SAP Settlement Management
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Purpose

This document provides information on how the withholding tax code is being determined for settlement document items in Settlement Management scenarios and aims to provide help with the configuration.

Overview

In Settlement Management scenarios, the withholding tax code is not entered manually but determined using standard condition technique. For this automatic determination, the Pricing program tries to search for a withholding tax code for the withholding tax condition type from the calculation schema of the settlement document.

Depending on whether you have a customer/supplier-sided Settlement document/process, it has to be ensured that the Pricing program can find a valid condition record for the withholding tax condition type, and is able to determine a withholding tax code from it. Below you can find an overview of the relevant customizing and configuration prerequisites.

Customizing prerequisites in FI

  1. First of all the extended withholding tax needs to be activated for the relevant company code in the Customizing1
  2. Then a withholding tax type has to be created in the Customizing2:


    Please make sure to select the highlighted fields in the above customizing activity.

  3. The withholding tax code needs to be created in the Customizing3
  4. The withholding tax type has to be assigned to the relevant company code in the Customizing4
  5. The already created Withholding tax type&code needs to be maintained for the relevant customer(s) / supplier(s).
    1. Customer side:
      Please select the relevant Business Partner role for FI Customer (in standard FLCU00) in the ’Company code’ data on the ’Customer: Withholding tax’ tab and ensure that the following data is entered:

      - Withholding tax type, which was created based on the section Step 2.
      - Withholding tax code, which was created based on the section Step 3.
      - Withholding tax agent indicator needs to be flagged

    2. Supplier side:
      Please select the relevant Business Partner role for FI Vendor (in standard FLVN00) in the ’Company code’ data on the ’Vendor: Withholding tax’ tab and ensure that the following data is entered:

      - Withholding tax type, which was created based on the section Step 2.
      - Withholding tax code, which was created based on the section Step 3.
      - Subject to Withholding Tax indicator needs to be flagged

  6. The relevant accounts for the extended withholding tax type&code combinations need to be customized5
  7. Assignment of withholding tax condition type from Pricing to the withholding tax type in the Customizing6

Customizing prerequisites in Pricing

  1. Withholding tax condition type
    Due to some differences in the requirements, the Purchasing side (Application M) and the Sales side (Application V) will be explained separately.
    1. In a Sales sided scenario (Application V) a withholding tax condition type has to be defined in transaction V/06.


    2. In a Purchasing sided scenario (Application M) a withholding tax condition type has to be defined in transaction M/06.
      In purchasing sided scenario, it is first required to create a sales sided withholding tax condition type (see step 1/a) and assign it as a reference condition type to the purchasing sided withholding tax condition type in transaction M/06.

      The SD and MM sided condition types must have at least one common access in their access sequences, where the same condition table is used and a valid condition record is maintained (See Step 4 below).

  2. The access sequences for the withholding tax condition type needs to be created in transaction V/07 and/or M/07 (in a purchase sided scenario two access sequences are required:
    one in V/07 and another one in M/07), in order to ensure that the relevant condition record can be maintained and found by the Pricing application.

  3. Pricing procedure to include withholding tax condition type – Transactions V/08 or M/08
    The withholding tax condition type needs to be added to the bottom of the pricing procedure as a statistical condition.

  4. Maintain withholding tax condition record for SD condition type – Transaction VK11. Here the percentage and the withholding tax code has to be maintained.
    Please note that in case of a purchasing sided scenario (application M), the withholding tax condition record has to be maintained for the reference condition type, on the SD side, in transaction VK11.

Customizing paths

#1 - Activate extended withholding tax for company code:
SPRO -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax  Extended Withholding Tax -> Company Code -> Activate Extended Withholding Tax

#2 - Creating Withholding tax type:
SPRO -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Calculation -> Withholding Tax Type   -> Define Withholding Tax Type for Invoice Posting / Define Withholding Tax Type for Payment Posting

#3 - Creating Withholding tax code:
SPRO -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Calculation -> Withholding Tax Code -> Define Withholding Tax Codes

#4 - Assigning Withholding tax type to Company code:
SPRO -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Company Code -> Assign Withholding Tax Types to Company Codes

#5 - Configuration of relevant accounts:
SPRO -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Posting -> Accounts for Withholding Tax -> Define Accounts for Withholding Tax to be Paid Over

#6 - Assign Condition Type to Withholding Tax Type:
SPRO -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Calculation -> Withholding Tax Type -> Assign Condition Type to Withholding Tax Type

Most important program parts and debugging hints

Method: FILL_ACC_DATA_SINGLE_DOC (CL_WLF_ACC_DOC_CREATE)

-Together with all the other conditions, the withholding tax is also processed here to create ACCIT lines from them.
- Withholding tax condition: KOMV_TYPE 7

Method: CREATE_WITHHOLDING_TAX_LINE (CL_WLF_ACCOUNTING_LINE_SERVICE)

- Only the active condition types are processed (KOMV- KINAK)
- The Application needs to be V (in case of Purchasing side coming from the reference condition)
- Company code (BUKRS) is determined based on the Price Determination sides (WKOPAR)
- Withholding tax type will be proposed from the country key of BURKS and the condition type.
- The withholding tax code is taken over from the condition record (KOMV-MWSK2)
- Condition Base Value (KOMV-KAWRT) and Condition value (KOMV-KWERT) must not be initial

Function Module: AC_DOCUMENT_CREATE
- ACCWT table will contain the withholding tax data

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