SAP carries out this step.

In this step, the vendor master records created in your system are converted. Master records are converted for those vendors

• that have been created in the company codes that you selected for the current conversion run

• for which a withholding tax code is defined for classic withholding tax in the master record

Using the settings you made in the Type/code assignment step, the system derives the withholding tax types to be assigned to the vendor for extended withholding tax from the withholding tax codes previously entered in the master record for classic withholding tax.

Using the option you selected in the Master data settings step, the system determines whether one or more withholding tax types are assigned to each vendor.