Extended Withholding Tax - Minimum Amount

[rane_prashant]

Dear SAP Expert,

In our setup we have extended withholding tax incoming payment for outgoing invoices.

The scenario is if invoice base amount is less than 300 EGP (local curreny) then withholding tax information should not capture invoice document.

I setup minimum based amount on withholding tax type and withholding tax codes level but still when user post outgoing invoices WHT information is captured in FI document.

Because of above issue automatic clearing (F.13) is not happening and we are getting error message like "Items with withholding tax code for customer subject to withholding tax"

looking for expert assistance.

B/R

Prashant Rane

[m_madhu · Accepted solution]

HI,

The Vendor document is different with the customer document in SAPF124.

The error message you mentioned is produced by the following reason:

Generally a clearing of customer open item with withholding tax

is not possible in SAPF124. If you already have withholding tax data in

the open item.

In this case a payment transaction has to be used for clearing, as

explained in note 442588. But SAPF124 is executing a call transaction

FB1D, which is a pure clearing transaction. In pure clearing

transaction as FB1D the witholding tax is not calculated.

Hence it is not possible to clear customer line items with withholding

tax in SAPF124.

Regards

Madhu M

[rane_prashant · Accepted solution]

Dear Madhu,

OK understood.

Now my question when I post Invoice which is less than 300 EGP then system should not captured any WHT information in FI document, because the requirement is WHT applicable only for those invoices which are above 300 EGP

Any recommendation on customizing?

Thanks in advance

B/R

Prashant Rane

[srinivasa_maruvada · Accepted solution]

Check at

SPRO-Financial Accounting (New)-Financial Accounting Global Settings (New)-Tax on Sales/Purchases-Withholding Tax-Extended Withholding Tax-CalculationMinimum and Maximum Amounts

Srinivas

[rane_prashant · Accepted solution]

Dear Srinivas,

I did this setting in customization but still when I post invoice WHT information is stored.

Any other options?

B/R

Prashant Rane

[Former Member]

Hi

Financial Accounting

Financial Accounting Global Settings

Withholding Tax

Extended Withholding Tax

Calculation

Withholding Tax Codes

Define Formulas for Calculating Withholding Tax

In this path, select assign all the fields corresponding currency, tax type, tax code, valid from (date). And select the row which one you want assign this condition.

double click on formulas for calculating withholding tax, system give message enter

eg:

To Base amount with holding tax

10,000.00

9,999,999,999,999.00 10.00

If you assigning like , while doing invoice system can calculate only crossing the amount 10,000. If it is less than 10,000 it will not appear. Do it and revert me any queries

Regards

Mani.S

[rane_prashant]

Dear Mani,

Thanks for assistance.

from your example I understand if invoice amount is less than 10,000 then WHT should be applicable.

In my example min invoice amount is 300 EGP

where 2 % WHT is applicable

I wanted to know in which below field I should enter 300 EGP (from your example 10,000)?

Calculation > Withholding Tax Codes > Define Formula for calculating Withholding Tax:

Currency u2013 EGP

W/Tax Type u2013 I2

W/Tax Code u2013 P2

Valid from u2013 01.01.2009

To base amount - 999,999,999,999

W/Tax Rate u2013 2%

Reduced Withholding Tax Rate for Exemption u2013 BLANK

Reduction of Base Amount u2013 BLANK

Decreased Reduction of Base Amount - BLANK

-

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Below is complete customizing I did in my setup

-

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Financial Accounting

Financial Accounting Global Settings

Withholding Tax

Extended Withholding Tax

Calculation > Withholding Tax Type > Define Withholding Tax Type for payment posting:

Withhld tax type u2013 I2

Base Amount u2013 Net Amount

Accumulation Type u2013 No accumulation

Control Data u2013 W/Tax base manual, manual W/tax amnt, w/tax for payments, no cert. numbering

Base amount u2013 W/tax code level

W/tax amount - W/tax code level

Minimum check u2013 Min. base amnt check at doc invoice level

Post W/Tax Amount - YES

Calculation > Withholding Tax Codes > Define Withholding Tax Code:

Withhld tax type u2013 I2

W/tax code - P2

Base Amount u2013 Pecentage subject to tax 100%

Postings Indic- 1

Calculation u2013 W/tax rate u2013 2%

Calculation > Withholding Tax Codes > Define Formula for calculating Withholding Tax:

Currency u2013 EGP

W/Tax Type u2013 I2

W/Tax Code u2013 P2

Valid from u2013 01.01.2009

To base amount - 999,999,999,999

W/Tax Rate u2013 2%

Reduced Withholding Tax Rate for Exemption u2013 BLANK

Reduction of Base Amount u2013 BLANK

Decreased Reduction of Base Amount - BLANK

Calculation > Withholding Tax Codes > Minimum and Maximum Amounts

Min / Max Amounts for W/Tax Type

W/Tax Type u2013 I2

Currency u2013 EGP

Valid from u2013 01.01.2009

Min W/Tax Amount u2013 60

Max W/Tax Amount - 999,999,999,999.00

Min base amount u2013 300

Min / Max Amounts for W/Tax Code

W/Tax Type u2013 I2

W/Tax Code u2013 P2

Currency u2013 EGP

Valid from u2013 01.01.2009

Min W/Tax Amount u2013 60

Max W/Tax Amount - 999,999,999,999.00

Min base amount u2013 300

W/tax base exem amount u2013 BLANK

Company Code > Assign WHT Tax Type To Company Code:

Company Code u2013 0011

W/Tax Type u2013 I2

Customer Data u2013 Subject to W/Tax

[rane_prashant]

Dear Mani

I mean:

from your example I understand if invoice amount is less than 10,000 then WHT should NOT be applicable.

[rane_prashant]

Dear Expert,

any advice?

B/R

Prashant Rane

[Former Member]

This message was moderated.