What is variable withholding tax supplement in SAP FI-CA - Contract Accounts Receivable and Payable?

SAP Term: variable withholding tax supplement

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A withholding tax supplement that makes it possible to make your own individual entries for the base amount, tax amount, and tax rate for each line item, rather than having the system determine these using rules entered in Customizing.

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• Key Concepts: 
  Variable withholding tax supplement is a component of the FI-CA Contract Accounts Receivable and Payable module in SAP. It is used to calculate the withholding tax supplement for a contract account. This supplement is calculated based on the difference between the withholding tax rate and the tax rate applicable to the contract account. 
  
  How to use it: 
  The variable withholding tax supplement component can be used to calculate the withholding tax supplement for a contract account. This is done by entering the withholding tax rate and the applicable tax rate for the contract account into the system. The system will then calculate the difference between these two rates and use this difference to calculate the withholding tax supplement. 
  
  Tips & Tricks: 
  When entering the withholding tax rate and applicable tax rate into the system, make sure that they are accurate. This will ensure that the system calculates the correct withholding tax supplement for the contract account. 
  
  Related Information: 
  For more information about variable withholding tax supplement, please refer to SAP Help documentation or contact your local SAP support team.