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 Withholding Tax

 

For individual withholding tax rates, you can specify in Customizing if you want to post self-withholding. If the appropriate indicator is set, then the system generates two new G/L items for debit-side withholding tax, rather than a statistical credit.

The system takes self-withholding into account only for debit-side withholding tax.

This function is needed only in certain countries, such as Columbia.

Technical Details

Technical Name of Product Feature

FICAX_ADD_WHTFEATURES

Product Feature Is

New

Country Dependency

Valid for all countries

Software Component Version

FI-CAX 617

Application Component

IS-UT (Generic Contract Accounts Receivable and Payable)

Available As Of

SAP Enhancement Package 7 for SAP ERP 6.0, SP06

Prerequisite Business Function

FICAX_LOC_1

Additional Information

Effects on Customizing

To be able to post self-withholding, make the following settings in in Customizing for Contract Accounts Receivable and Payable:

  • Set the indicator for the withholding tax supplements you want to use, under Start of the navigation path Basic Functions Next navigation step Withholding Tax Next navigation step Define Allowed Entries for Withholding Tax Supplements End of the navigation path.

  • Under Start of the navigation path Basic Functions Next navigation step Withholding Tax Next navigation step Account Assignments for Withholding Tax Supplements with Self-Withholding End of the navigation path, enter the accounts for posting the self-withholding.