on 03-25-2014 3:55 PM
Greetings!
I have the following problem:
Withholding Tax Type is configured in Calculation:
Base Amount > Net Amount
Cash Discount > Cash discount calculation before w/tax calculation
Problem scenario:
We entered an invoice (through MIRO with PO) for a total of 51,000 usd that have two items:
1.- 50,000 usd
2.- 1,000 usd
During MIRO we specified that only item 1 (50,000 usd) is eligible to a Cash Discount that would be of 3%.
Cash discount is being calculated correctly with an amount of 1,500 usd (3% of 50,000).
But during the Payment Run (F110) the Withholding Tax Base Amount calculated by the system is 49,470 usd (51,000 usd - (51,000*3%)).
As during in MIRO the item 2 (1,000 usd) was entered specifying it is W/o Cash Discount then the expected result should be:
A Withholding Tax Base Amount of 49,500 usd (51,000 - (50,000*3%)) instead of the 49,470 usd.
System is calculating a W. Tax Base Amnt as if all items of Invoice are eligible for a Cash Discount when that is false. Some items (as #2) are not eligible for a Cash Discount from Vendor...
Thank you!
Hello Arturo,
As per my knowledge ,both line items having cash discount payment term's in FI document. Withholdign settings as follows in my system. I tested and got results,
1. Withholding tax type create under payment & selected base amount as Net
2. Select second radio button C/dis pre withholding tax.
Regards
Mani Kumar
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Thank you Mani Kumar,
But that's what we already have in customizing:
The problem is that during Invoice Verification (MIRO) we specified that only one of the items is eligible to Cash Discount (we set for item #2 that it is W/o Cash Discount😞
The invoice is posting correctly identifying the correct disc. amount of 1,500 (50,000*3%):
The problem is during the Payment Run where the system determines a Cash Discount that applies but when calculating the W/Tax Base Amount it do the following:
51,000*3% = 1,530
W/Tax Base = 51,000 - 1,530 = 49,470 usd
F110 Proposal generated:
It is false that the Cash Discount applies to all items, the expected result should be:
(only eligible items for Cash Discount) 50,000*3% = 1,500
W/Tax Base = 51,000 - 1,500 = 49,500 usd not 49,470
Thanks
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