H E L P . C A I N T P H
R e l e a s e 4 . 6 C
Country Version Thailand
User Manual
(Preliminary Version)
H E L P . C A I N T P HCopyright
© Copyright 2000 SAP AG. All rights reserved.
No part of this brochure may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
Microsoft®, WINDOWS®, NT®, EXCEL®, Word® and SQL Server® are registered trademarks of
Microsoft Corporation.
IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®, AS/400®,
OS/390®, and OS/400® are registered trademarks of IBM Corporation.
ORACLE® is a registered trademark of ORACLE Corporation, California, USA.
INFORMIX®-OnLine for SAP and Informix® Dynamic ServerTM are registered trademarks of Informix
Software Incorporated.
UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of The Open Group.
HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web
Consortium, Laboratory for Computer Science NE43-358, Massachusetts Institute of Technology, 545 Technology Square, Cambridge, MA 02139.
JAVA® is a registered trademark of Sun Microsystems, Inc. , 901 San Antonio Road, Palo Alto, CA
94303 USA.
JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for technology
invented and implemented by Netscape.
SAP, SAP Logo, mySAP.com, mySAP.com Marketplace, mySAP.com Workplace, mySAP.com Business Scenarios, mySAP.com Application Hosting, WebFlow, R/2, R/3, RIVA, ABAP, SAP Business Workflow, SAP EarlyWatch, SAP ArchiveLink, BAPI, SAPPHIRE, Management Cockpit, SEM, are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.
1 General Information ... 5
1.1 Overview ... 5
1.2 Product Overview ... 5
2 Master Data ... 6
2.1 Company Code Master Data ... 6
2.2 Business Place/Branch ... 6
2.3 Customer/Vendor Master Data ... 10
3 xHTAXES ... 11
3.1 Tax Identification ... 11
3.2 Tax on Sales and Purchases (Value Added Tax) ... 11
3.2.1 Customizing Value Added Tax ... 11
3.2.1 VAT on Goods ... 15
3.2.2 VAT on Services (Deferred VAT) ... 17
3.2.3 Value Added Tax Reporting ... 20
3.3 Withholding Tax ... 23
3.3.1 General Information ... 23
3.3.2 Customizing Withholding Tax ... 24
3.3.3 Withholding Tax Calculation and Posting ... 32
3.3.4 Withholding Tax Numbering ... 36
3.3.5 Withholding Tax Reports ... 39
4 Check Management ... 52
4.1 Check Payable ... 52
4.1.1 Outgoing Check Status ... 52
4.1.2 Check Register ... 54
4.2 Check Receivable ... 56
4.2.1 Check Received Entry ... 56
4.2.2 Listing ... 68
5 Petty Cash ... 68
5.1 Using Account Payable function by setting up petty cashier as a vendor ... 69
5.2 Using Cash Journal Posting ... 70
6 Correspondence ... 74
6.1 Receipt/Invoice/Tax Invoice Printing--FI ... 74
7 Asset Management ... 78
7.1 Final Assets Value ... 80
7.2 Low Value Assets (LVA) ... 81
7.3 Leased Assets ... 81
7.4 Research and Development ... 82
7.5 Vehicles ... 90
7.6 Asset Reporting ... 90
7.6.1 Asset Depreciation List ... 90
7.6.2 Gain/Loss on Disposal Assets ... 91
7.6.3 Asset History Sheet ... 92
7.6.4 Assets Inventory List ... 92
8 Materials Management ... 94
8.1 Purchase Order ... 94
8.1.1 Purchase order excluded VAT. ... 94
8.1.2 Purchase order included VAT. ... 94
Customizing for layout set ... 96
8.2 Cost of Inventory ... 96
8.3 Logistics Invoice Verification ... 99
8.4 Stock card / Inventory and Raw Material (IMAT) Report ... 100
8.5 Inventory and Raw Material for Special Stock Report ... 102
8.6 Free Spare Part Issue Report for Warranty Product ... 104
9 Sales and Distribution ... 105
9.1 Free goods ... 105
9.3 Debit / Credit Note ... 114
9.4 Tax Invoice ... 114
9.5 Exchange rate for export ... 115
9.6 Withholding tax in Sales and Distribution ... 116
9.7 Down Payment ... 117
... 118
9.8 Vendor Consignment ... 119
9.9 Free Warranty ... 122
Appendix: Country Version Thailand Delta Information (release 4.6C compared with 3.1H and 4.0B) ... 126
Introduction ... 126
Organizational Unit ... 126
Value Added Tax (VAT) ... 127
VAT – Running Number Assignment ... 127
Automatic Tax Month Calculation ... 127
Transfer Deferred VAT ... 128
VAT reports ... 128
Withholding tax ... 129
Calculation and Posting ... 129
Reports ... 130 Check Payable ... 131 Check Receivable ... 131 Petty Cash ... 132 Correspondence ... 132 Assets Management ... 133 Materials Management ... 134
Sales and Distribution ... 135
1 General Information
1.1 Overview
This User Manual is a documentation for the Country Version Thailand of the SAP R/3 release 4.6C system. The Country Version Thailand has been delivered as an add-on solution for the R/3 releases 3.0D, 3.0F, 3.1H, and 4.0B. From 4.6C, the Thai-specific requirements are addressed in R/3 itself. The intention of this manual is to describe Country Version functionalities, how to use it and how to
configure the system to make these functionalities work. The users are strongly recommended to study this manual together with the standard documentation. This manual should be read in the early stages of the implementation project of the Country Version Thailand in the R/3 release 4.6C.
