Configuration Document

FI-MODULE – Withholding tax

Project – ‘Udaan’
 FI – Configuration Document
Contents
Finance configuration .............................................................................................................................................. 2
1. Withholding tax............................................................................................................................................ 2
1.1. Check Withholding Tax Countries ................................................................................................................ 2
1.2. Define Withholding Tax Keys ....................................................................................................................... 2
1.3. Define Business Places ................................................................................................................................. 3
1.4. Define Withholding Tax Type for Invoice Posting ........................................................................................ 3
1.5. Define Withholding Tax Type for Invoice Posting ........................................................................................ 4
1.6. Check Recipient Types.................................................................................................................................. 5
1.7. Assign Withholding Tax Types to Company Codes ...................................................................................... 6
1.8. Activate Extended Withholding Tax ............................................................................................................ 6
1.9. Define Accounts for Withholding Tax to be Paid Over ................................................................................ 7
1.10. Assign Withholding tax type to business partner ....................................................................................... 7
1.11. Business Transaction ................................................................................................................................... 8

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 FI – Configuration Document
Finance configuration
1. Withholding tax

This section covers the finance Configuration in system

1.1. Check Withholding Tax Countries

Menu Path SPRO → Enterprise Structure → Financial Accounting → Financial Accounting Global Settings
→Withholding Tax →Extended Withholding Tax→ Basic Settings →Check Withholding Tax
Countries

1.2. Define Withholding Tax Keys

Menu Path SPRO → Enterprise Structure → Financial Accounting → Financial Accounting Global Settings
→Withholding Tax →Extended Withholding Tax→ Basic Settings →Define Withholding Tax Keys

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 FI – Configuration Document
1.3. Define Business Places
Menu Path SPRO → Enterprise Structure → Financial Accounting → Financial Accounting Global Settings
→Withholding Tax →Extended Withholding Tax→ India →Define Business Places

1.4. Define Withholding Tax Type for Invoice Posting

Menu Path SPRO → Enterprise Structure → Financial Accounting → Financial Accounting Global Settings
→Withholding Tax →Extended Withholding Tax→ Calculation →Withholding Tax Type→Define
Withholding Tax Type for Invoice Posting

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 FI – Configuration Document

1.5. Define Withholding Tax Type for Invoice Posting

Menu Path SPRO → Enterprise Structure → Financial Accounting → Financial Accounting Global Settings
→Withholding Tax →Extended Withholding Tax→ Calculation →Withholding Tax Type→Define
Withholding Tax Type for Payment Posting

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 FI – Configuration Document

1.6. Check Recipient Types

Menu Path SPRO → Enterprise Structure → Financial Accounting → Financial Accounting Global Settings
→Withholding Tax →Extended Withholding Tax→ Basic Settings →Check Recipient Types

Here we create recipient type CO & OT for all withholding type

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 FI – Configuration Document
1.7. Assign Withholding Tax Types to Company Codes
Menu Path SPRO → Enterprise Structure → Financial Accounting → Financial Accounting Global Settings
→Withholding Tax →Extended Withholding Tax→ Company Code→ Assign Withholding Tax
Types to Company Codes

1.8. Activate Extended Withholding Tax

Menu Path SPRO → Enterprise Structure → Financial Accounting → Financial Accounting Global Settings
→Withholding Tax →Extended Withholding Tax→ Company Code→ Activate Extended
Withholding Tax

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 FI – Configuration Document

1.9. Define Accounts for Withholding Tax to be Paid Over

Menu Path SPRO → Enterprise Structure → 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

1.10. Assign Withholding tax type to business partner

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 FI – Configuration Document
1.11. Business Transaction

Tcode:- FB60

Click on

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 FI – Configuration Document
Click on

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