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withholding tax & payment problem

Former Member
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Hi,

I have defined two WHT Types & Codes as follows and assigned the both to a vendor:

WHT Type WHT Code Description

PP PP WHT during Payment Posting (downpayment)

IP IP WHT during Invoice Posting

At the time of making the Downpayment, the system correctly picks only the first WHT type & code i.e. PP

But at the time of Invoice Posting, it pops up both IP & PP, and I have to manually remove the PP. I want to avoid this.

How can we make the system pick only IP at the time of Invoice Posting (just the way it picks only PP during downpayment)?

Since i'm going to use this in a Rent recurring entry (which will be processed via Batch processing in Background), its important that users don't have to manually remove the inapplicabe WHT code.

Please help!

Thanks,

Amit Bharti

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Amit,

To avoid the TDS on payment during invoice posting, you need to do below:-

1. In the vendor master maintain the entries as below:-

WHT Type = PP

WHT Code = Give Blank

LIable to tax.

WHT Type = IP

WHT Code = IP

LIable to tax.

2. During Payment posting:-

System will show only the PP WHT type with blank WHT code. User need to enter the WHT code here.

3. During Invoice Posting:-

System will show the PP WHT type with blank WHT code and the IP WHT type with IP WHT code. So the tax will get deducted only for IP. So it will meet your Rent recurring entry proceddure.

Regards,

Gaurav

Former Member
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Thanks Gaurav,

It did solve my problem. But honestly, during downpayment also, I wanted the system to pick by default the relevent WHT code PP.

However your suggestion did work smoothly for Rent recurring entry also.

Thanks again,

Amit Bharti

Answers (2)

Answers (2)

ravichandran_iyer
Active Contributor
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If you are in ECC 4.7 / 5.0, you can implement the following note :

Note 817761 - Payment time withholding tax codes at invoice time (IN)

This will remove the Payment tax code line from invoice in the Withholding Tax tab. That way, you dont have to input the Tax codes manually. You can default it from Vendor Master.

Ravi.

Former Member
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This message was moderated.

ravichandran_iyer
Active Contributor
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This note is marked relevant upto ECC 5.0 SAP has not updated the note as this is a modification note and not officially supported by them. I have implemented this in 4.7 and 5.0 and it was working fine in both.

You can check with your ABAPer to compare the code in ECC 6.0. I think ECC 5.0 and 6.0 are similar in architecture, so this might work. But get it confirmed with your ABAPer and install it in your test system and test it thoroughly before taking it live.

Ravi.

durgasankar_innamuri
Active Contributor
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Hi,

Addition to that run program RFWT0010 through T.code SE38 for that vendor by deselecting the test run button.

Also choose Also down payments and partial payments with withholidng tax code

Regards,

Sankar

Former Member
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Dear Sankar,

I could'nt quite understand the usage of this report. Please shed some more light.

Thanks,

Amit

Former Member
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I will explain the usage of the program RFWT0010.

Say vendor has two WHT code AA and AB assigned in vendor master and the document is created with both. So the WITH_ITEM table will get both the WHT code AA and AB.

Now if you have changed the WHT code in vendor master, e.g. to BA and BB, then the WHT details in vendor master and the WHT details for the already posted documents become inconsistent.

It makes issue in the clearing or payment of the documents.

So the program RFWT0010 makes the vendor master WHT details consisting with WITH_ITEM table details. And maintain the WITH_ITEM table data in accordance with vendor master by deleting and inserting new lines.

Regards,

Gaurav