1.2 Product Overview
The Country Version Thailand offers the necessary functions to use the SAP R/3 system in Thailand. It covers both specific statutory requirements and common business practices. In the release 4.6C, the Country Version Thailand covers:
Accounting
Financial Accounting
• Value Added Tax (VAT)
• Withholding Tax
• Check Management
• Cash Journal
• Correspondence: FI-Tax Invoice/Invoice/Receipt Printing
• Asset Management Logistics
Materials Management
• Purchase Order
• Cost of Inventory
• Logistics Invoice Verification
• Stock Card and IMAT Report
• Inventory and Raw Material Report for Special Stock
• Free Spare Part Issue Report for Warranty Product
Sales and Distribution
• Free Goods
• Free of Charge
• Debit / Credit Note
• Tax Invoice
• Exchange Rate for Export
• SD Withholding Tax
• Down Payment
• Vendor Consignment
2 Master Data
In the Country Version Thailand, a new organizational unit called “Business Place/Branch” is one of a major localized key field. This new field has been added to several existing master objects to enable the standard functionality of R/3 to comply with the Thai legal requirements.
Other than the Business Place/Branch, the following master objects should be customized to support the Country Version Thailand functions:
• company code
• vendor/customer
2.1 Company Code Master Data
In Country Version Thailand the following Customizing settings are required for the company code global data in the IMG:
• Maintain the company’s VAT Registration number with the format ‘THxxxxxxxxxx’ Country Version Thailand is using the VAT registration field in the company code global data to store the company’s VAT registration number. However this field can only be used if the company code is in a EU country. Therefore you have to activate the ‘EU country’ field in the country definition of ‘TH’ - Thailand via IMG→ General Settings→Set countries→Define countries.
After maintaining the company’s VAT registration number in the company code global data, you then need to deactivate this ‘EU country’ field again in the country definition of ‘TH’.
The prefix ‘TH’ followed by the company’s VAT registration number is a required format.
• ‘Document entry screen variant’ needs to leave as blank.
In the former Thai add-on version, this field is required to be set as “2” in order to activate the withholding tax entry screen. However in this release 4.6C as standard version, the Country Version Thailand is using the functionality of extended withholding tax, therefore there is no need to set this field as ‘2’ any more. This field should be leave as blank.
Menu Path
IMG → Financial Accounting →Financial accounting global settings → Company code → Enter global parameters
2.2 Business Place/Branch
Place of business in Thailand means a place regularly used by a supplier for conducting his business and includes a place regularly used for manufacture or storage of goods. If companies register into the VAT system with several places of businesses, it is required by law that they have to book and report their VAT transactions separately by their registered locations.
In R/3 you can customize your place of business by using the organization unit called Business Place/Branch. This organization unit is designed intentionally to support the process of
booking/reporting all VAT transactions.
The following VAT reports are required to be submitted to the Revenue Department.
• Input Tax Report
• Output Tax Report
• Inventory and Raw Material Report
• Attachment tax form—Paw. Paw. 30 which prescribes by the Tax Authority
Normally each business place is booking its own transaction such as received tax invoices, received goods/services, issued goods/services as shown in following diagram:
-Purchase Order Purchase Order Purchase Order Goods Received Goods Received Goods Received Tax Invoices Tax Invoices Tax Invoices
Payment Payment Payment
However there are also cases that one business place has to make or operate something in the name of the other place. In this case the place with the name on the tax invoice has to submit tax to the Tax Authority. That means the VAT posting and reporting should be done according to the business place specified on tax invoices.
For example: Company A at Sathorn road operation orders goods/services from a vendor for the New road operation. If tax invoice is issued by the vendor with the name of Company A at Sathorn road, the Sathorn road operation has to submit tax to the tax authority. However if the tax invoice is issued with the name of Company at A-New road, then the New road operation has to submit this tax.
Customizing Tables 1. Define Business Place
To define business places and the business places’ addresses for each company code. Menu Path
IMG →Cross-Application Components →General Application Functions →Cross-Application Document Numbering →Thailand →Define business place
To maintain the address of business place, please click on the address icon. 2. Assign business place to plant
You can define the plant that belongs to business place in Customizing. From this assignment the system will automatically insert the business place as a default during the billing entry.
