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Withholding tax from SD: Determination of base amount

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Withholding tax from SD: Determination of base amount
Stechies

The spution consists of two parts: Coding changes and configuration of the SD pricing procedure and the Withholding Tax Calculation.
 

1. Coding changes:

The easiest way is to apply the indicated support package. If this is not possible, you have to carry out the following manual activities:

a) Create Function group ID_SD_GEN

                       Create the Function group ID_SD_GEN in the development class ID-FI.

                       Create the following function modules:

                       WHT_CODE_IN_SD_PRICING_CHECK

                       Importing

                       Name      Typing   Assoc. Type

                       IS_KOMK   TYPE    KOMK

                       IS_KOMT1  TYPE    KOMT1

                       IT_XKOMV  TYPE    TAX_XKOMV_TAB

                       IT_T683S  TYPE    TY_T683S

                       Tables

                       Name      Typing   Assoc. Type

                       IT_KOMT1  TYPE     KOMT1

                       Exceptions

                       Exception                  Text

                       WHT_CODE_NOT_FOUND         Corresponding WHT Tax Code not found

                       PRICING_INCONSISTENCY      Pricing document is inconsistent

                       CUSTOMIZING_INCONSISTENCY  Customizing is inconsistent

                 WHT_KNBW_CHECK

                       Importing

                       Name      Typing   Assoc. Type

                       IV_LAND   TYPE     ALAND

                       IV_KSCHL  TYPE     KSCHL

                       IV_KUNNR  TYPE     KUNNR

                       IV_BUKRS  TYPE     BUKRS

                       IV_PRSDT  TYPE     PRSDT

                       Exporting

                       Name         Typing   Assoc. Type   Pass Value

                       EV_WHT_CODE  TYPE     WT_WITHCD      X

                       Exceptions

                       Exception  Text

                       NOT_DUE    Not due for Withholding Tax

b) Create pricing requirement routines

                       For technical reasons, the pricing requirement routines 164 and 165

cannot be created in a customer system since they are in SAP name range. However, you can create the routines by choosing numbers in customer name range, e.g. 964 and 965, and then introducing the coding by means of the correction instruction.

                       The procedure to create the routines is as follows:

                       Start transaction VOFM. From the menu, choose the entry "Requirements --> Pricing". Scrpl to the end of the list and create the fplowing entries:

                       Routine number  Description

                       964             Withh.Tax: WHT Code

                       965             WHT Base amount

                       Select the entry 964 and press the editor button to navigate to the source code of the routine.

                       Return, highlight the entry again  and choose the menu entry "Edit --> Activate".

                       Repeat these steps for the entry 965.

                       Then you can apply the correction instructions.
 

2. Changes in configuration
You can easily configure any base amount for the withholding taxes by changes to the pricing procedure and the definition of the base amount for the withhpding tax. An example is given below.

The approach is as follows:

  • The withholding tax base is calculated in the SD pricing procedure and posted as a tax to a separate account in FI
  • An offset condition in the SD pricing is posted to the same account but using a different account key.
  • The withholding tax is configured as "Base amount is modified tax amount". The posting key from the first condition is entered as relevant for the determination of the base amount.

       An example for the case of using the freight as basis for the tax is given below.

a) Create Condition types

                       Create the following SD condition types with transaction V/06:

                       Condition type WCOD: "Withholding Tax Code"

                       Access seq.   J1AG

                       Cond. class   'W' Wage withholding Tax

                       Calculat.type 'A' Percentage

                       Cond.category 'D' Tax

                       Manual entries  'D'  Not possible to process manually

                       Header condition ' '

                       Item Condition   'X'

                       RefConType    '    '

                       RefApplicatio ' '

                       Delete from database 'B without popup'

                       Condition type WBAS: "Withholding Tax Base"

                       Access seq.   MWST

                       Cond. class   'D' Taxes

                       Calculat.type 'A' Percentage

                       Cond.category 'D' Tax

                       Manual entries  'D'  Not possible to process manually

                       Header condition ' '

                       Item Condition   'X'

                       RefConType    '    '

                       RefApplicatio ' '

                       Delete from database 'B without popup'

                       Condition type WOFF: "Withholding Tax Offset"

                       Access seq.   MWST

                       Cond. class   'D' Taxes

                       Calculat.type 'A' Percentage

                       Cond.category 'D' Tax

                       Manual entries  'D'  Not possible to process manually

                       Header condition ' '

                       Item Condition   'X'

                       RefConType    '    '

                       RefApplicatio ' '

                       Delete from database 'B without popup'

                       FI Condition types:

                       The condition types WBAS and WOFF must be created as FI condition types by copying the condition type MWAS. The IMG activity is found under

                       Financial Accounting

                       Financial Accounting Global Settings

                       Tax on Sales/Purchases

                       Basic Settings

                               Check Calculation Procedure

                                 Define Condition Types

b) Create posting keys
If the posting keys WG3 and WG4 do not exist in your system, you can create them according to the instructions given in Note 747607. You do NOT have to apply that Note, only the relevant posting keys.

c) Pricing procedure
The condition types WBAS and WOFF must be inserted into the relevant pricing procedures. For FI, this is carried out in the folllowing IMG activity:

                       Financial Accounting

                         Financial Accounting Global Settings

                           Tax on Sales/Purchases

                             Basic Settings

                               Check Calculation Procedure

                                 Define Procedures

    Insert the condition types into the FI procedure (e.g. TAXMX) as given below:

                       Step Type  Text                Fro    ActKey

                       200  WBAS  Withhpding Tax Base 100    WG3

                       205  WOFF  Withhpding Tax Offs 200    WG4

                       For the SD pricing, use transaction V/08 to maintain the SD pricing procedure (e.g. RVAAMX) as follows:

Step Cntr CTyp Fro To  Man. Mdt Stat P SubTo Reqt AltCTy AltCBV ActKy
985       WCOD                                164
986       WBAS  810 815                      165               WG3
987       WOFF  986                                            WG4

                        This setup expects the freight conditions HD00 and KF0 in the line range810 to 815. If this is not the case, adapt the "From" and "To" fields accordingly.                      

                       Condition records for condition types WBAS and WOFF

                       FI: In transaction FTXP, maintain entries for the tax codes required

                       Maintain 100% for WBAS and -100% for WOFF

                       SD: Maintain TSKD and TSKM for WBAS and WOFF

                       Copy the values for MWST to the tax types WBAS and WOFF

                       Create condition records with the proper tax code

                       Maintain 100% for WBAS and -100% for WOFF

                       Note that you have to create condition records for WCOD according to the instructions of note 178824.

d) Configuration of Withholding Tax

The IMG activitiy is found under the following node:

                       Financial Accounting

                         Financial Accounting Global Settings

                           Withholding Tax

                             Extended Withholding Tax

                               Calculation

                                 Withholding Tax Type

                       The withholding tax type is configured in the activities

                       "Define Withholding Tax Type for invoice posting" or

                       "Define Withholding Tax Type for payment posting" as required.

                       Define the WHT type FR with the Base amount as "Modified Tax Amount". Set the other parameters as required.

                       Assign SD condition to the relevant WHT Tax Type.

                       This activity is found under the above mentioned node as "Assign Condition Type to Withholding Tax Type".
                        Here, assign WCOD to the Withholding Tax Type FR.

                       Assign Posting Key WG3 to the modifed tax amount for FR

                       Under the WHT node, perform the following activity

                       Withholding Tax Base Amount

                         Define Processing Key for Modified Tax Amount

                       you can use the check report from Note 178824 to verify the customizing settings.

                       Assign customer master data to the Withholding tax type FR and the relevant withholding tax codes.


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