7Q322 Withholding tax amount equals the customer/vendor line item amount 001

[Former Member]

Hi All

I am facing an error in withholding tax.

I have a scenario where I pay 111000 rent.

This is the first invoice i am raising for 11000.

I am going with tax rate 10%.

I am getting an error like with holding tax amount equals the customer/vendor line item amount 001.

System can't pass through the entry,

can anyone help me with this,

Thanks & regards,

vasu.

[Former Member]

Hi Vasu,

Check the With holding tax configuration. Request you to have basic idea aboout how system calculates WHT.

Entry should be like:

Before TDS

Rent Account 11,000 Dr

Vendor   Account  11,000 Cr

with TDS

Rent Account 11,000 Dr

TDS Payable A/c 1,100 Cr

Vendor Account 9,900 Cr

check with holding tax code rate. It should be 10%.

[former_member1009083]

Hi,

   Please check your Withholding Tax type configuration. what you have maintained for Base amount calculation?

Regards

Diptadhi

[Former Member]

Hi

Check your tax code whether posting ind 1 is there or not.

Regards

Sampad

[Former Member]

Hi Sampad,

Tax code posting indicator is 01,

still i am unable to proceed,

please help me.

regards,

vasu.

[Former Member]

Sorry in my above question the rent i am willing to pay 11000.

[Former Member]

Hi,

This error pertains to the accounting fundamentals and SAP does not have anything to do with this....you ask yourself that if you were not using SAP and simlar problem came your way what would you have done...this has no solution...

Either you wait for the next invoice with big amount but which seems bit impractical..

In this we really need to consult the Accounting Standards to see what it could allow.

Regards,

Puri.

[jaybanda2]

Mr. Reddy,

please don't get me wrong or take it in a bad sense please. i really do appreciate your time and effort in trying to answer, but your answer was so vague with out giving any direction to the solution seeker.

i believe we are here to give them some sort of direction if we know about it or better don't answer than just putting few lines just for a sake.

Vasu,

probably i am telling you the basic things but we need to look at the basics first right.

recheck the Config, as you said this is the first invoice, they should be a fairly simple steps to check under the "Carry out and check settings for Withholding tax" in SPRO. I would suggest you to take ABAP help to the same scenario in your test system to see what is causing it.

Thank you

Jay

[Former Member]

Thanks JAY.