Plant Name Country Company Code Business Place
B0P1 SAP Thailand TH TH01 0001
Menu Path
Company A
Sathorn Road
IMG →Cross-Application Components →General Application Functions →Cross-Application Document Numbering →Thailand →Assign business place to plant
3. Set User Parameter
To activate the country-specific field, such as ‘branch no’ field, on the data entry screen, you should set parameter ‘CSF’ with value ‘AR’ in the user parameter setting.
Menu Path
From the SAP Easy Access Screen, choose System → User Profile → Own Data
Field name in FI and Logistics
To enter business place in FI and Logistics, you need to fill different fields on the screen as following:
• In MM and SD, business place needs to be filled in the "business place" field.
• In FI, business place needs to be filled in the "branch" field. Branch/Business Place – FI Posting
In FI-AP, FI-AR, FI-G/L business place/branch information can be entered during the posting of invoice, credit memo, incoming/outgoing payment, down payment, reversing and G/L document by the following steps:
• Enter business place at the branch field of document header
• After entering the branch field in the document header, the system automatically copies this value to all line items.
• The business place/branch value is stored in FI document in the following fields: BKPF-BRNCH, BSEG-BUPLA and BSET-BUPLA.
Please note that the system does not allow you to post one invoice with different business places/branches in different line items
Branch/Business Place – Payment Transactions
Same as other FI posting, the payment transactions need to be specified for the business place for that payment transaction.
• For online-payment (outgoing/incoming payment)
In this release you can enter business place directly at "branch no" field of the document header. This is place of business for this transaction.
• For automatic payment (batch processing)
To run the automatic payment program with the ability to assign business place to the payment transactions, the following Customizing settings need to be done:
1. Define the assignment keys for branches via IMG Accounts receivable and Accounts payable Business transactions Outgoing payments Automatic outgoing payments Automatic posting Branch assignment for automatic postings define assignment keys
2. Specify which branch should be used for each assignment key when running the automatic posting via IMG Accounts receivable and Accounts payable Business
transactions Outgoing payments Automatic outgoing payments Automatic posting Branch assignment for automatic postings define branch assignment for automatic
postings
3. The paying company must have country 'TH' – Thailand. The payment document from automatic payment should have branch field in document header, same as in the branch allocation definition.
Branch/Business Place – FI Cash Journal Posting
If you are using cash journal to handle cash transactions, the following Customizing needs to be done in order to support the automatic posting of the VAT and withholding tax to different business places. When setting up the cash journal in the Customizing, you need to put the business place at the additional text field (TCJ_C_JOURNALS-TEXT). Please note that there is no validation check for business place in this field. To set up cash journal go to IMG Financial Accounting Bank Accounting Business Transactions Cash Journal Set Up Cash Journal. As a result from the Customizing, when posting cash transactions in this particular cash journal (Transaction-FBCJ), the system automatically assigns the branch from the setting in the additional text field. This implies as well that one cash journal can only be used for cash transactions of one business place.
See details information of Cash Journal in the standard documentation. Branch/Business Place – MM
In MM you can post your invoice or credit memo from LIV (Logistic Invoice Verification) with business place by assigning business place to the plant.
The limitation of LIV (Logistic Invoice Verification)
• You have to enter business place manually in the document header.
• There is no default value displaying.
• Business place is a required field. Therefore if you leave it blank, you will get an error message to enter business place manually.
Branch/Business Place – SD
For the billing processing, you can enter business place in the document before releasing to FI. This also applies for the credit/debit memo processing and the cancellation of billing.
In SD, when you process a billing, the system will automatically insert the business place as a default from the assignment of business place to plant in IMG. However it is possible to overwrite this value at the billing header if it is required.
To separate business place and tax code in SD-Billing document, you must assign routine no. “360” to your billing type. You are also required to assign the business place to plant, the same way as in MM.
• Assign routine no. “360” in the field data VBRK/VBRP to your billing type via copying control from delivery note to billing or sales order to billing in SD Customizing.
Note:
• In summary, the business place (branch) code can be input during the transaction entry in two ways.
• In Logistic (MM & SD), you need to use field “business place” (BUPLA) in the header item.
• In Financial (FI-GL, AP & AR), you need to enter business place in the “branch” (BRNCH) field at the document header. The system will then automatically updates into the BUPLA line item.
• As it is required by law that the VAT reports have to be submitted at the registered business place level, therefore the branch codes needs to be set up accordingly to the company’s business places.
• Business place set up is required no matter if your company have only one business place or more than one business place. It is mainly used to support the report requirement for the Thailand Tax Authority
• The system is using the ‘BUPLA’ field to report VAT transactions separately by business place.
2.3 Customer/Vendor Master Data
Description
In the customer and vendor master data, the following fields need to be set up during maintaining the master data.
