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EWT confing - Difference FI & A/R - A/P

Former Member
0 Kudos

Dear All,

We just want to know what is the difference between EWT,which comes under Financial Accounting Basic Setting(New) and the EWT which falls under the head of A/R & A/P > business Transaction > Incoming Invoice and Cr memos > Carry out and check setting for WITHHOLDING TAX.

Also let me know exactly in place the A/P EWR is useful or what is the purpose of the EWT in A/R &A/P.

Actualy we want to calculate TDS on interest from Customer deposited received by us.

But when we assigned the tax code(which was created in FA EWT) to customer master,the system does not calculated the TDS.We used the formula (in the above mentioned tax code),as we want to calculate TDS only if the payable amount is more than Rs.5000.

Do suggest how to acheive our requirement.

Regards,

Accepted Solutions (1)

Accepted Solutions (1)

m_madhu
Active Contributor
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HI,

FI...EWT is relates to withholding tax functionality (In india TDS).

FI A/r- A/p business Transaction > Incoming Invoice and Cr memos > Carry out and check setting for WITHHOLDING TAX.

is relates to classic withholding tax hence please don't refer.

AR and AP EWT is used for dedcuct withholding tax.

please maintain the withholding tax code and type in customer master then it will deduct the w/tax .

If w/tax is not calculating then please check the configuration and FSV (field status valriant) at OB14 and OB41.

Please use the formula and Accumulation for required functionality.

Reg

Madhu M

Former Member
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Dear ,

Can anybody clarify our doubts.

Regards

former_member213733
Active Contributor
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Hi ,

Looking at the issue that you have raised there are 2 parts in to it :

- what is the diffrence between the two nodes of wihthoding tax that you have mentioned .

- you want to create a tax code for interest on deposit from consumers .

First of all the the diffrence between the two nodes is that the node that you have referred that is accounts receivable and payable - business tras. - withholding tax . that is for classic withholding tax that was applicable to prior verion now SAP has come up with Extended withhholding tax functionality which is having better functionalities as compared to classic witholding tax .

secondly the TDS code that you have created for the consumer , you are saying that it is not deducting the amount in that case pl. check the following :

while assigning the with holding tax to co code you have put a tick on the agent as consumer .

for calculating the tax on TDS to be payable if the amount is more than 5000 in that case you can make user of the formula function provided by SAP for the same .

Hope now the things are clear for you , do revert back in case you are stuck up somewhere or are unable to find the right configuration node for the same .

Cheers ,

dewang

Answers (1)

Answers (1)

Former Member
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Issue solved