<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tc/onlinemanual/000430" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Withholding tax postings</Title>
		<Keyword><Level1>Tax</Level1>
			<Level2>withholding tax postings</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>If you process a purchase invoice to which withholding tax applies, SSA ERP creates a sequence of postings for the various withheld income tax and social contribution amounts.</Paragraph>
		<ProcedureList><ListIntro>If you complete a tax declaration, SSA ERP creates the following financial postings:</ListIntro>
			<ListItemHead>Submit the tax declaration</ListItemHead>
			<ListItem><Paragraph>If you submit the tax declaration, SSA ERP creates contra postings of the tax amounts on the ledger accounts linked to the tax codes, and posts the total payable amount to the interim account for payable tax.</Paragraph>
			</ListItem>
			<ListItemHead>Make the payments</ListItemHead>
			<ListItem><Paragraph>If you process the standing order, SSA ERP creates a contra posting of the paid amount on the interim account for payable tax. If you use a different method to pay the tax or if you delete the standing order, you must create a journal entry to clear the tax interim account.</Paragraph>
			</ListItem>
		</ProcedureList>
		<Paragraph>The <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.tvat" role="formfield">Tax Type</GUIRef> of the group tax code indicates the moment at which the tax obligation arises.</Paragraph>
		<List><ListIntro>For withholding tax and social contributions, the tax type can be:</ListIntro>
			<ListItemHead><GUIRef href="/baanerp/tc/domains/tvat#normal" role="enum">Normal</GUIRef>
			</ListItemHead>
			<ListItem>The tax obligation arises at purchase invoice registration.</ListItem>
			<ListItemHead><GUIRef href="/baanerp/tc/domains/tvat#on.payments" role="enum">On Payments</GUIRef>
			</ListItemHead>
			<ListItem>The tax obligation arises at purchase invoice payment.</ListItem>
		</List>
	</GeneralSection>
	<ProcedureSection><SectionTitle>Postings for withholding tax on purchase invoice registration</SectionTitle>
		<Steps><StepsIntro>The purchase invoice has a group tax code which includes a VAT tax code and all types of withholding tax. The <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.tvat" role="formfield">Tax Type</GUIRef> of the tax code of is <GUIRef href="/baanerp/tc/domains/tvat#normal" role="enum">Normal</GUIRef>.</StepsIntro>
			<Step><StepTitle>Purchase invoice registration</StepTitle>
				<Paragraph>If you register the purchase invoice, SSA ERP creates the following postings:</Paragraph>
				<TABLE border="1" width="88%"><TBODY><TR><TH width="88">Amount</TH>
							<TH width="191">Debit/ Credit</TH>
							<TH width="203">Ledger account</TH>
							<TH width="132">Defined in session</TH>
						</TR>
						<TR><TD width="88">Costs</TD>
							<TD width="191">Debit</TD>
							<TD width="203">Account of the invoice line</TD>
							<TD width="132">Depends on the set up.</TD>
						</TR>
						<TR><TD width="88">VAT receivable</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#vat" role="enum">VAT</GUIRef> tax code</TD>
							<TD width="132" height="118" rowspan="5">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000" role="session">Posting Data for Singular Tax Codes (tfgld0171s000)</GUIRef> or <GUIRef href="/baanerp/tf/gld/tfgld0170s000" role="session">Posting Data for Multiple Tax Codes (tfgld0170s000)</GUIRef>
							</TD>
						</TR>
						<TR><TD width="88">Social contribution payable</TD>
							<TD width="191">Credit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#social.contrib" role="enum">Withholding Social Contribution</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Social contribution expense</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.ascc" role="formfield">Social Contribution (Company Expense)</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#social.cont.exp" role="enum">Social Contribution (Company Expense)</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88" height="118">Social contribution expense</TD>
							<TD width="191" height="118">Credit</TD>
							<TD width="203" height="118">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#social.cont.exp" role="enum">Social Contribution (Company Expense)</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Income tax payable</TD>