• Tax code 1
In the Country Version Thailand if the customer/vendor is considered by law as a natural personal or an individual business, the personal ID of that vendor/customer should be maintained in the ‘Tax code 1’ field. The personal ID is 13 digits long and is presented on the tax form no. 03 (Phaw.Ngaw.Daw. 03)
• Tax code 2
The Tax ID of customer/vendor should be maintained in the ‘Tax code 2’ field. The tax ID in Thailand is 10 digits long. The first digit of TAX ID shall be set with the following meaning:
• “1” and “2” as a natural person or individual business
• Others as a corporate company
The withholding tax reporting tools is using the first digit of the TAX ID to identify the form number to be used during the withholding tax certificate printing.
3 xHTAXES
3.1 Tax Identification
DescriptionEach individual person or company operating business in Thailand is required to register themselves at the Revenue Department (Thai Tax Authority). Each will be assigned a Tax Identification number, which is always used when contacting or reporting to the Revenue Department.
In the Country Version Thailand, you can maintain your company codes tax ID at the VAT register field in IMG Financial accounting, under Financial Accounting Global Settings Company Code Enter Global parameters
For the business partners, you can maintain your customer’s or vendor’s tax ID at the ‘tax code 2’ field of the master record. If your customer or vendor is an individual person, the personal ID of that person shall be additionally maintained in the ‘tax code 1’ field. See more details in the customer/vendor master data.
3.2 Tax on Sales and Purchases (Value Added Tax)
Description
In Thailand the value added tax (VAT) is levied generally at a flat rate of 7% and is collected on most goods and services. When selling the products/services, the vendor is supposed to issue an official VAT document called tax invoice to the customer. As tax invoice is considered an important tax reference document, therefore the company needs to maintain and manage these documents
properly. Every month-end the company is required to file several VAT reports for each business place to the local Revenue Department where their business places have been registered. Additionally some reports, such as the Raw Material and Inventory report, are required to be submitted annually.
3.2.1 Customizing Value Added Tax
Tax Procedure
To activate the value added tax functionality for the Country Version Thailand, you need to make sure that your company code is defined in the country definition with the ‘vehicle country key’ field set as ‘TH’ and the ‘tax procedure’ field set as “TAXTH”. To maintain country definition choose IMG General Settings Set countries Define countries.
Calculation Procedure
In Country Version Thailand the tax calculation procedure “TAXTH” has already been created as part of the standard delivery. This calculation procedure contains the necessary specifications for
calculating and posting taxes on sales/purchases. The calculation of the tax procedure is based on the tax rate defined in the tax code. You are required to run ‘RFTAXIMP’ to activate pre-customized tax rate. See detail how to run this program in the standard documentation.
The following tax codes are delivered in the system.
TAX TYPE ACCOUNT KEY TAX Code TAX Rate
O7 7% MWS Output O1 10% O0 0% VAT V7 7% VST Input V1 10% V0 0% average 60:40 NV 7% MWS Output DT 10% DEFERRED VAT DS 7% VST Input D1 10% D7 7% NON-TAXABLE MWS Output OX 0% VST Input VX 0%
Not DEDUCTIBLE NVV Input U7 7%
NAV Input U0 7%
However if it is required, you can as well define a new tax code with the additional tax details for each tax procedure in FI configuration. The system will automatically calculate each tax amount and post it into the pre-defined G/L accounts. To maintain the tax code, choose IMG Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases Calculation Define Tax Codes for Sales and Purchases.
Note:
• The posting rule should be customized by tax codes. This will allow you to define different tax account for different tax code.
• To change the tax rate, you must define a new tax code.
See standard SAP R/3 documentation for more details on Tax on Sales/Purchases.
Additional Procedure
For the Country Version Thailand the function module “J_1H_TH_PROCESS_00001130” is assigned in Open-FI process 00001130 for the country “TH”. This function module is using FI substitution features to store the tax invoice number and the running number in field “document header text” (BKPF-BKTXT). During the transaction processing, this function module will call the function
“J_1H_OFF_NUMBERING” that contains official numbering routine (tax invoice number and running number) for Thailand, and also call the function “TURKEY_BOE_BORDRO_00001130” to update the number range for the bill of exchange (or PDC) transaction.
Menu Path
Transaction FIBF Settings Process Function Modules …of an SAP appl.
The following Customizing settings are required additionally depending on the
company specific requirement.
• Define Numbering groups
To control the Tax Invoice numbering at the level of business place, you need to define number groups in the table “J_1HVAT_OFF_NUMA” and “J_1HVAT_OFF_NUMV”. This could be done in IMG Cross-Application Components General Application Functions Cross-Application Document Numbering Maintain numbering groups
• Define Number ranges
You need to define number ranges for each number group for each month. Number ranges can be maintained in IMG Application Components General Application Functions Cross-Application Document Numbering Maintain number ranges
• Assign numbering group for tax invoice received running number
You need to assign numbering group to the combination of company code, business place, tax year and tax code for the numbering control of tax invoices received from vendor. Go to IMG Cross-Application Components General Application Functions Cross-Application Document Numbering Thailand Assign numbering group for tax invoice received running no.
