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FI-CA Simple Withholding Tax (Customer withholds) - Credit Memo Clearing

ivor_martin
Active Contributor

‎04-27-2018 2:16 PM

0 Kudos

Hello Colleagues,

I have configured Withholding Tax for Interest receivables with Setting value = 1 (Customer can withhold).

I have also configured the withholding tax code percentage and enabled Withholding tax upon payment (checkbox).

When I post the Interest, the Withholding Tax code is populated on the Interest document. At the same time, a Statistical Credit memo (Stat Key "Q") is created for the amount of the withholding tax (based on my Withholding Tax percentage).

When I pay the Interest document, it just pays the Interest amount, and the credit memo is intact.

When I try to use Account Maintenance to clear the Statistical credit memo, it says the difference is too large to be cleared (even though the debit = credit amounts).

Is there a step that needs to be performed that I'm not aware of?

Your feedback would be really appreciated.

Thanks and regards,

Ivor Martin

2 REPLIES 2

ivor_martin
Active Contributor

‎05-04-2018 9:56 AM

0 Kudos

Hello colleagues,

Does anyone have any suggestions on a convenient way to clear a statistical Withholding Tax Credit memo when the the linked receivable is being paid?

Currently (while Payment is being made), the User has to select the statistical credit memo as well as the associated open debit in order to post to the Withholding Tax G/L Account.

Your feedback would be really appreciated.

Thanks and regards,

Ivor Martin

former_member355631
Member

‎12-19-2019 6:25 AM

0 Kudos

Hi Ivor Martin,

We have a scenario where the full invoice will be posted to Business Partner and Business Partner is expected to withheld tax while making the payment. The invoice value will show the GST value separately so that the withheld tax will be calculated on the base amount only.Entry when the invoice is posted:

Business Partner Debit 1000

GST Credit 100

Sales Credit 900

Entry when the Payment is received:

Bank Debit 982

TDS Debit 18

Business Partner Credit 1000

So could you please help understanding how the above scenario will be handled in SAP FICA.

I had read through to the below link as well but not able to visualize the transaction posting with statistical key.

https://help.sap.com/viewer/b64694f3b2ba41958692ce2b1e183137/1909.000/en-US/8a10c5536a51204be1000000...