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withholding tax not calculated at the time of payment

Former Member
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Hello gurus

I've done all the configuration required for the extended withholding tax type-also have updated the tax type and code in the vendor master.

Now when i make the payment, the withholdign tax type is not deducted and no posting is made in the acccount assigned for the extended withholding tax ..

here are the configuration that i made:

Check Withholding tax country:

Define Withholding tax type for Payment Posting

Define Exchange Rate Type for withholding tax type

Define Withholding tax code:

Assign withholding tax types to Company Code

Activate Extended Withholding tax:

Assign Accounts for Withholding Tax to be paid over

after the above steps i updated the vendor master date with the extended withholding tax type and code

I hve NOT configured the withholding tax type for Incoming invoice ( since i'm not deducting the tax at the time of invoicing - we want it to be at the time of payment)

  • this is for country key - US

Please help me . . is there any configuration step that i'm missing.

thanks in advance

Michelle

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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i am now able to calculate the withholding tax on payment. i had to enable WH Tax field optional from supress in the field status group.

But now, when i try to pull out a report using S_P00_07000134, the payer's name field appear to be blank and so does the Federal income tax withheld field.

other fields such as Recipient's name and address fields are populated

what am i missing here?

Former Member
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Exucute this report and see the result, if its same as one you mentioned.

S_PL0_09000314 - 1099-Misc

Former Member
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Hi

Please check whether in vendor master a check box "liable" ticked or not which is available after Wtax code & type. You have to tick this box in vendor master while updating Wtax type and code.

regards

srinivasa rao

durgasankar_innamuri
Active Contributor
0 Kudos

Hi,

at the time of defining withholding tax type at the time of posting are you choosen post withholding tax button.

and check the withholding tax code attached to your withholding tax type. see for that withholding tax type whether posting indicator 1 choosen or not.

At the time of defining withholding tax type are choosen accumulation. if you choosen then system will deduct tds when it exceeds the minimum amount . that minimum amounts specifications whether at type level or code level is also defined at the time of creating withholding tax type.

Finally check whether withholding type is assigned to withholding tax type.

Hope this is clear, if yes assign points

Regards,

Sankar