• Assign numbering group for tax invoice number issue
You need to assign numbering group to the combination of company code, business place, tax and document type to control the numbering of the tax invoice issued to customer. Go to IMG Cross-Application Components General Application Functions Cross-Application Document Numbering Thailand Assign numbering group for tax invoice number issue.
• Check Assignment of Document Class to Document Type
You need to make sure that you mark on the official numbering field for all document types required automatically numbering assignment. To maintain this go to IMGFinancial Accounting Global Setting Document Document Header Check Assignment of Document Class to Document Type
Type Description Off.Num. Self-iss. Check date Doc.class
KA Vendor Document
Note:
For the Country Version Thailand, you need to select only field “Off.Num” field.
• Customizing in Sales and Distribution (SD)
• Define tax classification in SD
• Define the document flow in SD
• Assign data transport routine ‘360’ for Delivery to Billing and Order to Billing
• Assign FI document type into Billing Type
• Setting the reason code or valuation type and its corresponding G/L account for handling tax differences
• Define reason code for handling tax differences
To define reason code for handling tax differences, you need to define via IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Outgoing Payments Manual Outgoing Payments Overpayment/Underpayment Define Reason Codes (Manual Outgoing Payments)
Classification of Payment Differences
Rcd Short Text Long Text Corr.Type C D
J1H (TAX) VAT difference (TH) VAT difference amount posting (TH)
• Define Accounts for tax differences
After defining the reason code for tax differences, you need to set the account determination for that reason codes via Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Outgoing Payments Manual Outgoing Payments Overpayment/Underpayment Define Accounts for Payment Differences (Manual Outgoing Payment)
Account Assignment
Account Assignment
Reason Code Account
J1H (TAX) xxxxxx
3.2.1 VAT on Goods
DescriptionAccording to the Thai law, the liability to value added tax on sale of goods shall be governed by the following rules: in all cases of sale of goods. The full liability shall arise upon the delivery of the goods, except where any of the following acts occurs before such delivery, the liability shall be deemed to arise upon the occurrence of such act:
(a) Transfer of the ownership in the goods (b) Receiving payment of the price of the goods (c) Issuance of a tax invoice
3.2.1.1 VAT on Purchased Goods Description
The VAT on purchased goods (input tax) can be posted in: 1. FI-AP
2. FI-GL
3. Cash Journal 4. MM-LIV 5. Down Payment
Detailed tax information has to be entered with the following procedure:
-• The number of tax Invoice received from the vendor shall be entered into the “reference document” field. In this field the system is also checking if the tax invoice number has been entered before.
• The tax date should be entered into the “document date” field.
• Branch / Business place
• When posting down payments in FI-AP and FI-GL, the business place can be entered at the ‘branch no’ field in the document header. The system will then automatically update the business place into each line item (BSEG-BUPLA).
• To post cash transactions in the cash journal, you need to pre-configure the business place in the ‘additional text’ field (TCJ_C_JOURNALS-TEXT) of your cash journal definition. When entering the cash transactions (with transaction FBCJ), the system will automatically insert the pre-configured business place into each line item (BSEG-BUPLA).
• In the MM-LIV, even though you have already assigned plant to branch in the Customizing, the system will not automatically insert the business place into the invoice header. You have to manually enter the business place at the document header. However, the system will automatically update the business place into each line item (BSEG-BUPLA).
• To post tax transaction in FI-GL, you can enter the vendor’s name at ‘long text’ field of the tax line item.
• For the expense transactions entered via the Cash Journal, you can enter your vendor’s name at text line item. (See details in cash journal).
Note
• For the Country Version Thailand in the add-on version, you need to
customize the extra text for entering vendor’s name in FI-GL. However in the release 4.6C, you can enter your vendor’s name in the ‘long text’ field of the tax line item, so there is no Customizing for extra text required.
3.2.1.2 VAT on sold goods Description
The VAT on sold goods (output tax) can posted in: 1. FI-AR
2. FI-GL 3. Cash Journal
4. SD
5. Down payment
Detailed tax information has to be entered with the following procedure:
-• Tax invoice information
1. In FI, the system will automatically generate the tax invoice number and store at the ‘reference document’ field (BKPF-XBLNR). If the company is issuing tax invoices manually or from the external system, you should enter the tax invoices in a separated document type, which is not defined automatically numbering assignment. In this case, you should enter the tax invoice number in the same field.
2. In the SD, the tax invoice number is stored in the ‘VBRK-XBLNR’ field
(Billing->Header->Reference) of the billing document. When releasing this billing document to FI, the system will automatically update the tax invoice number into the ‘BKPF-XBLNR’ field and the billing document number into the “document header text” (BKPF-BKTXT) field.
• The tax date should be entered in the “document date” field.
