WHT wrong calculation

[#1]

Hi Guys:                   We are facing an issue regarding WHT calculation...An invoice as shown in figure is raised via MM. On this invoice , WHT was deducted at the time of MIRO. Now we are going to make payment against it in F-53 system is calculating wrong amount of WHT. Its our practice to enter WHT code manually in invoice line item once it is created..WHT rate is 3.5 percent but system is calulatin an amount exceedgin this. Please guide.

[Former Member]

Can you please elaborate it further? I dont see any WHT posting during MIRO. Is is that you have maintained a Payment WHT in the vendor master as well?

Please check and confirm.

Regards,

Prasad

[Former Member]

Hi:

       Sales tax Witheld 1 % is amount of tax deducted at the time of invoice. WTH base amount system showing in F-53 IS 7820 Rs but calculating wrong amount of it on payment as can be seen in silumation i gave . Yes i have  entered WHT types in vendor master for invoice as well as payment posting..

Br

[Former Member]

Hi:

          Any replies....

[Former Member]

Hi ,

I have a few doubts in the above mentioned scenario.

1) As Per your scenario Amount mentioned in vendor Invoice is ( 7752+1078+67.41) & out of which we are doing payment of only 7752 , rest of the amount is withheld in separate account.therfore you are bound to deduct Withholding tax on 7752 which becomes 271.34 (as per 3.5% mentioned by you) .

Now Since system is deducting 434.7 ( @ rate of 5.94 ) therefore check the %age mentioned against the WTH tax code while configuration.

SPRO->Financial Accounting->withholding tax->Extended Withholding Tax ->Withholding tax code->Define WTH

Select you Tax Type & WTH Code & check the %age mentioned in calculation box.

2) You have mentioned Sales tax 1% withheld at the time of invoice. Is it 1% of Invoice Amount?? if yes then i guess you must check its value also as it is calculating 1% of GRIR Amount.

Honey

[Former Member]

Hi:

         Thanks for your reply.  I have faced this scenario first time where system wrongly calculating WHT amount. Actually GRN was done for 6741.52 Rs and system is deducting WHT amount rightly at the time of invoice for the value of goods. Now when it comes to payment it is calculating wrong amount of WHT, first thing i checked was WHT Code percentage , it is correctly entered as 3.5 %. ...

[narasimhulu_konnipati]

Are you deducting the TDS amount twice, 1 at MIRO and second at Payment level?

I am confused.

TDS will be deducted only once either at payment level or Invoice level, which ever is earlier.

In that case, Check if the TDS amount calculated and posted at the time of MIRO is correct or not.

If yes, attach a screen shot. Along with that, attach the screen shot ot Vendor master WHT data.

Then while paying amount to Vendor (on the same Invoice), why are you dedcuting second time?

Tells us the requirement clearly

Thanks

[former_member207607]

Dear Keen,

please trace the WT calculation by the report RFWT0010 (se38), inserting the FI invoice document number.

Probably the WT calculation is not linear because You have the wt type with accumulation or because You defined something into the table minimum-maximum amount.

I hope this helps.

mauri

[Former Member]

Hi:

        In Customizing for WHT code Y2 3.5 % i can see Minimum base amount of 25,001 PKR. How will this impact wrong calculation of taxes in  this scneario.This vendor has already had lots of transaction posted in which WHT was calculated correctly...Can you please tell . In Accumulation yearly accumulation is set with month starting from 7...

Br

[Former Member]

Hi:

    In our country WHT is deducted twice ..For tax payers , revenue authorities also require them to deduct 1 % of good receipt value at the time of invoice..When payment is made , WHT at the time of payment comes into action ...So TDS posted at the time of MIRO is correct..

Br

[Former Member]

Hi ,

Do check whether any withholding tax formula is maintained or not.

Could be possible that you have set the formula that for a certain limit system should calculate 3.5% & above that limit it should calculate other %age.

Other possibility is that you have maintained some maximum limit for Withholding tax/ base amount. So that once accumulated amount exceeds that amount system stops calculating WTH on exceeeded amount.

Honey

[Former Member]

Hi:

    WHT formula is maintained for a tax code other then Y2 .. In above post i have mentioned that minimum base amount set for Y2 is 25000 PKR...Does it has anything to do with the wrong computation of WHT amount?

Br

[Former Member]

Hi ,

By setting minimum base amount means once your invoice accumulation amount exceeds this amount then only system will deduct Withholding.In your scenario i guess there must be some other config which is the culprit for incorrect calculation. Pls check your wth fornulae , there must be some config in there.

One more small thing but could be the possible reason for incorrect wth calculation.

While posting entry , pls check whether User has not entered any base amount in the withholding tax window or directly entered the tax amount.

Honey

[Former Member]

Hi Sachin:

                   Thanks for you continuous support. I have checked configuration from all aspect , there is no other hidden configuration which is causing this . I do not know what is causing this issue. Thinking to raise an OSS note for the same.

Br

[Former Member]

Hi ,

I guess that would be better. pls share the culprit & solution once your issue gets resolved.

All d best .

Honey