							<TD width="191">Credit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#income.tax" role="enum">Withholding Income Tax</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Accounts payable</TD>
							<TD width="191">Credit</TD>
							<TD width="203">ACP control account</TD>
							<TD width="132">
								<GUIRef href="/baanerp/tf/acp/tfacp0110m100" role="session">Accounts by Financial BP Group (tfacp0110m100)</GUIRef>
							</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
			<Step><StepTitle>Purchase invoice payment</StepTitle>
				<Paragraph>If you finalize the payment of the purchase invoice, SSA ERP creates the following postings:</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH width="88">Amount</TH>
							<TH width="191">Debit/ Credit</TH>
							<TH width="203">Ledger account</TH>
							<TH width="203">Defined in session</TH>
						</TR>
						<TR><TD width="88">Accounts payable</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/acp/tfacp0515m000#tfacp015.leac" role="formfield">ACP Control Account</GUIRef>
							</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/acp/tfacp0110m100" role="session">Accounts by Financial BP Group (tfacp0110m100)</GUIRef>
							</TD>
						</TR>
						<TR><TD width="88">Bank</TD>
							<TD width="191">Credit</TD>
							<TD width="203">Account selected for the transaction type used for the bank in <GUIRef href="/baanerp/tf/cmg" role="module">Cash Management</GUIRef>.</TD>
							<TD width="203"></TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
			<Step><StepTitle>Periodical withheld income tax and social contributions declaration</StepTitle>
				<Paragraph>If you submit the periodical withheld income tax and social contributions declaration, SSA ERP creates the following postings:</Paragraph>
				<TABLE border="1" width="97%"><TBODY><TR><TH width="88">Amount</TH>
							<TH width="191">Debit/ Credit</TH>
							<TH width="203">Ledger account</TH>
							<TH width="100">Defined in session</TH>
						</TR>
						<TR><TD width="88">Withheld income tax payable</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#income.tax" role="enum">Withholding Income Tax</GUIRef> tax code</TD>
							<TD width="100" rowspan="3">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000" role="session">Posting Data for Singular Tax Codes (tfgld0171s000)</GUIRef> or <GUIRef href="/baanerp/tf/gld/tfgld0170s000" role="session">Posting Data for Multiple Tax Codes (tfgld0170s000)</GUIRef>
							</TD>
						</TR>
						<TR><TD width="88">Social contribution payable</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#social.contrib" role="enum">Withholding Social Contribution</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Social contribution payable</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#social.cont.exp" role="enum">Social Contribution (Company Expense)</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Interim withheld income tax and social contributions payment</TD>
							<TD width="191">Credit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld1620m000#tfgld120.leac" role="formfield">Interim Tax Payment Account</GUIRef> of the tax declaration master.</TD>
							<TD width="100">
								<GUIRef href="/baanerp/tf/gld/tfgld1620m000" role="session">Tax Declaration Master (tfgld1620m000)</GUIRef>
							</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
			<Step><StepTitle>Periodical withheld income tax and social contributions payment</StepTitle>
				<Paragraph>If you proces the payment of the withheld income tax and social contributions declaration, SSA ERP creates the following postings:</Paragraph>
				<TABLE border="1" width="97%"><TBODY><TR><TH width="88">Amount</TH>
							<TH width="191">Debit/ Credit</TH>
							<TH width="203">Ledger account</TH>
							<TH width="100">Defined in session</TH>
						</TR>
						<TR><TD width="88">Interim withheld income tax and social contributions payment</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld1620m000#tfgld120.leac" role="formfield">Interim Tax Payment Account</GUIRef> of the tax declaration master.</TD>
							<TD width="100">
								<GUIRef href="/baanerp/tf/gld/tfgld1620m000" role="session">Tax Declaration Master (tfgld1620m000)</GUIRef>
							</TD>
						</TR>
						<TR><TD width="88">Bank</TD>
							<TD width="191">Credit</TD>