• Branch / Business place, there are the following cases
• When posting down payments in FI-AP and FI-GL, the business place can be entered at the ‘branch no’ field in the document header. The system will then automatically update the business place into each line item (BSEG-BUPLA).
• To post cash transactions in the cash journal, you need to pre-configure the business place in the ‘additional text’ field (TCJ_C_JOURNALS-TEXT) of your cash journal definition. When entering the cash transactions (with transaction FBCJ), the system will automatically insert the pre-configured business place into each line item (BSEG-BUPLA).
• In contrast to the invoice entered via the MM-LIV, the system will automatically insert the business place at the document header from the assignment of plant to branch in the IMG. The branch field can be overwritten if necessary. After posting this invoice, the system will then automatically update the business place into each line item (BSEG-BUPLA).
Note
• For the Country Version Thailand in the add-on version, you need to customize the extra text for entering vendor’s name in FI-GL. However in the release 4.6C, you can enter your vendor’s name in the ‘long text’ field of the tax line item, so there is no customizing for extra text required.
3.2.2 VAT on Services (Deferred VAT)
DescriptionIn Thailand, the VAT on goods and services are treated in different ways. When selling goods, the company needs to issue the tax invoice when the goods are delivered. For this case the company can post the VAT transaction directly to the tax account. However when selling services, the company only issues the tax invoice when the invoice is paid. Upon the invoice posting, the company needs to post the VAT transaction to the “Deferred VAT” account. As soon as the invoice is paid, the company then transfers the Deferred VAT to the VAT account.
The characteristic of the deferred VAT code and account
• Deferred VAT code must be specified a target tax code to be transferred to.
• Deferred VAT account should have the following specification:
• Select “open item management” and
• Select “line item display”. See SAP R/3 Documentation Tax Code
To transfer the deferred VAT to the VAT account, you need to run the "J_1HDTAX" program. This program is creating a list of the customer or vendor invoices that have been posted with the deferred VAT account. Then you select the invoices that you want to transfer. At this point you can as well enter the additional required information such as the tax invoice number and the tax invoice date. In case of the tax amount shown on the tax invoice is different from the posted invoice, the difference amount is posted automatically to the pre-defined suspense account in the Customizing.
To transfer the deferred VAT for the partial payments, the program creates a corresponding clearing item with the open item status. When the final payment posted, it will then be cleared out
In release 4.6C, it is possible to transfer deferred VAT to VAT when invoice is not yet paid (transfer deferred VAT in full amount), or only partially paid.
This "J_1HDTAX" program processes as follows:
-• Select transactions from the selected Customer or Vendor to be transferred
• Transfer deferred VAT from one invoice to one tax invoice (1:1) or
• Transfer deferred VAT by grouping many invoices to one tax invoice (M:1)
• Transfer "Tax Invoice Number" into field “reference” (BKPF-XBLNR) for input tax
• Transfer “Tax Invoice date” into “ field document date” (BKPF-BLDAT)
• Generate new running number in the following fields: - Document header text (BKPF-BKTXT) for Input tax Reference document (BKPF-XBLNR) for Output Tax
• Recognize the Tax Amount and Tax Base Amount
• Post the different amount into suspense account. In case of change in the VAT amount, the program will automatically post the difference into the suspense accounts as specified in the payment differences by reason (transaction process ‘ZDI’).
• Can transfer to VAT before payment posting in case of full payment
• Partial payment is required before partial transfer of Deferred VAT
It is required to post the partial payment before you can transfer that partial deferred VAT. For example service invoice has the amount of 1,100 Baht, which is including 100 Baht VAT. If you want to transfer deferred VAT to VAT account with the amount of only 35 Baht, you must make partial payment of 535 Baht, which is including the base amount of 500 Baht and the VAT of 35 Baht before you can execute the program “J_1HDTAX”. After executing the program
“J_1HDTAX”, the first screen displays invoice line item with full amount and payment line item with partially amount. When you select the invoice to be transferred, the second screen displays default tax base and tax amount from partial payment. You can change this amount according to tax invoice received. The system is then automatically post the difference amount to the
suspense account that has been pre-defined in the Customizing. Limitations:
• Do not forget to transfer deferred VAT for each partial payment. Because the system does not allow you to transfer the next payment until the former partial payment has been transferred.
Only Accounts Receivable
• In case of several invoices paid by one payment, it is not possible to transfer deferred VAT of some invoices before others. If you try to do so, you will get an error message from the system.
