Creating a Withholding Tax Term

Use

You can post conditions with withholding taxusing RE posting processes. For this you need to create a withholding tax term in the real estate contract.

Note Note

For more information, see Postings with Extended Withholding Tax .

End of the note.

Prerequisites

To make postings with extended withholding tax, you have to have made settings in Customizing for Financial Accounting (see Postings with Extended Withholding Tax ).

Procedure

To create a withholding tax term in customer or vendor real estate contracts, proceed as follows:

  1. You are processing a contract and are on the Posting Parameters tab page. Choose with the quick info text Create Term, and choose the Withholding Tax entry.

  2. On the Withholding Tax tab page, you can select from two functions when you choose with the quick info text Add Withholding Tax:

    • Propose Partner Data

      You can copy the data for withholding tax from the master data of the business partner. To be able to do so, you need to have already assigned a business partner. You can still change the withholding tax key.

    • Add Blank Row

      You can enter the withholding tax data manually.

    Note Note

    • You can enter only one withholding tax code for each withholding tax type.

    • For customers, you can use only payment-relevant withholding tax types.

    • For vendors, you can also enter invoice-relevant withholding tax types.

    • When the contract is checked, saved or activated, the entered data is checked against the master data of the customer or vendor.

    End of the note.

  3. Assign the condition, which is used for posting the withholding tax, to the withholding tax term. To do so, choose the Conditions tab page in contract processing.

  4. Select the condition that you want to use for posting withholding tax.

  5. Choose the Term tab page.

  6. Enter the number of the term you just created in the Withholding Tax field.

  7. Save your entries . In the detail data for the withholding tax term, the assigned condition now appears on the Conditions tab page.

Result

You created a withholding tax term. Now you can, for example, perform periodic posting for your contracts. When you post the incoming payment, the system automatically creates the withholding tax lines, or it transfers the withholding tax information to the document, so that the withholding tax lines can be generated based on it.

If you make one-time postings , then you can enter the withholding tax data on a separate tab page.