error at Withholding tax

[Former Member]

Hi,

I am calculating withholding tax on down payment. At the time of down payment the system has calculated WHT properly and i have also posted invoice, then also system has calculated WHT. I want to clear this down payment against invoice. As per my knowledge the system should reverse the entry of with holding tax at the time of down payment. I do cleared the down payment in f-54 and then i tried to clear the payment aganist invoice in f-44.

But the system is giving error as " With holding tax invormation ignored"

Msg no. 7Q332

Diagnosys: the activity selected uses posting keys that are bit oayment relevant. This means WHT was not processed even though documents with WHT information were selected. Start the transaction again with new activity so as to include the WHT information for the document selected.

System response: In customizing you can swithoff the msg under change msg control for document processing in application &Q.

Procedure: check to see whether you can use a different activity or another transaction (FB05)

Could any one tell me if i change the msg control, does this WHT will calculate properly? I checked all the settings and fields status for all the posting keys which were triggered in these transactions.. But no use..

Could any one help me in this issue.

Thanks in Advance

Sabera

[Former Member · Accepted solution]

Hi,

Could anyone help me in this issue? got struck with this.

Regards

Sabera

[Former Member · Accepted solution]

Hi

If you have not done the Configuration settings for the Reversal of TDS in F-54 follow these steps.

1. Create Business Place

2. Create Section Code

3. Assign Factory Calendar to Business Place

4. In Define Withholding Tax Type for Payment Posting, change the option to Central Invoice Prop.

Advance or DownPayment :

Use Transaction F-48 to make Down Payment, if you make a Down Payment Request through F-47, then you can make Down Payment either by F-48 or by running APP F110.

Invoice :

You can use any Transaction F-43, FB60, (Park -->F-63,F-65 & Post FBV0)

F-54 :

Here in the Entry Screen give the Invoice Number and in the next screen select the Down Payment Document and Double Click then check the last Column, you must get that Amount in that Column and then Simulate, You will see the TDS Amount will be Debited(Reversed).

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The Reversal will not happen for Earlier Down Payment Documents, as they are posted with earlier configuration.

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While assigning withholding Tax Types and Withholding Tax Codes in Vendor Master, kindly make a NOTE.

Give the Withholding Tax Type and select the Liable CheckBox and do not give Withholding Tax Code, leave it Blank.

While making Down Payments or Invoices, you will get a PopUp Box and there you select the Tax Code by pressing F4.

This is the Best Practice.

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Hope this makes you a clear picture.

Regards

Venkat

[Former Member · Accepted solution]

Hi,

Thanks for your valuable inputs. I have done all the settings whatever you mentioned in your replies. Previously when i did f-54, the system has not reversed the tax entry. As i have not entered the business section at the time of invoice, this might have happened. Once i enter the business section at the time of down payment and invoice, it is working fine.

Thank you all for your valuable information.

Regards

Sabera

[sanilbhandari]

Hi

Check in the With Holding Tax Type for payment if the radio button for Central Invoice: Ditribute with holding tax propotionately has been maintained or not.

regards

Sanil Bhandari

[Former Member]

Hi

At the time of Down Payment Withholding tax is deducted & at the time of Invoice Withholding Tax id deducted.

1. There is a standard SAP functionality, that when you run APP F110 System will automatically Debit ( ie Reverse) that Withholding Tax Amount deducted at the time of Down Payment.

2. There is a possibility of Reversing that Withholding Tax deducted at the time of Down Payment in an Earlier step to F110, in F-54.

F-44 has nothing to do with Withholding Tax Reversal. You will get an Information message, With holding tax information ignored.

You can Ignore that message and proceed.

You mentioned that you have done F-54, does the Withholding Tax Reversal happened?

If the Withholding Tax is not Reversed then you need to do some Configuration.

Let me know abt it.

Regards

Venkat