Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance

      • E.g. 2: France Operation in Financial Accounting:
        • Labels to be used: country_accounting, france, financial_accounting
          (for country operations, the Domain is always country_accounting)


3. Fill in all fields as described above

 4. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance 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

3. Remove the icon when not applicable


ERP

4. Remove the icon(s) when not applicable


Frequency

5. Remove the icon(s) when not applicable


References

6. Add the link to SAP transaction(s) (when it exists)

FBL3N; S_P00_07000134


Forms

7. Insert the links accordingly and change the link text with the OP name

TEMPLATE_Ritenuta d´Acconto_CU202Y.xlsx

Attachments

Storage location of the files shared with CAM


Previous OP << >> Next OP



1. Objective and Scope

1.1. Objective of this Operation

Withholding tax means, that Solvay entities assumes the responsibility from the supplier to pay due taxes to the fiscal authorities. It is known in Italy as RITENUTA D' ACCONTO and corresponds to the amount of withholding tax to be paid to the tax authorities on invoices effectively paid, by the 16th of the month following the date of the payment of the invoice. 

Based on this procedure, we will then summarize the information of the withholding tax on third parties paid in a specific model, called Single Certification (Certificazione unica - CU) to be submitted no latter than 31 March Y+1. The withholding agents use the Single Certification (CU), to certify the income from employment and similar, the income from self-employment, commissions and other income as well as the fees deriving from short lease contracts. 

The purpose of this procedure is, in a first stage, to identify all invoices paid and calculate the amount of tax withheld to be paid and with a set of checks to ensure that possible errors have been identified and corrected, maintaining a database and the overview of the annual declaration.

1.2. Scope

This procedure applies to all Italian companies:

    • 0270 : SOLVAY CHIMICA (IT)
    • 0279 : SOLVAY (IT)
    • 5835 : SOLVAY SPOL IT
    • 6277 : SOLVAY ENERGY SERVICES IT
    • 6306 : COGEN SPINETTA
    • 6328 : COGEN ROSIGNANO
    • 8090 : SOLVAY SOLUTIONS IT
    • 7257 :  CYTEC PROCESS MATERIALS MONDOVI


2. Definitions

See Finance Glossary:


3. Tasks description

3.1. Periodicity


 Finance Operations team is responsible for the monthly procedure to be performed until D6 (the lattest), to ensure that the payment is approved by the 16th of each month.

 Accounting platform is responsible for the preparation and accuracy of the annual declaration Single Certification (Certificazione unica - CU) that should be prepared in February.

3.2. I prepare the information of the withholding tax to be paid on a monthly basis


Before starting, you should be aware that there is a form that is used to support in the monthly justification and annual declaration preparation. 

This file is the base of all work to be done and applicable for all systems, despite the different ways of working in each and is composed by 4 sheets: 

 1. DATABASE - Vendor information to support preparation of the yearly declaration. Maintenance under accounting platform responsibility;

 2. RESUME - Where all information is resumed (monthly amounts calculated, efective payment information, account reconciliation and some analysis of the partners);

 3. Detailed Withholding Tax Report - Where extraction from SAP of all suppliers identified with withholding tax should be analysed;

 4. Year Withholding Tax Report - Template required for the submission of the yearly declaration, simple compilation of all information of the year. Maintenance under accounting platform responsibility.


3.2.1. I prepare the information for PF1 companies

3.2.1.1. I run the SAP transaction S_P00_07000134 - Generic Withholding Tax Report


Run transaction S_P00_07000134 - Italy withholding tax reporting

1) Select Variant RITENUTA D'ACC


2) Several parameters are already filled you just need to confirm:

        • Company code
        • Period (should always be the previous month)

 

3) Execute:

It will pop up an additional screen but you can go ahead: 

The result will be similar to:


4) Last step is to extract the data to excel and copy it to the template indicated.

  If you save it " In Google Drive" it will generate a google sheet with all the details as in excel. 


With this extraction we will have an overview of all movements in the accounts and provide detailed information about the vendors we are paying the withholding tax for and you just copy to sheet "Detailed Withholding Tax Report" from column E to U. 

3.2.1.2. I calculate the monthly F24 payment

By principle we have to pay the WHT only for those invoices effectively paid reflected in account PF1 2452090000/ WP1 / PE1.

This is valid for all supplier that have in it's master data the withholding tax indicators updated and when invoices/credit notes are booked it should be indicated the base amount and the WHT to pay.

See example of supplier FEDERICO CIACCIO (FK03):

Invoice example:



Taking in consideration that at the time of the assignment to CICC, the WHT is posted temporary in account 2452090100 (KS document) and only at the due date of the invoice (= real payment date to the vendor) the amount is cleared and transferred to account 2452090000 - Withholding taxes payable-others, it's in account 2452090000 that we find the WHT to be paid. 

