Issue No.: 19
A user made an advance payment of INR 20000 through a special G/L transaction and deducted withholding taxes, at 2% (Rs. 400.00). Later the user received an invoice for Rs. 30000. Now the client wants to deduct withholding tax on the balance amount, i.e., Rs. 10000, not on the entire amount. If the user uses T-code F-43, it deducts the tax on the full invoice value of Rs. 30000, which is Rs. 600, whereas the user wants the advance payment taken into account and wants to pay Rs. 200 (Rs. 600-Rs. 400).
A user made an advance payment of INR 20000 through a special G/L transaction and deducted withholding taxes, at 2% (Rs. 400.00). Later the user received an invoice for Rs. 30000. Now the client wants to deduct withholding tax on the balance amount, i.e., Rs. 10000, not on the entire amount. If the user uses T-code F-43, it deducts the tax on the full invoice value of Rs. 30000, which is Rs. 600, whereas the user wants the advance payment taken into account and wants to pay Rs. 200 (Rs. 600-Rs. 400).
The user needs to deduct the tax on the entire amount at the time of invoice posting. While adjusting the advance payment against the invoice, the SAP R/3 system will reverse the tax you have deducted.
However, the user needs to make the following configuration in the payment withholding type for this tax reversal to take place:
1. Follow the menu path: IMG → Financial Account Global setting → Withholding tax → Extend withholding tax → Calculation → Withholding Tax Type → Define withholding tax type for payment posting.
2. Select the withholding tax type. At the bottom is a Central invoice window, in which the user will select the last radio button— Central inv. prop
