Extended Withholding tax configuration (1)

211 define withholding tax type for invoice posting

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Unformatted text preview: in the company code master data. 2.1.1 Define Withholding Tax Type for Invoice Posting IMG à Financial Accounting à Financial Accounting Global Settings à Withholding Taxà Extended Withholding Tax à Calculationà Withholding Tax Type à Define Withholding Tax Type for Invoice Posting Here you define the withholding tax type for the posting at the time of entering an invoice. This withholding tax type does not have any effect on the payment. All calculations for extended withholding tax are made in the first local currency of the respective company code. Update the following:- www.sapficoconsultant.com Page 16 of 57 Click on Update the following:- Here we want the base amount for calculation of the tax as the Gross amount. Rounding rules can be selected based on 3 options available above. We do not want any accumulation of the base amount for calculation of the withholding tax. This is particularly important if the withholding tax is to be deducted only if the gross amount on accumulation reaches a specified figure. Click www.sapficoconsultant.com Page 17 of 57 We can define the minimum and maximum amounts for the calculation either at the withholding tax code level or the withholding tax type level. We will define it at the withholding tax code level. Click on www.sapficoconsultant.com Page 18 of 57 2.1.2 Define Withholding Tax Type for Payment Posting IMG à Financial Accounting à Financial Accounting Global Settings à Withholding Taxà Extended Withholding Tax à Calculationà Withholding Tax Type à Define Withholding Tax Type for Payment Posting Here we define the withholding tax type for posting at the time of payment. We also have to enter the withholding tax information when entering the document for this withholding tax type. Update the following:- Click on Update the following:- www.sapficoconsultant.com Page 19 of 57 Click Click on 2.1.3 Define Exchange Rate Type for Withholding Tax Type IMG à Financial Accounting à Financial Accounting Global Settings à Withholding Taxà Extended Withholding Tax à Calculationà Withholding Tax Type à Define Exchange Rate Type for Withholding Tax Type www.sapficoconsultant.com Page 20 of 57 Here we define the exchange rate type for individual withholding tax types that is to be used for calculating withholding tax. When calculating withholding tax for payments, the exchange rate of the payment is usually used, if the withholding tax amount has to be translated from a foreign currency into the local currency. Some countries have legal requireme...
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This note was uploaded on 11/07/2012 for the course SCIENCE 102 taught by Professor As during the Spring '12 term at Granite State College.

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