• Transfer deferred VAT from Holdback/Retainage (Installment) Term of Payment
In this release you can transfer deferred VAT from invoice that has many vendor line items. This case occurs from holdback/retainage (installment) term of payment or deferred VAT from leased asset. If the payment is paid for only one particular vendor line item, you are then allowed to transfer the deferred VAT for that item without waiting for the whole invoice to be paid. The system
transfers the right deferred amount by calculating from the liability amount. See the example case below: -
Itm PK Account Account short text Assignment Tx Amount 1 40 400000 Raw materials consume 0000001000 D1 40,000.00 2 31 TH-V01 Dusit Limited testing 19000001802000 D1 3 31 TH-V01 Dusit Limited testing 19000001802000 D1 4 31 TH-V01 Dusit Limited testing 19000001802000 D1 5 40 154009 Input tax 1 D1 4,000.00 If you pay for the amount 13,200 Baht for the vendor line item 2, you can transfer the deferred of this liability (13,200*10/110).
Limitations:
The whole amount of the tax is transferred, if you transfer by “J_1HDTAX” program before any line item of this invoice is paid.
Menu Path
Accounting → Financial Accounting → General Ledger→ Reporting→ Tax Reports → Thailand →
Transfer deferred tax for Thailand Customizing Tables
• Define Reason Codes (Manual Outgoing Payments)
• Define Accounts for Payment Differences (Manual Outgoing Payment) See detail in the section of Customizing VAT.
Selection Screen
Company Code to Document Number to Fiscal Year to
General SelectionsGeneral Selections Technical SettingsTechnical Settings
Posting date to
Reference number to Read items sequentially Vendor/Customer selection
Tax Invoice Receive from Vendor to Tax Invoice Issued to
Customer to
Further selection Posting Parameters
Business place to Carry out Batch Input Deferred tax G/L account to Display batch input session Deferred tax code to Document Type SASA
Special G/L indicator to Text Transfer Postings for Deferred TaxesTransfer Postings for Deferred Taxes
Valuation grpg. code Output
FI Document posting by FB01 or FB05.
3.2.3 Value Added Tax Reporting
The following VAT reports should be run monthly or yearly and submitted to the Thai revenue department:
• Input Tax Report
• Output Tax Report
These 2 reports can be run by the ‘Advance Return for Tax on Sales/Purchases’ - ‘RFUMSV00’ program.
Menu Path:
To run the VAT report, from the SAP Easy Access Screen choose: Accounting → Financial Accounting
→ General Ledger → Reporting →Tax Reports →Thailand → Advance Return for Tax on Sales/Purchases
3.2.3.1 Value Added Tax—Input Tax Report (RFUMSV00)
In Thailand, on every 15th of the next month, the company has to submit the VAT report of the current calendar month to the revenue department. The input tax report shows the VAT transactions from purchasing goods or services. The following information is required on the Input Tax Report:
• Tax date (Date on Tax Invoice received from Vendor)
• Number of tax invoice received from vendor
• Vendor name
• Tax base amount (value of goods and/or services)
• Tax amount
The Input Tax Reports are required to be submitted to each local revenue department where the business locations have been registered.
Menu Path
Accounting →Financial Accounting →General Ledger →Reporting →Tax report →Thailand → Advance Return for Tax on Sales/Purchases
Selection Screen
• set Parameter as the follows:
-Company Code to Document Number to Fiscal Year to General SelectionsGeneral Selections
Posting date 01.01.2000 to Reference number to
31.01.2000 (select tax data in each tax month) Further selections
Tax on sales/purchases code ≠ VX to
(*must Exclude non-taxable tax code) Business place xxxx
Select Input Tax
Output Control
Read address data Output List
Output lists Display Variant
Input tax: Line items xxxxxxxx ConfigureConfigure
Input tax: Total xxxxxxxx ConfigureConfigure
Posting Parameters
Do not update documents
Configure variant as the same of legal input tax report by
• Assign field: Document date, Document header text, Vendor name 1-4, Tax percentage, Tax base amount, user defined field 2 (Claimed tax amount), tax amount, etc.
• Define sorting, grouping and filter as needed. For example, ascending sorting for document header text, grouping for tax percentage or tax codes and filters for deductible input tax only.
Note
• This program prints all tax codes in the BSET table. You need to exclude the non-taxable code by yourself.
• For SAP document, each invoice should contain only 1 vendor because the VAT in report displays 1 transaction for in 1 invoice.
• If tax invoice date over 6 months, report will be generated separately by tax month of document date in order to be submitted additionally. If under or within 6 month, the report will be generated transactions include in that tax month accordingly tax law. In this release, the VAT report displays all VAT transactions including manual entry transaction from G/L account.
• When you post the Tax transaction from General Ledger Accounting Posting, there is no vendor’s information available. Therefore, you are required to enter vendor's name at long text of tax line items (G/L only)
• The VAT report shows transactions for invoice and the down payment clearing of that invoice in two lines. It does not combine into one line as one tax invoice.
• Vat in report can not total the column “tax claim” in case of having tax average of tax claim and unclaimed because the attribute of field “user defined field x” is defined as character.
