Withholding Tax to be calculated based on accumulated slab amount in formula table.

[former_member722344]

Hello SAP Expert's,

Kindly help to achieve below scenario.

I have maintained two condition successfully as per given below screen. if amount is less than 7.5 crore then TDS should be deducted 0.20% and if amount is more than 7.5 crore, than TDS should be deducted @ 2%.in Withholding formula table.

Now, Suppose, I have 100 invoices with 7.50 Lakh. which total become 7.5 Crore. which TDS rate would be 0.20% calculating correct as per first condition in formula table.

And after this, I post another one invoice. which base amount is Rs 10,000. So far, Invoice accumulated limits has reached to second condition and its should have deduct TDS 2% rather than 0.20%.

But Invoice still deducting 0.20%. TDS rather than 2%. How system will determine invoice accumulated value for a particular vendor and will deduct TDS accordingly.

[sanilbhandari]

Hi

You have to maintain the with accumulation type with the radio button as below:

You could maintain period as 4 in case your fiscal year variant starts from April of calendar year. There after the formulae should work as you expect. I would suggest to test in a sandbox enviornment first.

Thanks & Regards

Sanil Bhandari

[former_member722344]

Hello Mr. Bhandari,

Thanks for the response.

I have maintained accumulated Type along with slab rate in formula table. Even after that, TDS not calculated accordingly as per given below screen.

Withholding Formula table

Accumulated Type Parameter

Document posted but not working as per Formula table.

[former_member722344]

Document posted but not working as per Formula table.

Cumulative values not updated in Table.

[former_member722344]

Hi, Document got posted but value did not updated in cumulative table.

First invoice posted amount 8 CR on 22.08.2022 with TDS @ 2%. That is fine but after this i did posted another invoice amount 7.5 CR but its calculating TDS 0.20% rather than 2%. Even after that, i had post one another invoice amount 10,000 for testing. Because, First two invoice sum 8 Crore + 7.5 Crore = 15.5 Crore. So, it should have taken TDS 2% not 0.20%.

[former_member722344]

I found the solution to complete above scenario ! Thanks

[Gustavo_Vazquez]

Hi,

Check the accumulation type

IMG:
Financial Accounting
Financial Accounting Global Settings
Withholding Tax
Extended Withholding Tax
Calculation
Withholding Tax Type
Define Withholding Tax Type for Invoice Posting

Kind Regards

[former_member722344]

Thanks for your response !

Under 'Define Withholding Tax Type for Invoice Posting'

Have Accumulated parameters. Which is applicable for period wise but I wanted to know that how system will deduct tds basis on accumulated value as lower tds rate slab.

For which, i have already formula in above screenshot but it doesn't determined accumulated value at the time invoice posting . Because, I did posted first invoice with 7.5 Crore @ 0.20 % and right after I did post invoice with 10,000, where system still taking tds 0.20% tds rather than 2%.

[Gustavo_Vazquez]

If the WTax Indicator is set to formula, then it should withhold as expected.

Check table WTAD and analyze both documents.

In the formula is calculating on millions, but the invoice is in thousands. I hope the numbers are correlated.

Kind Regards