Withholding tax deduction while posting compay paid travel expenses to vendor

[Former Member]

We are planning to use service provder concept & post company paid travel expenses through travel management.

We are facing the below two isues hile configuring the same.

• Withholding tax (TDS) is not getting deducted on the vendors even though it is updated in the vendor master.
• We are not able to post the trip partially. i.e. if only third party vendor expense types need to be posted, transaction PRFI posts all the espenses of the trip which includes the expenses to be reimbursed to the employee as well.

        As we are using ESS system for travel managment the employees are entering the expenses on their own in ESS & the same are flowing to SAP R3.

Please suggest.

Thanks in advance.

[former_member131723]

Hi Archana.

Did you look into the BAdI BADI TRIP_POST_FI as a workaround but withholding tax is not treated within Travel Management as it cannot provide withholding tax information from FI-TV side when posting to FI as travel management is only considered for employees.

Basically when taking into account a traveller's income tax resulting from trip reimbursements then exceeding the tax free limit can be calculated in the payroll (because all employees must be paid via payroll) and so these additional amounts were transferred from travel management to payroll for correct tax handling. It is neither necessary nor possible to do this income tax calculation in the FI (using the witholding tax)

Hope it would clarify!

thanks

Sally