0

0.2Customizing and Master Data Information

Unit: Extended Withholding Tax

Topic: Customizing and Master Data Information EWT

 This section deals with Customizing and master data information that
will be used for training exercises.

0.3 Organisational Units

0.4 Company Code 0.50001

0.6 Business Place 0.7IN01,IN02, IN03

0.8 Vendor- Normal SAP-EWT

0.9 Vendor- Onetime 0.10OTV-EWT

0.11 Customer 0.12KTCUST

© SAP AG Chapter 13 -Page 1 of 15

0.13 Customization Information:

0.14 Section Invoice

Payment

0.15 Tax 0.16Tax 0.17 Tax 0.18Tax

type Code type Code

0.19194C 0.20 W1 0.21W1 0.22WA 0.23WA

0.24194C 0.25 W2 0.26W2 0.27WB 0.28WB

Surc.

0.29194I 0.30 W3 0.31W3 0.32WC 0.33WC

0.34194I 0.35 W4 0.36W4 0.37WD 0.38WD

Surc.

0.39

0.40

0.41

0.42 Exercises

Unit: Extended Withholding Tax

Topic: Basic Cycle for EWT Posting

At the conclusion of these exercises, you will be able to:

 Post Tax EWT on Invoices and Down Payments

© SAP AG Chapter 13 -Page 2 of 15

To access Accounts Payable:
Accounting  Financial accounting  Accounts payable-Document Entry-
Create Invoice

13.1.1 Create Invoices:

Enter Document Date, Posting Date
Enter Company Code 0001
Enter Currency INR
Enter Vendor SAP-EWT.
In the Next Screen, Enter Amount 1000:
Enter Business Place IN01.
Press Enter.
In the Withholding Tax Pop-up, Observe the tax codes for Sec 194C and 194I
Which are relevant both for invoices and down payments.
Remove Tax codes except w1 and w2.
Note that you can enter the base amounts and tax amounts manually if
customizing for tax type permit.
Post.
In Document Display, choose Variant 1EWT . Note Display of payment due
date and reference fields. Note that Business Place is copied on to all EWT
lines.

13. 1.2 Create Down Payments:

Accounting  Financial accounting  Accounts payable-Document
Entry- Down Paymentsdown Payments
Enter Document Date, Posting Date
Enter Company Code 0001

© SAP AG Chapter 13 -Page 3 of 15

 Enter Currency INR
Enter Vendor SAP-EWT.
Special GL indicator ‘A’.
Bank Account 113100

Amount 800 and press Enter.

Enter * in amount field and enter Business Place IN01.
Remove tax codes WC, WD from the Withholding tax screen pop-up.
Post.
In Document Display, choose Variant 1EWT. Note Display of payment due
date and reference fields.

13.1.3 Clear Down Payments

Accounting  Financial accounting  Accounts payable-Document Entry-
Down PaymentsClear down Payments.
Enter Document Date, Posting Date
Enter Company Code 0001
Enter Currency INR
Enter Vendor SAP-EWT
Enter Invoice number as in 1.1.
Choose Down Payments that are to be cleared.
Simulate. Observe Tax Adjustments line items.
Post.
Note: Tax Adjustments happen only when Invoice and Down payment tax
codes share the same section and same business place.

© SAP AG Chapter 13 -Page 4 of 15

 0.43
Exercises

Unit: Accounts Payable

Topic: Posting EWT for tax codes with Accumulations

At the conclusion of these exercises, you will be able to:

 Post a vendor invoice without Tax if accumulated tax base is less than
the limit set in customizing.
 Recover Tax from Vendors retrospectively if accumulated base
exceeds the customizing limit.

Note: Accumulations would work if set explicitly in customizing and if

formulas are used to set base for accumulations.

To access Accounts Payable:

Accounting  Financial accounting  Accounts payable
Accounting  Financial accounting  Accounts payable-Document Entry-
Create Invoice

13.2.1 Create Invoices:

Enter Document Date, Posting Date
Enter Company Code 0001
Enter Currency INR
Enter Vendor SAP-EWT.
© SAP AG Chapter 13 -Page 5 of 15
 In the Next Screen, Enter Amount 50000:
Enter Business Place IN01.
Press Enter.
In the Withholding Tax Pop-up, Observe the tax codes for Sec 194C and 194I
Which are relevant both for invoices and down payments.
Remove Tax codes except w3 and w4.
Note that you can enter the base amounts and tax amounts manually if
customizing for tax type permit.
Simulate.
Observe that no tax is deducted since the invoice base Rs.50000 is less than
the accumulation base set as Rs.120000.
Post.
Accounting  Financial accounting  Accounts payable-Document Entry-
Create Invoice