Having that as a second step open the template indicated in the end of the procedure.


The extraction is providing us all the invoices posted within the period with withholding tax to be paid. From this list we will need to confirm if there are invoices from previous periods paid in the current month and if invoices posted will be paid in the future. 
For that, open transaction FBL3N with open items at end of each month for account 2452090000 and confirm with the details extracted.
Go to the file, sheet Detail RITENUTA D'ACCONTO and add in column A the month of the payment:

      • If invoice paid in the current month add the number correspondent to the month (1 to 12 or January to December)
      • If invoices posted will be paid in the future leave it blank.


Note that in some cases you may have differences between the vendor extraction and SAP due to manual postings, contracts cancellation, etc. In these cases check line items in the SAP account and add it in the file sheet . 
Refresh the pivot table from sheet F24 PAYMENT to calculate the total amount to be paid in the month.

 

In the end the total amount to be paid in the current month reflect the open items balance of account 2452090000 and the invoices we are not considering reflect the amount open in account 2452090100. 
Take as example March 2017 for company 0270: 



 

As soon as you finalize this check send a message to CAM and Accounting Platform indicating the amount to pay for the month in analysis and the link to the filled template to ensure that the F24 payment is done.

3.2.1.3. I make a consistency check

By the end of the month after the booking of the bank movement F24 (1040 + 1038) you can complete the procedure by checking and clearing the a account 2452090000. 
Complete the information in the table for future reference and in case of differences add a comment and report to CAM and Accounting Platform.




3.2.2. I prepare the information for Solvay Solutions.

3.2.2.1. I run the SAP transaction S_P00_07000134 - Generic Withholding Tax Report:

Run transaction S_P00_07000134 - Generic Withholding Tax Report:

1) Select Variant RITENUTA D'ACC


2) Several parameters are already filled you just need to confirm:

    • Company code
    • Period (should always be the previous month)

 

3) Execute.

The result will be similar to:


4) Last step is to extract the data to excel and copy it to the template indicated.


and:

 


With this extraction we will have an overview of all movements in the accounts and provide detailed information about the vendors we are paying the withholding tax for. 

3.2.2.2. I check whitholding taxes for payment performed during the month


Run transaction  Z3F_FA_AP_WHTAX_TRF


select variant RITENUTA_8090, then with the documents not paid in the previous months, retrieve the documents in monthly F24 payment google file and thed documents extracted before, filter by Dcoument No., you will see which documents were paid in the month.


3.2.2.3. I calculate the monthly F24 payment

By principle we have to pay the WHT only for those invoices effectively paid. 
Having that, as a second step open the template indicated in the end of the procedure. 
The file is cumulative and copy the information extracted in 3.2.2.2 to column B:


The extraction is providing us all the invoices posted within the period with withholding tax to be paid. From this list we will need to confirm if there are invoices from previous periods paid in the current month and if invoices posted will be paid in the future. 
For that, open transaction FBL3N with open items at end of each month for account 44900900 and confirm with the details extracted.
Go to the file, sheet Detail RITENUTA D'ACCONTO and add in column A the month of the payment:

  • If invoice paid in the current month add the number correspondent to the month (1 to 12)
  • If invoices posted will be paid in the future leave it blank.


Refresh the pivot table from sheet F24 PAYMENT to calculate the total amount to be paid in the month.

 

In the end the total amount to be paid in the current month reflect the open items balance of account 44900900. In case of manual payments or corrections (not reflected in the vendor accounts) you will have to add it manually in the sheet Detail RITENUTA D'ACCONT. 
Take as example March 2017 for company 8090: 

 



As soon as you finalize this check send a message to CAM and Account Platform indicating the amount to pay and the link to the filled template to ensure that the F24 payment is done.

3.2.2.4. I make a consistency check

By the end of the month after the booking of the bank movement F24 (1040 + 1038) you can complete the procedure by checking 44900900. Complete the information in the table for future reference and in case of differences add a comment and report to CAM and Account Platform. 




3.2.3. I prepare the information for Cytec Process Materials Mondovi

3.2.3.1. I run the SAP transaction FBL3N for account 32001120

Run transaction FBL3N with variant /WHT 7257


With this extraction we will have an overview of all movements in the accounts and provide detailed information about the vendors we are paying the withholding tax for. 

3.2.3.2. I make a consistency check

By the end of the month after the booking of the bank movement F24 (1040) you can complete the procedure by checking 32001120. Complete the information in the table for future reference and in case of differences add a comment and report to CAM. 


End of document.