Customizing

Settings

1.  Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax Extended Withholding Tax Basic Settings Define Withholding Tax Keys

Create official withholding tax key 206C

2.   Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax Extended Withholding Tax Calculation Withholding Tax Type Define Withholding Tax Type for Invoice Posting

Create withholding tax type S1 with the name Tax Collected at Source-Base and make the following settings:

- Base amount = Modif. net amount

- Rounding rule = Round w/tax amnt up

- Select Post w/tax amount checkbox

- Accumulation type = No accumulation

- Control data = select checkboxes W/tax base manual, Manual w/tax amnt, and No cert. numbering

Similarly create withholding tax types S2, S3, and S4 with the names Tax Collected at Source-Surcharge, Tax Collected at Source-Education Cess, and Tax Collected at Source-SECESS respectively and make settings as stated above.

3.  Sales and Distribution Basic Functions Pricing Pricing Control Define Access Sequences (choose Maintain Access Sequences)

Copy the existing access sequence J1AW and create a new access sequence J1IW with the name Withholding tax code - country-specific and make the following settings:

- Access sequence-Access number = 10

- Condition table = 399

4.  Sales and Distribution Basic Functions Pricing Pricing Control Define Condition Types (choose Maintain Condition Types)

Create condition type JTCS with the name TCS-Base and make the following settings:

- Access sequence = J1IW

- Cond. class = W

- Calculat. type = A

- Cond. category = D

- Select Item Condition checkbox

Similarly create condition types JTEC and JTSE with the names ECS on TCS and SECess on TCS respectively and make settings as stated above.

5.  Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax Extended Withholding Tax Calculation Withholding Tax Type Assign Condition Type to Withholding Tax Type

Assign condition types JTCS, JTEC, and JTSE to withholding tax types S1, S3, and S4 respectively.

6.  Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax Extended Withholding Tax Calculation Withholding Tax Code Define Withholding Tax Codes

Create withholding tax code S1 with name TCS-Base and make the following settings:

- Off. W/Tax Key = 206C

- Post.indic. = 3

Similarly create withholding tax codes S3 and S4 with the names Education cess on TCS and SECess on TCS and make settings as stated above.

7.  Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax Extended Withholding Tax Posting Accounts for Withholding Tax Define Accounts for Withholding Tax to be Paid Over

Enter the chart of accounts CAIN. You need to maintain the same G/L account for the transaction key WIT-based tax line items and SD-FI condition based tax line items.

Maintain a separate G/L account for the transaction key OFF-based line items.

Since posting of TCS happens on both SD and FI documents, ensure that you assign the same G/L account for each combination of withholding tax type and withholding tax code.

8.  Sales and Distribution Basic Functions Free Goods Control Free goods Pricing Maintain Pricing Procedure For Pricing

Select the pricing procedure JINFAC and double-click Control data. The system displays the Control data screen.

Define the condition types JTCS, JTEC, and JTSE and add them to the pricing procedure JINFAC. The system calculates the values of the goods but does not post them directly to the Sales and Distribution document (SD). Instead, posting takes place based on the assignment of condition types to the withholding tax types (refer step 5).

9.  Sales and Distribution Basic Functions Pricing Pricing Control Define Condition Types (choose Maintain Condition Types)

Create a new condition type JWTS to post TCS to Financial Accounting (FI) documents. Add this condition type to the pricing procedure JINFAC.

Similarly create condition types JETS for ECS on TCS and JSTS for SECess on TCS and add them to the pricing procedure JINFAC.