13.2.2 Create Invoices:

Enter Document Date, Posting Date
Enter Company Code 0001
Enter Currency INR
Enter Vendor SAP-EWT.
In the Next Screen, Enter Amount 100000:
Enter Business Place IN01.
Press Enter.
In the Withholding Tax Pop-up, Observe the tax codes for Sec 194C and 194I
Which are relevant both for invoices and down payments.
Remove Tax codes except w3 and w4.
Note that you can enter the base amounts and tax amounts manually if
customizing for tax type permit.
Simulate.
Note that tax is calculated on the total base of Rs.150000.
Post.
In Document Display, choose Variant 1EWT . Note Display of payment due
date and reference fields.
.

© SAP AG Chapter 13 -Page 6 of 15

 Exercises

Unit: Accounts Payable

Topic: Posting Withholding Tax on Credit Memos

At the conclusion of these exercises, you will be able to:

 Post a Credit memo with reference to an Invoice
 Refund Tax to Vendor on the Credit Memo Base

The Withholding Tax codes for Credit memos are automatically defaulted
from invoice if the invoice holds withholding tax codes.

Accounting  Financial accounting  Accounts payable-Document Entry-

Credit Memos
13.3.1 Create credit memos:
Enter Document Date, Posting Date
Enter Company Code 0001
Enter Currency INR
Enter Vendor SAP-EWT.
In the Next Screen, Enter Amount 1000:
Enter Business Place IN01.
Enter Invoice reference as in 13.2.2
Press Enter.
Note that the Withholding Tax Pop-up shows only tax codes for Sec 194C as
entered in the invoice
Simulate to observe tax refund and Post.
In Document Display, choose Variant 1EWT . Note Display of payment due
Date and reference fields.

© SAP AG Chapter 13 -Page 7 of 15

 Exercises

Unit: Accounts Payable

Topic: Remittance of Withholding Tax ( Challan Payment)

At the conclusion of these exercises, you will be able to:

 Remit withholding tax to Treasury.
 Reverse the remittance
 Rerun remittance
 Update Challan Number received from Bank
Check if CIN IMG customizing is complete for Challans. This
functionality will not work if Certificate numbering is active for tax
types.

13.4.1 User Menu: Challans-> Post

Enter Company Code 0001

Financial Year 2000
Business Place IN01
Enter Either Document Numbers or Posting dates
Enter Section 194C
Payment due dates and vendors can be entered to restrict selection
Recipient type as in Vendor Masters
Enter Payment document information for Posting date, Document date and bank
account.
Bank charges may be entered optionally.
In the line item display, choose items to be paid ,
Enter the payment amount through overview button and Post.
Note display of documents with challan numbers.
Note Drill down is possible for individual documents and for the clearing
documents
Note Surcharges are displayed separately if so set up in CIN customizing
© SAP AG Chapter 13 -Page 8 of 15
13.4.2 User Menu: Challans-> Reverse
Challans created can be reversed by reversing the clearing documents.
Enter Clearing Document , company code and Fiscal Year.
Save.
Choose Option Reset and Reverse.
Note Display of the reversal details.
Rerun Challan Update program as in 13. 13.4.1 for further processing.

13.4.3 User Menu: Challans-> Update Bank Challan Number

Enter Company Code, Fiscal year and the FI clearing document number
Enter the Bank Challan number, Date and House Bank Key
Execute.
Note display of Bank Challan Numbers and Internal Challan Numbers.

© SAP AG Chapter 13 -Page 9 of 15

 Exercises

Unit: Accounts Payable

Topic: Certificate Printing

At the conclusion of these exercises, you will be able to:

 Issue TDS certificates to Vendors
 Reprint Certificates
 Reverse certificates issued
 Re issue Certificates to Vendors
Check if CIN IMG customizing is complete for Certificates. This
functionality will not work if Certificate numbering is active for tax
types.

