Adjustment of Withholding Tax Information to Relevant Types

Adjustment to Withholding Tax Information after Change to Master Data or Change to Withholding Tax Information for the Company Code

Purpose
Extended withholding tax is active in your company code (field T001-WT_NEWWT is set) and you have open vendor or customer items in your system.

The "relevant withholding tax types" change, for example, as a result of legal changes. A withholding tax type is relevant if the following conditions apply:

- The withholding tax type is entered in the master record of the business partner and indicated as subject to withholding tax (vendor) or authorized to deduct tax (customer).
- The company code is indicated as authorized to deduct tax for vendors or as subject to withholding tax for customers for this withholding tax type (withholding tax data for company code: View V_T001WT)
- The posting date is in the validity period for the deduction authorization (customer master record or withholding tax data for company code).

If the relevant withholding tax types with posting on payment are different on the invoice posting date and the payment posting date, this leads to the following problem when activating open items:

For a manual payment, the open item cannot be activated. Message F5 787 (item(s) not activated due to inconsistent withholding tax information).

For automatic payments, message 7Q 328 is issued (withholding tax information of the item is not consistent with master record/company code).

The message appears because the entries contained in table WITH_ITEM do not correspond to the relevant withholding tax types for the posting date (of the payment).

If the relevant withholding tax types with posting at the time of the invoice are different on the parking date and the posting date of the parked document, this leads to the following problem when posting the parked document:

No data exists for screen SAPLFWTD 100 or the subsequent screen. A message appears stating that no entry exists in table T059Z, or an incorrect withholding tax code has been used when posting the parked document.


This report adjusts open and cleared items that already exist in the system to the change to the relevant withholding tax types so that the the items can then be activated.
An adjustment can only be made for withholding tax types with payment on invoice for parked docuemnts, since the invoice entry transaction for open item has already been completed.


The update run for this report should, if possible, be started when no postings are being made. Make sure that for the company code for which the changes are to be made, no documents are changed or posted. Otherwise, the report may not be able to process all documents (and would have to be started again).

Prerequisites
After document entry, you have changed withholding tax information in the master record or you have changed withholding tax information for the company code.

Start the update run when no postings are being made.

Selection
If you have made changes to the withholding tax information of the vendor or customer master records, for the "Account selection", select the vendors or customers that have been changed, and restrict your selection to the revevant company code.

If you have made changes in the withholding tax data for the company code, in the account selection, select the company code that was changed.
Restrict the selection to vendors or customers if possible.


Under "Document adjustment", make the following settings:
First start the report in test mode to check the proposed changes.
You can then start an update run (do not select "Test run").

The relevant withholding tax information can be determined according to the current date (default value), or you can select another date (for an adjustment for an alternative posting date).

Choose "Add new withholding tax types" if you have increased the number of relevant withholding tax types (for example, by adding new withholding tax types in the master record of the business partner, where the entry is indicated as "subject to" or "authorized to deduct").
New withholding tax information is then created for the open and parked items.
For the new withholding tax information, you can copy the withholding tax code from the master record, or not enter a withholding tax code at all.
If the withholding tax code is taken from the master record, (if there is an entry in the master record), for later payments (or for parked documents, potentially also when the invoice is posted), withholding tax is calculated.
If no withholding tax code is entered, no withholding tax is posted for subsequent payments for this withholding tax type.

Select "Delete w/tax no longer relevant" if you have reduced the number of relevant withholding tax types (for example, if you delete an entry previously marked as "subject to" or "authorized to deduct" in the master record of a business partner). In the existing information for the open items, the withholding tax code is deleted and corresponding withholding tax information from parked documents is completely deleted from the database.
Output
Firstly, the output specifies whether the run was a test run or an update run. In a test run, the data displayed is not updated. The test run can be carried out as often as required.

Secondly, all new withholding tax information added is displayed (new entries in table WITH_ITEM).

The second block contains the changed withholding tax information. Here, the withholding tax codes for the withholding tax information (table WITH_ITEM) were deleted.

The third block contains the deleted withholding tax information. Here, the entire withholding tax information (table WITH_ITEM) was deleted. This only happens with parked documents.

The fourth block contains accounts blocked by the payment proposal where applicable. These accounts cannot be processed. The payment run must be carried out in update mode or the proposal run must be deleted.


In the last block, the company codes for which no processing can be carried out as a result of block entries are listed. Do not carry out any further processing to any documents for these company codes.

Activities
The report processes all open vendor and customer items.

The following documents are based on a payment-relevant transaction, meaning that withholding tax postings for payments were relevant in these transactions:
- Down payment clearing
- Manual partial payments
- Automatic partial payments
- Down payments

If withholding tax codes that are no longer relevant are deleted, this does not apply to these documents.

If new withholding tax types are added, as default, no withholding tax code is added. Adding withholding tax codes and withholding tax base amounts can be useful if the principle of the central invoice is used in the withholding tax type (withholding tax base amounts are considered). For down payments and partial payments you can do this via the indicator "Down Payments and Partial Payments with Withholding Tax Codes".


All other open items and parked items are also processed by this report. Residual items are adjusted to the changed relevant withholding tax types, since no withholding tax has been posted yet for the open items. Payments on account are adjusted to the changed relevant withholding tax types since the SAP System does not post withholding tax for payments on account (for new relevant withholding tax types, withholding tax information is added withhout the withholding tax code).