Document Entry, Document Change, and Document Display
Withholding tax is taken into account in all normal posting transactions. The withholding tax information must therefore be entered here.
For more information about the relevance of withholding tax types, see
Extended Withholding Tax on Document Entry
When entering documents, you can enter withholding tax data for every customer/vendor line item. Once you have confirmed entry of the line item (on the customer or vendor screen), the system displays the dialog box Enter Withholding Tax Information which contains one line per withholding tax type.
During document entry, this withholding tax dialog box appears each time you create a new customer or vendor line item. If you edit one of these customer or vendor line items again during document entry, you will need to access the withholding tax dialog box by choosingExtras ® Withholding tax data .
You determine the status of the fields W/tax b/at (withholding tax base amount) and W/tax amnt (withholding tax amount) displayed in the withholding tax dialog box when defining the withholding tax type.
Document Simulation and Posting
Processing withholding tax involves two separate activities, namely:
The system determines the withholding tax base amount according to the Customizing settings for the combination of withholding tax type and withholding tax code. There is therefore only an entry for withholding tax once you simulate the document. The base amount can also be entered manually by the user (if the relevant Customizing settings have been made), and a manual entry overrides the amount calculated by the system.
Where payments are made by installments, the withholding tax base is apportioned across the new customer/vendor line items.
The way in which withholding tax is calculated depends on the withholding tax type:
The withholding tax type controls when the withholding tax is calculated and posted for example. Withholding tax is calculated and posted either when the invoice is entered or when payment is made.
Withholding tax is generally calculated by the system. However, if you have made the appropriate settings in Customizing, it can be entered manually. A manual entry overrides the amount calculated by the system.
When you post down payment requests and payment requests, the system only calculates the withholding tax base amounts.
The system does not calculate any withholding tax base amounts when you save or change parked documents, only when they are posted.
When documents are held, the system does not calculate any withholding tax amounts/base amounts.
When you post documents using a reference, the system defaults withholding tax base amounts, but not any existing withholding tax amounts. The system does not calculate any withholding tax base amounts/tax amounts when you enter a reference document.
The system does not calculate any withholding tax base amounts/tax amounts when you enter a recurring entry document.
Extended Withholding Tax: Changing Documents
Provided you have not already posted the withholding tax, you can change the withholding tax information in a document. This is only the case for withholding tax of the type posting at time of payment. You can only make changes however in transactions that are not relevant for payments.
When you change the document, the system enables you to change the selection date in the withholding tax dialog box. If you have made changes in the relevant withholding tax types, the withholding tax fields for this type are ready for input.
The settings you made in Customizing for the withholding tax type in question determine whether the amount fields such as Withholding tax base, Withholding tax amount, and Withholding tax amount already withheld can be changed or not.
If you enter a new withholding tax code and do not enter the withholding tax base amount manually, the system recalculates the withholding tax base amount automatically.
If you delete the withholding tax code, the system resets all withholding tax information for this withholding tax type.
Whenever you change withholding tax information, the system creates change documents.
Extended Withholding Tax: Document Display
The same rules apply for displaying documents as for changing them, with the exception that you cannot enter any data in the fields. If, for example, when displaying the document, the list of relevant withholding tax types differs from the withholding tax types already defined in the withholding tax information for a line item, the same rules apply as for changing documents.
When displaying documents, you can display the withholding tax base amount and withholding tax amount in all the currencies maintained for that company code. You can call up the various currencies in the withholding tax dialog box by choosing the appropriate pushbutton.