							<TD width="203">Account selected for the transaction type used for the bank in <GUIRef href="/baanerp/tf/cmg" role="module">Cash Management</GUIRef>.</TD>
							<TD width="100"></TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
		</Steps>
	</ProcedureSection>
	<ProcedureSection><SectionTitle>Postings for withholding tax on payment</SectionTitle>
		<Steps><StepsIntro>The purchase invoice has a group tax code which includes a VAT tax code and all types of withholding tax. The <GUIRef href="/baanerp/tc/mcs/tcmcs0136s000#tcmcs036.tvat" role="formfield">Tax Type</GUIRef> of the tax code of is <GUIRef href="/baanerp/tc/domains/tvat#on.payments" role="enum">On Payments</GUIRef>.</StepsIntro>
			<Step><StepTitle>Purchase invoice registration</StepTitle>
				<Paragraph>If you register the purchase invoice, SSA ERP creates the following postings:</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH width="88">Amount</TH>
							<TH width="191">Debit/ Credit</TH>
							<TH width="203">Ledger account</TH>
							<TH width="203">Defined in session</TH>
						</TR>
						<TR><TD width="88">Costs</TD>
							<TD width="191">Debit</TD>
							<TD width="203">Account of the invoice line</TD>
							<TD width="203">Depends on the set up.</TD>
						</TR>
						<TR><TD width="88">Interim VAT on payments</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.iavp" role="formfield">Purchase Tax on Payments (Interim)</GUIRef> of the <GUIRef href="/baanerp/tc/domains/ktax#vat" role="enum">VAT</GUIRef> tax code</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000" role="session">Posting Data for Singular Tax Codes (tfgld0171s000)</GUIRef> or <GUIRef href="/baanerp/tf/gld/tfgld0170s000" role="session">Posting Data for Multiple Tax Codes (tfgld0170s000)</GUIRef>
							</TD>
						</TR>
						<TR><TD width="88">Accounts payable</TD>
							<TD width="191">Credit</TD>
							<TD width="203">ACP control account</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/acp/tfacp0110m100" role="session">Accounts by Financial BP Group (tfacp0110m100)</GUIRef>
							</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
			<Step><StepTitle>Purchase invoice payment</StepTitle>
				<Paragraph>If you finalize the payment of the purchase invoice, SSA ERP creates the following postings:</Paragraph>
				<TABLE border="1" width="80%"><TBODY><TR><TH width="88">Amount</TH>
							<TH width="191">Debit/ Credit</TH>
							<TH width="203">Ledger account</TH>
							<TH width="203">Defined in session</TH>
						</TR>
						<TR><TD width="88">Accounts payable</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/acp/tfacp0515m000#tfacp015.leac" role="formfield">ACP Control Account</GUIRef>
							</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/acp/tfacp0110m100" role="session">Accounts by Financial BP Group (tfacp0110m100)</GUIRef>
							</TD>
						</TR>
						<TR><TD width="88">Interim VAT on payments</TD>
							<TD width="191">Credit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.iavp" role="formfield">Purchase Tax on Payments (Interim)</GUIRef> of the <GUIRef href="/baanerp/tc/domains/ktax#vat" role="enum">VAT</GUIRef> tax code</TD>
							<TD width="203" rowspan="6">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000" role="session">Posting Data for Singular Tax Codes (tfgld0171s000)</GUIRef> or <GUIRef href="/baanerp/tf/gld/tfgld0170s000" role="session">Posting Data for Multiple Tax Codes (tfgld0170s000)</GUIRef>
							</TD>
						</TR>
						<TR><TD width="88">VAT Reveivable</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#vat" role="enum">VAT</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Social contribution payable</TD>
							<TD width="191">Credit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#social.contrib" role="enum">Withholding Social Contribution</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Social contribution expense</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.ascc" role="formfield">Social Contribution (Company Expense)</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#social.cont.exp" role="enum">Social Contribution (Company Expense)</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Social contribution payable</TD>
							<TD width="191">Credit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#social.cont.exp" role="enum">Social Contribution (Company Expense)</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Income tax payable</TD>
