

This is the screen shot

As you have noticed, Prepaid taxes was automatic on the credit after I assigned the wtax code. I want it on the debit side to balance this JE.

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There is no attachment.

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Former Member
je.png

Please see attachment

je.png (27.3 kB)
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Hi Precious,

You had trying the withholding tax with category as 'INVOICE' and in journal entry you had entered value on credit for customer and as a result withholding tax gets credited in JE

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Once you select Cus-001 in the row filed Wtax Liable will be blank. Only in offset account you will be able select Yes/No in Wtax Liable field.Withholding Tax ledger will not appear. in JE.

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Former Member

Is it normal the entry is on the credit side? There will be a difference when I change it on payment? I will try this.

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Former Member Jun 29, 2017 at 04:58 AM
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I will. I terms of SAP B1 behavior. Is this normal?

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I am using India Localization here Manage wtax option at Journal entry is not available. But for adjusting with AR you need to debit the withholding tax.

For further AR entry, In withholding tax setup please assign category as Payment this will not deduct with holding amount at Invoice but later at payment it will deduct.

Regards:

Balaji.S

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