This article will help you understand how withholding tax report is generated in sap. These reports are needed in filling withholding tax returns with withholding tax authority.
What's the need for tax reports ?
The person/ authority which deduct withholding tax from payment to payee are liable to file withholding tax returns with the tax authority before a date specified by tax authority. Non-compliance results in heavy penalty.
For filling withholding tax return, company has to submit withholding tax data and other details of the transactions in specific report format as described by tax authority.
How SAP helps in producing withholding tax report quickly ?
Whenever an accounting document is posted in sap which has withholding tax involved, withholding tax data along with other details of the transaction gets stored in various tables in the database.
Document header data gets stored in table BKPF
Document line item data gets stored in table BSEG
Withholding tax information gets stored in table WITH_ITEM
Now you know that data is present in tables, all you need to do is write a program (ABAP code) which can fetch data from these tables and display in the report format.
Sap provides some standard reports (standard program) which can fetch data from tables and display output in report format. Custom program can also be developed to fetch data from tables and display output in specific format as needed.
Let’s take example to understand how withholding tax reports can be prepared
Below accounting document is posted in sap
Withholding tax data gets stored in table WITH_ITEM
Sap offers some standard reports; one of them is shown below (just as an example).
Standard withholding tax report: S_P00_07000134
Similarly customer programs (reports) can be written to fetch data from tables (database) and display output in specific report format.
GL ACCOUNTING
- What is SAP FICO ?What business requirement is fulfilled in this module?
- What is enterprise structure in sap fico?
- What is GL account? What is account group? What is operational chart of accounts?
- What is the need of country chart of account or alternate chart of account? How country chart of account helps fulfill a business requirement?
- What is the need for group chart of account? How group chart of account helps in consolidation of financial data?
- What is non leading ledger in sap fico?
- What is company code global settings? What global parameter is assigned to company code?
- What is fiscal year variant? Why fiscal year variant is assigned to company code?
- What is posting period variant? Why posting period variant is assigned to company code?
- What is field status variant? What is field status group?
- What is document type in sap? Explain the purpose of document type?
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- What is posting key? what is the use of posting key?
- Document header & line items capture information of business transaction.
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ACCOUNTS PAYABLE
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ACCOUNTS RECEIVABLE
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- Understanding order to cash cycle in sap.
- Understanding SD FI integration in very simple terms.
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TAX ACCOUNTING
- How sap helps in tax accounting?
- Tax configuration in sap: Tax procedure, Tax code & Tax jurisdiction code
- Concept of tax jurisdiction code & tax jurisdiction structure
- Significance of “Tax category & Posting without tax allowed” in GL master.
- Tax base amount and Discount base amount
- Assigning tax code V0 & A0 for non taxable transaction?
- Deductible input tax vs non deductible input tax
WITHHOLDING TAX
- Withholding tax in sap explained with example.
- How sap overcomes challenges in managing withholding tax?
- Withholding at the time of invoice or payment
- Withholding tax configuration in sap
- Business place & Section code in sap
- Withholding tax certificate numbering in sap
- Withholding tax report for filling tax returns
ASSET ACCOUNTING
- How sap helps in asset accounting?
- What is meant by asset accounting?
- What is the use of asset class?
- What is the use of depreciation key in asset accounting?
- Depreciation area and Chart of depreciation in sap.
- Derived depreciation area VS real depreciation area?
- Understanding asset accounting configuration needed in sap
- GL account determination for posting asset transaction
- Asset transaction and corresponding accounting document?
- How depreciation is posted in sap?
SAP CONTROLLING