Defining Accounts for Withholding Tax (SAP Library

Defining Accounts for Withholding Tax

Use

You define accounts for the account determination for posting withholding tax.

Procedure

In the Implementation Guide for Financial Accounting, choose Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Postings ® Accounts for Withholding Tax .

Depending on whether you have set the posting indicator in the withholding tax code or if you use self-withholding, define accounts for the following transactions:

Define accounts for withholding tax to be paid over

Here you define accounts for the normal withholding tax transaction (WIT). This transaction is required for every withholding tax posting.

Define accounts for withholding tax for "Grossing Up" offsetting entry

You define accounts here if you have selected value 2 for the posting indicator in the withholding tax code. An offsetting posting with the opposite +/- sign is then carried out for the withholding tax item (transaction GRU). The withholding tax amount is increased by a factor of 1/(1-p).

Define accounts for withholding tax offsetting entry

You define accounts here if you have selected value 3 for the posting indicator in the withholding tax code. An offsetting posting with the opposite +/- sign is then carried out for the withholding tax item (transaction OFF).

Define accounts for self-withholding tax

You define accounts here if you want to post self-withholding tax. An offsetting posting with the opposite +/- sign is then carried out for the withholding tax item (transaction OPO).