3695531 - Inconsistent withholding tax between cancellation and original credit note in SD

Symptom

The cancellation document does not contain withholding tax amount, but the initial credit note does.

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Environment

SAP S/4HANA Cloud Public Edition

Reproducing the Issue

Withholding tax was not posted in the cancellation

See in App Display Billing Documents (VF03) From menu Select Environment -> Display Document Flow

Manage Journal Entries -> Display journal Entries

Cause

•Accumulation withholding tax is activated.

•Withholding tax Base Exempt Amount is maintained.

•The accumulated Withholding tax base amount of Original/Reversal documents is different.

•The Reversal JE is created by AC_DOCUMENT_CREATE, instead of AC_DOCUMENT_REVERSE.

See Configuration activities:
Define Withholding Tax Type for Invoice Posting (ID 104225)
Define Min/Max Amounts for Withholding Tax Types (ID 103020)

Resolution

The system behaviour is correct.

If document has been cleared already (at least one of its items), it cannot be reversed by reference (AC_DOCUMENT_REVERSE) anymore but has to be reversed by inverted posting (AC_DOCUMENT_CREATE). The latter will recalculate withholding tax.
Because of the special withholding tax settings(Accumulation and Exempted base amount) , the withholding tax amounts of recalculation and original credit memo can be different.

Keywords

KBA , FI-AP-AP-Q-2CL , Withholding Tax (Calculation) (Public Cloud) , How To

Product

SAP S/4HANA Cloud Public Edition all versions

Attachments

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