What is revenue posting from withholding tax in SAP PSM-FM - Funds Management?

SAP Term: revenue posting from withholding tax

• Component: PSM-FM

• Component Name: Funds Management

• Description: A process based on a report that identifies payments that require withholding tax amounts to be transferred from a withholding tax account to a revenue account. The report tracks the original documents related to a payment and automatically posts additional documents for each type of withholding tax deducted from the payment. The document types used to post withholding tax as revenue are defined in Customizing. Processors can use automatic processing for all items or just some items and select items from a worklist for manual processing. The worklist is also used to monitor the processing status of the items. This process is typically used by public sector organizations in Spain.

Smart SAP Assistant

• Key Concepts: 
  Revenue posting from withholding tax is a process in SAP Funds Management (PSM-FM) that allows for the automatic posting of revenue from withholding tax. This process is used to ensure that the revenue from withholding tax is correctly posted to the correct accounts and that the correct amount of tax is paid. 
  
  How to use it: 
  To use this process, first you must set up the withholding tax codes in the system. This will allow you to specify which accounts should be used for the revenue posting from withholding tax. Once this is done, you can then enter the withholding tax amounts in the system and the system will automatically post the revenue from withholding tax to the correct accounts. 
  
  Tips & Tricks: 
  It is important to ensure that all of the withholding tax codes are set up correctly in order for this process to work properly. Additionally, it is important to ensure that all of the withholding tax amounts are entered correctly in order for the system to post the correct amount of revenue from withholding tax. 
  
  Related Information: 
  For more information on setting up and using revenue posting from withholding tax in SAP Funds Management (PSM-FM), please refer to SAP's documentation on Funds Management.