Clearing of Withholding Tax on Clearing Accounts (SAP Library

Clearing of Withholding Tax on Clearing Accounts

Use

You use this report to reverse any tax withheld (provisions) on any items currently in a goods receipt account.

The procedure is as follows: When you post an invoice for an item that you have withheld tax on, you post it following the standard procedure. This report, which we recommend you run every night in the background, automatically identifies all such invoices and reverses the tax withheld.

This report can only be run by one user in any one company code at a time.

Integration

This report effectively reverses the postings made using the Calculation of Withholding Tax on Clearing Accounts report.

Features

To access the report, from the SAP Easy Access screen, choose Tax Deduction at Source ® Extended Withholding Tax ® Provision ® Utilize.

Selection

On the selection screen, enter:

Organizational data, such as the company code
The posting date of the invoices
The posting period

Output

The system reverses the tax postings by creating an accounting document that:

Debits the withholding tax payables account
Credits the withholding tax on provisions account