13.5.1 User Menu: Certificate-> Print

Enter Company Code 0001

Financial Year 2000
Business Place IN01
Enter Section 194C
Enter Posting Date range and Bank Challan dates.
Enter Certificate details.
Execute.
In the Pop-Up choosing Preview will not generate a certificate number. Only on
save, a certificate number is generated.
Note Message that certificates are generated.
Note display of annexes to certificates

© SAP AG Chapter 13 -Page 10 of 15

13.5.2 User Menu: Certificates-> Reprint
Certificates issued can be reprinted.
Enter Company Code 0001
Enter Section 194C
Enter Certificate number and date.
.Enter reprint details. Execute.
13.5.3 User Menu: Certificates-> Cancel
Enter Company Code 0001
Enter Section 194C
Enter Certificate number and date.
Execute.
The certificates are reversed. They can be printed again.

© SAP AG Chapter 13 -Page 11 of 15

 Exercises

Unit: Accounts Payable

Topic: Tax Adjustment ( TDS JV)

At the conclusion of these exercises, you will be able to:

 Pass an FI document being tax adjustment on an invoice for which
certificate is already issued.

Check if CIN IMG customizing is complete for Tax adjustment. If the

document does not hold an EWT line or if the tax lines are not cleared
(tax not remitted),this functionality will not work..

13.6.1 User Menu: Adjust->Post Vendor JV

Enter Document Number for which certificate is already issued.

Enter Company Code 0001.
Financial Year 2000
Enter JV reason and Posting Date.
Press Check Button to see relevance for JV.
Choose Option Amount Correction.
In the display of document , choose a tax line. Amount field is editable.
Modify the amount and Press Post.
Note display of document .

© SAP AG Chapter 13 -Page 12 of 15

0.44
Exercises

Unit: Extended Withholding Tax

Topic: Provisional TDS Postings.

At the conclusion of these exercises, you will be able to:

 Post EWT on Purchase Orders on which GR has been made, to an
EWT Provisions Account
 Reverse the Provisions after Invoice verification is done and tax is
recovered from the Vendor.

Customizing should have been done for Provisions Postings.

Create a Purchase Order for Company code 0001 or

Use Purchase Order 4500000276.
Ensure that Tax codes and Jurisdiction codes are filled up in Purchase Order.
Create a Goods Receipt referencing the Purchase Order.
13.7.1 User Menu: Provisions-> Post
Enter Company Code, Fiscal Year.
Enter the SR/IR account relevant for TDS
Enter Purchase Order and Vendor.
Enter Posting dates and Execute.
In the Input fields, the Base amount can be edited. Tax types (upto two) and tax
codes need to be entered along with Business Place.
Enter Tax types W1,W2 and Tax codes W2,W2
Enter Business Place IN01.
Post.
EWT is posted to Provisions Account.
13.7.2 User Menu: Logical Invoice Verifications ( MIRO)
Post Invoices referencing the Purchase Order. Ensure that Business Place is
filled up (IN01) and choose Withholding Tax codes W1 and W2.

© SAP AG Chapter 13 -Page 13 of 15

 Post.

13.7.3 User Menu: Provisions-> Utilize

The Program can be run in Test mode or real mode. Enter Company Code and
Fiscal Year and Posting date.
When processed in Test Mode, all Invoices on which Provisions were posted are
displayed.
When processed in real mode the provisions are reversed and debited to W.Tax
Payables Account.

0.45 Exercises

Unit: Accounts Payable

Topic: Customer Certificate Tracking

At the conclusion of these exercises, you will be able to:

 Post a customer Payment document on which Customer has deducted
TDS.
 Track Certificate issued by customer and transfer the amounts for
which customer has issued certificate to another account called
Customer Certificate Received Account.

Check if CIN IMG customizing is complete for Customer Certificates.

This functionality will not work if Certificate numbering is active for tax
types.

13.8.1 Create Down Payments:

Accounting  Financial accounting  Accounts receivable-Document Entry-
Down Paymentsdown Payments
Enter Document Date, Posting Date
Enter Company Code 0001
Enter Currency INR
Enter Customer KTCUST.
Special GL indicator ‘A’.

© SAP AG Chapter 13 -Page 14 of 15

 Bank Account 113100
Amount 800 and press Enter.
Enter * in amount field
Remove tax codes WC, WD from the Withholding tax screen pop-up.
Post.
In Document Display, choose Variant 1EWT.

13.8.2 User Menu: Customer Tax-> Clear

Enter Company Code 0001

Enter Section 194C
Financial Year 2000
Enter Posting Date range .
Enter Certificate details.
Execute.
Choose the Tax lines that are to be cleared.
Simulate and Post.
Note display of the items cleared together with Certificate Numbers.

© SAP AG Chapter 13 -Page 15 of 15