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

SAP Term: withholding tax supplement

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: An additional tax calculated on the basis of withholding tax.

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• Key Concepts: 
  Withholding tax supplement is a component of the FI-CA Contract Accounts Receivable and Payable module in SAP. It is used to calculate and manage withholding taxes on payments made to vendors or customers. This includes calculating the amount of tax to be withheld, creating the withholding tax document, and posting the withholding tax document to the general ledger.
  
  How to use it: 
  To use the withholding tax supplement, you must first set up the withholding tax codes in the system. This includes setting up the tax rate, the type of tax (e.g. income or sales tax), and any other relevant information. Once this is done, you can then enter the withholding tax document in the system. This document will include information such as the vendor or customer name, the amount of tax to be withheld, and any other relevant information. Once this is done, you can then post the document to the general ledger.
  
  Tips & Tricks: 
  When setting up withholding tax codes, it is important to ensure that all relevant information is entered correctly. This includes ensuring that all applicable taxes are included in the code and that all rates are correct. Additionally, it is important to ensure that all documents are posted correctly to ensure accuracy in reporting and compliance with local laws and regulations.
  
  Related Information: 
  For more information on setting up and using withholding tax supplement in SAP FI-CA Contract Accounts Receivable and Payable module, please refer to SAP Help documentation or contact your local SAP support team.