							<TD width="191">Credit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#income.tax" role="enum">Withholding Income Tax</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Bank</TD>
							<TD width="191">Credit</TD>
							<TD width="203">Account selected for the transaction type used for the bank in <GUIRef href="/baanerp/tf/cmg" role="module">Cash Management</GUIRef>.</TD>
							<TD width="203"></TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
			<Step><StepTitle>Periodical withheld income tax and social contributions declaration</StepTitle>
				<Paragraph>If you submit the periodical withheld income tax and social contributions declaration, SSA ERP creates the following postings:</Paragraph>
				<TABLE border="1" width="97%"><TBODY><TR><TH width="88">Amount</TH>
							<TH width="191">Debit/ Credit</TH>
							<TH width="203">Ledger account</TH>
							<TH width="100">Defined in session</TH>
						</TR>
						<TR><TD width="88">Income tax payable</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#income.tax" role="enum">Withholding Income Tax</GUIRef> tax code</TD>
							<TD width="100">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000" role="session">Posting Data for Singular Tax Codes (tfgld0171s000)</GUIRef> or <GUIRef href="/baanerp/tf/gld/tfgld0170s000" role="session">Posting Data for Multiple Tax Codes (tfgld0170s000)</GUIRef>
							</TD>
						</TR>
						<TR><TD width="88">Social contribution payable</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#social.contrib" role="enum">Withholding Social Contribution</GUIRef> tax code</TD>
							<TD width="100" rowspan="2">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000" role="session">Posting Data for Singular Tax Codes (tfgld0171s000)</GUIRef> or <GUIRef href="/baanerp/tf/gld/tfgld0170s000" role="session">Posting Data for Multiple Tax Codes (tfgld0170s000)</GUIRef>
							</TD>
						</TR>
						<TR><TD width="88">Social contribution payable</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld0171s000#tfgld071.vacp" role="formfield">Purchase Tax</GUIRef> account of the <GUIRef href="/baanerp/tc/domains/ktax#social.cont.exp" role="enum">Social Contribution (Company Expense)</GUIRef> tax code</TD>
						</TR>
						<TR><TD width="88">Interim withheld income tax and social contributions payment</TD>
							<TD width="191">Credit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld1620m000#tfgld120.leac" role="formfield">Interim Tax Payment Account</GUIRef> of the tax declaration master.</TD>
							<TD width="100">
								<GUIRef href="/baanerp/tf/gld/tfgld1620m000" role="session">Tax Declaration Master (tfgld1620m000)</GUIRef>
							</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
			<Step><StepTitle>Periodical withheld income tax and social contributions payment</StepTitle>
				<Paragraph>If you proces the payment of the withheld income tax and social contributions declaration, SSA ERP creates the following postings:</Paragraph>
				<TABLE border="1" width="97%"><TBODY><TR><TH width="88">Amount</TH>
							<TH width="191">Debit/ Credit</TH>
							<TH width="203">Ledger account</TH>
							<TH width="100">Defined in session</TH>
						</TR>
						<TR><TD width="88">Interim withheld income tax and social contributions payment</TD>
							<TD width="191">Debit</TD>
							<TD width="203">
								<GUIRef href="/baanerp/tf/gld/tfgld1620m000#tfgld120.leac" role="formfield">Interim Tax Payment Account</GUIRef> of the tax declaration master.</TD>
							<TD width="100">
								<GUIRef href="/baanerp/tf/gld/tfgld1620m000" role="session">Tax Declaration Master (tfgld1620m000)</GUIRef>
							</TD>
						</TR>
						<TR><TD width="88">Bank</TD>
							<TD width="191">Credit</TD>
							<TD width="203">Account selected for the transaction type used for the bank in <GUIRef href="/baanerp/tf/cmg" role="module">Cash Management</GUIRef>.</TD>
							<TD width="100"></TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>.</Paragraph>
			</Step>
		</Steps>
	</ProcedureSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000448" role="manual">Value added tax (VAT) postings</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000429" role="manual">To process tax declarations</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
