In the next screen,Assign the Payment Amount to Appropriate Invoice so as to balance the Payment with the Invoice Amount

After completing the above entries Select the Withholding Tax Tab and Enter the Following

Assign the Payment Amount to Appropriate Invoice so as to balance the Payment with the Invoice Amount

You have successfully post the Outgoing Payment for Vendor

In this tutorial, we will learn to post the Outgoing Payment for Vendor in SAP

Enter the Vendor ID of the Vendor to be issued the credit memo

Enter the Document Date

Enter the Amount to be credited

Enter the tax code used in the original invoice

Check the Calculate Tax check box

Change company code

You will find that the company code at the top of the screen is different from the company code on the invoice.

You can click on company code and change the company code to the one for which you need to key an invoice in.

Prerequisites

Your gateway to success

Before you begin, ensure that you have the necessary authorizations and access rights to perform financial transactions in SAP. Additionally, you will need the following information:

1.     Vendor Details: Ensure you have the necessary vendor details, including vendor codes, tax identification numbers, and withholding tax rates.

2.     Invoice Data: Prepare the vendor invoices that need to be posted, including the invoice numbers, amounts, and relevant tax codes.

Step-by-Step Guide

Follow these steps to handle withholding tax in SAP during vendor invoice and payment posting:

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Vendor Invoice Posting

1.     Log into SAP: Enter your SAP username and password to access the SAP system.

2.     Open Transaction FB60: You can do this by either typing "FB60" in the command field at the top of the SAP screen and hitting Enter or by navigating through the SAP menu.

3.     Enter Document Date: In the FB60 transaction, the first field to complete is the "Document Date." This is the date of the vendor invoice. You can manually enter the date or use the current date by clicking the calendar icon.

4.     Vendor Details: In the "Vendor" field, enter the vendor code for the vendor you are receiving the invoice from. You can either enter the code directly or search for the vendor using the search function (F4 help).

5.     Invoice Data: Enter the invoice details, including the invoice number, posting key (usually "31" for incoming invoices), and the amounts.

6.     Withholding Tax Code: In the "Withholding Tax Code" field, enter the relevant tax code for withholding tax. This code is determined by the tax authorities and specifies the withholding tax rate.

7.     Amount Calculation: SAP will automatically calculate the withholding tax amount based on the tax code and invoice amount. Verify that the calculated amount is correct.

8.     Save and Post: To finalize and post the vendor invoice, click the "Save" button. SAP will generate a financial document for the invoice, including the withholding tax amount.

Vendor Payment Posting

1.     Log into SAP: If you are not already logged in, enter your SAP username and password.

2.     Open Transaction F-53: You can access this transaction by typing "F-53" in the command field or navigating through the SAP menu.

3.     Enter Document Date: Similar to invoice posting, in the F-53 transaction, enter the "Document Date," which is the date of the payment.

4.     Vendor Details: Enter the vendor code for the vendor you are making the payment to.

5.     Payment Amount: In the "Amount" field, input the payment amount, which should match the total amount on the vendor invoice, including the withholding tax.

6.     Withholding Tax Code: In the "Withholding Tax Code" field, enter the same tax code that was used during invoice posting.

7.     Save and Post: Click the "Save" button to finalize and post the vendor payment. SAP will generate a payment document, deducting the withholding tax amount, and complete the transaction.

Payment Confirmation

Once you have successfully posted the vendor invoice and payment with withholding tax in SAP, SAP will generate the necessary financial documents, and the transactions will be reflected in the financial records. You can also print or save these documents for your records.

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Enter the following info on the next screen.

1-Vendor number – Enter the vendor from who the purchase was made.

2-Invoice Date- The invoice date is the date the purchase was made. E.g., if a purchase was made on 1/1/2017, but the vendor did not send the invoice on 1/10/2017, the invoice date will be 1/1/2017

3-Posting date- This is the date when the posting hit the financial books. This was the date when we recorded the transaction in SAP. It is possible to purchase something on 1/1/2017, but only record the invoice in SAP on 2/15/2017. In this case, the posting date will be 2/15/2017.

4-Document type – This is usually KR for vendor invoices.

5-Amount- Enter the amount of the purchase

6- Reference number-This is usually the vendor invoice number. When the vendor calls us to inquire about a payment, this is the number he references.

7- Text- Can be used to identify what the purchase was. E.g., markers for all conference rooms.

8-G/L Account- The G/L account is the bucket used to classify these costs. E.g., if we purchased office supplies, then we would use the office supplies G/L account here.

9-Debit or credit- For an invoice, the G/L side will be debit as the vendor is credited.

10-Amount- The amount for this G/L. The amount on the vendor and the G/L should balance to 0.

11- Cost Center- Used for internal reporting. E.g., Cost center 1000, Dallas office. We can run reports on this cost center to find out how much the Dallas office is spending on office supplies.

See also here -->>

FB60-Create vendor invoice

Business scenario– Fb60 is used to create an invoice. These are direct invoices which are not coming from a purchase order. If the invoice is being created in reference to a purchase order, tcode, MIRO would be used.

Note-If you are using Vendor Invoice Management, then the invoice would be created through a DP.

Menu Path-Accounting-Financial Accounting-Accounts Payable-document entry-FB60 -Invoice.

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