Calculating Withholding Tax on Interest Accruals 

Use

This function enables you to define the posting on accruals and deferrals of expenses and revenues in Treasury. To perform these functions, you use the corresponding transaction. On the SAP Easy Access screen, choose for Money Market → Accounting → Financial Supply Chain Management → Treasury and Risk Management → Transaction Manager → Money Market → Accounting → Accrual/Deferral.

Choose for Securities, instead: Accounting → Financial Supply Chain Management → Treasury and Risk Management → Transaction Manager → Securities →  Accounting → Interest Accrual/Deferral.

For more information about processing of interest accruals, see Accrual/Deferral.

For the TRM India withholding tax function only the difference procedure is possible as an accrual/deferral procedure.

Prerequisites

To generate a withholding tax flow for an accrual, it is necessary to maintain the accrual update type in the corresponding Customizing table.

Features

This program makes accruals or deferrals of expenses and revenues resulting from Treasury deals, and allocates revenue and expenditure items to the proper account periods.

This program performs the following functions:

• Calculates the amount to be accrued or deferred for the flows concerned
• Creates the corresponding accrual or deferral flows
• Posts the items immediately in financial accounting, if required.