Title
Withholding Tax - Analysis Report for Extended Withholding Tax

Purpose
You can use this program to do the following for a company code:

• Check the Customizing settings for consistency


• Display an overview of withholding tax-relevant settings from
Customizing and customer and vendor master records

• Follow the calculation of withholding tax amounts in detail

Prerequisites
You have activated extended withholding tax for the company code to beanalyzed.

Features
The program consists of three subfunctions:


• Check withholding tax settings

Here you can view the current Customizing settings and check them forconsistency.

• Calculate withholding tax

Here you can simulate the withholding tax calculation for a sampledocument.

• Check field status

Here you can display the current field status settings.
The subfunction Check withholding tax settings is located on theinitial screen. To go to the other functions, choose the relevantbuttons.

Note
If you change the withholding tax settings while the analysis programis running, you have to start the program (RFWT1000) again.

Check withholding tax settings
Here you can carry out the following checks:


• Check company code

Enter a company code and choose Check company code .
An overview of the withholding tax categories assigned to the companycode appears. The fields Subject to, Authorized to deduct
, and Exempt and the name of the withholding tax category arealso specified.
Subject to
Specifies that the company code is subject to withholding tax for thiswithholding tax category (customer data).
Authorized to deduct
Specifies that the company code is authorized to deduct withholding taxfor a vendor.
Exempt
Specifies that the company code is exempt from withholding tax(customer data).
The validity refers to the date specified on the initial screen, whichis defaulted as the system date.
To see the current Customizing settings in an overview (
Withholding tax information of the company code per withholding tax
category), double click on the corresponding item.

• Check business partner

Enter a company code and a vendor or customer and choose Checkbusiness partner.
A list of the withholding tax categories and withholding tax codesdefined in the customer or vendor master record appears. The data isvalid for the date defined on the initial screen. The list gives youthe following information:
Is the selected vendor subject to withholding tax or exempt?
Is the company code or customer authorized to deduct withholding tax?
Is the company code subject to withholding tax or exempt?
Name of withholding tax category and withholding tax code.
Withholding tax categories are relevant if both Subject to andAuthorized to deduct are selected. When you post an invoice orpayment, the withholding tax categories indicated as relevant are takeninto account.
You can expand individual lines of the list; the overview containsdetails of the withholding tax categories, and where applicable, of thewithholding tax codes.
To see more detailed information, place the cursor on the required itemand choose Display Customizing settings. The system checks theconsistency of the settings for the entry selected. If there are anyinconsistencies, these are indicated by a red light. The following areinconsistencies:
Dependent withholding tax category was not defined for Inherit base or Reduce base, even though the indicator was defined in thewithholding tax category.
The withholding tax formula is missing from the settings for thewithholding tax company code or is incomplete.
The account for withholding tax to be paid over was not defined.
The account for the offsetting posting to the G/L account (Grossingup) was not defined, even though posting indicator "2" was definedin the withholding tax code.
The account for the offsetting posting to the G/L account was notdefined, even though posting indicator "3" was defined in thewithholding tax code.
The account for self-withholding withholding tax was not defined, eventhough posting indicator "1" was defined in the withholding tax codeand Self-withholding is selected in the withholding taxcategories.
On the detail screen for the Customizing settings you can find moreinformation, for example, about the Posting indicators or theOfficial withholding tax key in the screen area Withholdingtax code in the Quick Info for each indicator.
To view the business partner master data (customer or vendor), on thescreen Check Business Partner, choose Display businesspartner data. The master data of the business partner appears andyou can check the company code-dependent withholding tax settings andchange them if necessary.
To view the Customizing settings for a selected withholding taxcategory, on the screen Check Business Partner, chooseDisplay company code data. The screen Withholding Taxinformation of the Company Code per Withholding Tax Categoryappears.

• Check withholding tax type

Enter a withholding tax country, a withholding tax category, awithholding tax code, and possibly, a company code; choose Checkwithholding tax type.
A list with information about the withholding tax category, withholdingtax code, and potentially, company code-specific information appears.
The layout and the names of the list are the same for the listexplained under Check business partner (see above).

Calculate withholding tax
You can analyze the withholding tax calculation using a document thathas already been posted or a new document. The simulation or posting ofa document is recorded, and you can then evaluate it.
You receive a results list with details of the calculation (forexample, item, vendor, customer and withholding tax category
). You can also display the individual steps of the (simulated)withholding tax calculation:


• Posting time of withholding tax category


• Withholding tax base amount in document currency (only for posting of
an invoice for all withholding tax categories)

• Withholding tax base amount in local currency (for posting of an
invoice or payment for all withholding tax categories)

• Withholding tax amounts in local currency

Withholding tax amounts are not generally translated back into documentcurrency. There are more details in the interim results (for example,withholding tax base amounts, manual withholding tax base amounts andwithholding tax amounts, exemption, minimum and maximum amounts,accumulation values). Details about self-withholding, rounding, basecalculation for central invoice and interim results from formulas arenot available here.
If you entered withholding tax amounts manually when you posted adocument, this is noted in the recording. If an invoice where awithholding tax base amount was entered manually is paid, this is notnoted; in this case, the amount defined manually is specified in theinvoice and not the payment document.

• Calculation with reference document

To carry out a calculation using a reference document, enter a documentnumber, company code, and a fiscal year and choose Simulatecalculation. You receive a list of the calculation dependent on theline item, vendor or customer, withholding tax category, and thewithholding tax code. You can expand this list to evaluate therecording.
You cannot simulate documents that are not clearing documents (forexample, partial payments). For a calculation with reference documentand accumulation, the accumulation values valid on the posting date ofthe document are used.
To display a reference document, choose Display document. Thedocument is displayed in a new session.

• Calculation with standard transaction

To record a withholding tax calculation, proceed as follows:
Choose Start recording.
Open a new session and post a document.
Use one of the standard posting transactions (for example, FB60, FB70,F-43, F-53, F-28, F-22) in a new session or choose Open new session
; the predefined, so-called complex posting (transaction FB01)appears.
Execute a posting.
To check the posting, choose Evaluate recording.
If you want to post a payment and a partial payment, the report onlyrecords one vendor account.

• Check field status

You can check the field status of the relevant fields for withholdingtax with regard to the reconciliation account and the posting key.
To check the field status of the reconciliation account, enter acompany code, a vendor, a customer, or an alternative reconcilationaccount; choose Update field status.
An overview of the field status with regard to the reconciliation keyappears.
To check the field status of the posting key, enter a posting key andchoose Update field status.
An overview of the field status with regard to the posting key appears.