Tasks to be completed when creating an operating procedure (from creation to publication)

  1. Enter the Title of the procedure

  2. Add the following Labels : 

  3. Fill all fields as described

  4. Once the procedure is completed, publish it using the SBS-RtR approval workflow



Domain: Country Accounting



Responsibility area: N/A


Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)

 


Scope 


ERP 


Frequency

 


References

CJ20N; KB15N


Forms

US 5782 Withholding Tax Template


Attachments

N/A



 

 

 

1. Objective and Scope

1.1 Objective of this Procedure

The purpose of this OP is to explain how to perform the posting of Withholding Tax and its credit note.

1.2 Scope

This OP applies to company 5782 Solvay Specialty Polymers that invoice companies inside the group located in countries that apply withholding tax.


2. Definitions

See Finance Glossary:

 

3. Tasks description

For all clients listed in the CROCO (change CROCO)(error) project I05782SPGF, a withholding tax needs to be paid by the customer for the services that are provided by a foreign companies in those countries (protection of the market). As the withholding tax is retained at the source, on the client side, CICC don’t receive the total amount of the invoice, a credit note need to be issued to regularize the customer account.

At the end of the month, the accountant looks at all the invoice issued during the month and makes a total credit note for all of them, based on the percentage that is given below.

3.1. Responsibilities

Local Responsibilities:

  •  To complete (error)

SBS Responsibilities: 

  • Performing the calculation and the posting for withholding tax;
  • Checking the posting consistency (right number of posting, one for each customer and in the right currency);
  • Timing: The posting of withholding tax has to be performed on a monthly basis, after the last invoice created (generally invoice must be done on D - 1 at the latest).

3.2. Periodicity

The extraction and posting should be done until D+1.

It is possible that special requests arrive from local team via Freshdesk.

3.3. Retrieving and Uploading Data

3.3.1. Retrieving Data

Go to CJ20N and open the project I05782SPGF:


Verify if there is a new company code in project and if it needs the withholding tax depending of the country: 

**5782 only do it for Indian company 5955**

The invoices are made by Europe SBS Intercompany Team.


Open the WBS element I05782SPGF05955 in CJI3 with the closure month:


Identify the KB15N post of the original invoice made by Europe SBS Intercompany Team and double click on it:


Verify the month on "doc. text" field and filter the "Receiver WBS Element" with I05782SPGF05955


Verify the "Sender CCtr", the "Cost Element", the "Crcy" (the credit not needs to be done with this currency) and the "Text" (there will be 3 lines with different cost elements, pay attention!)


Copy those information and paste on attached excel "US 5782 Withholding Tax Template", tab GBU item:


In tab template, the formula will calculate the withholding tax rate (10%) of the total invoiced. Then, you need to copy the KB15N post (from column A to AK):

3.3.2. Performing the Post

Copy the information showed in previous step (tab template) and paste it on KB15N transaction in SAP. Do not forget to change:

  • Doc. Date
  • Postg Date
  • Period
  • Scrn var. = SAP All
  • Input Type = List Entry


Verify the information before post, if it was pasted correctly in columns.

Check and verify the currency used – It should be the same as the one used on the original posting, if the invoice were posted using EUR, than the credit note should be done in EUR;

After posted, proceed with the CROCO (change CROCO)(error) invoice creation.

3.3.3 Informing locals

Local accountant (CAM) should be informed that the process was performed. Send a copy of Credit Note to:

3.4. Person to Contact (to remove?) (error)


End of document.