• You can run the VAT report only one business place/branch at a time. 3.2.3.2 Value Added Tax—Output Tax Report (RFUMSV00)
Output tax report will display the VAT transactions that company issue the tax invoices to the VAT registered customers when selling goods or services. Output tax will occur at the time the goods is sold or services is paid. In Thailand, every 15th of next month, the company has to submit the VAT report for the current calendar month.
Output tax will be reported at the branch level for each month according to Thai legal requirement. Menu Path
From the SAP Easy Access Screen choose: Accounting → Financial Accounting → General Ledger→
Reporting → Tax report → Thailand → Advance Return for Tax on Sales/Purchases Selection Screen
• set Parameter as the follows:
-Company Code to Document Number to Fiscal Year to General SelectionsGeneral Selections
Posting date 01.01.2000 to
Reference number to 31.01.2000 (select tax data in each tax month) Further selections
Tax on sales/purchases code ≠ OX to
(*must Exclude non-taxable tax code) Business place xxxx
Select output tax Output Control
Read address data Output List
Output lists Display Variant
Output tax: Line items xxxxxxxx ConfigureConfigure
Output tax: Total xxxxxxxx ConfigureConfigure
Posting Parameters
Do not update documents
Configure variant as the same of legal output tax report by
• Assign field: Document date, Reference, Customers name 1-4,Tax base amount, Tax amount, etc.
• Define sorting, grouping and filter as needed. For example, ascending sorting for document date and reference, grouping for document type.
Note
• This program will print all tax code that generated into BSET. Users have to set non-taxable code exclude in parameter by own self.
• For SAP document, each invoice should contain only 1 customer because the report will display 1 transaction in 1 invoice.
• The VAT report is also presenting the VAT transaction from the G/L posting.
• To post the VAT transaction via the G/L, you need to use the ‘long text’ field of the customer line item to store your customer’s name.
• The VAT report displays the transaction of invoice and down payment clearing in two separated line items. It does not combine into one line tax invoice.
• You can run VAT report only one business place/branch at a time. 3.2.3.3 Value Added Tax—Post to Tax Payable account (RFUMSV00)
You can post tax transactions to a taxable account by generating the batch input session. See SAP R/3 implementation document. After that you need to post this taxable account to the “Revenue Department” vendor to process a payment.
Menu Path
From the SAP Easy Access Screen choose: Accounting Financial Accounting General Ledger Reporting Tax report Thailand Advance Return for Tax on Sales/Purchases
Selection Screen
• Set Parameter as the follows:
-Company Code to Document Number to Fiscal Year to General SelectionsGeneral Selections
Posting date 01.01.2000 to
Reference number to 31.01.2000 (select tax data in each tax month) Further selections
Tax on sales/purchases code ≠ OX to
(*must Exclude non-taxable tax code) Business place xxxx
Select output tax Select input tax Tax Payable Posting
Batch input session required Posting document Type Posting date
Posting period
Alternative tax payable acct Due date of the tax payable
Session name RFUMSV00 Process session immediately Run deadline
Time for processing 00:00:00 Output Control
Read address data Output List
Output lists Display Variant
Output tax: Line items xxxxxxxx ConfigureConfigure
Output tax: Total xxxxxxxx ConfigureConfigure
Input tax: Line items xxxxxxxx ConfigureConfigure
Input tax: Total xxxxxxxx ConfigureConfigure
Posting Parameters
Update documents: Update run Note:
• The output lists can be suppressed if you do not intend to re-print the detail tax report.
• This program can be run for only one business place/branch at a time.
• You should select ‘update document’ if you want to post to the tax payable account.
3.3 Withholding Tax
3.3.1 General Information
The handling of tax deduction is applied to all registered companies in Thailand including the foreign person or company who generate the assessable income in Thailand. The payer shall deduct tax from the assessable income according to the Thai revenue code and issue a certification of tax deduction. At the end of month or within 7 days of the following month, the company is required to submit withholding tax reports to the revenue department.
The SAP R/3 System provides two procedures for processing withholding tax: Withholding tax and extended withholding tax. However the Country Version Thailand in release 4.6C is using only the Extended withholding tax to handle the Thai withholding tax requirements.
3.3.2 Customizing Withholding Tax
DescriptionThe following Customizing settings are required to handle the Thai withholding tax requirements. Please, as well, refer to the standard documentation on the Extended Withholding functionality. Customizing Tables
1. Activate Extended Withholding Tax
The Country Version Thailand is using the Extended Withholding tax procedure to handle both withholding in Account Receivable and Accounts Payable. Therefore you need to activate the extended withholding tax of your company code.
Screen to activate extended withholding tax
Company Code Company Name Extended W/Tax
TH01 Country Template Thailand
Menu Path
IMG Financial Accounting Global Settings Company Code Activate Extended withholding tax
2. Check Recipient Types
The Country Version Thailand uses the recipient type to identify which withholding tax form number the system should use to print a certificate. Therefore in the Customizing SAP has predefined the recipient type according to the Thai withholding tax form number and assigned it to the predefined withholding tax type as following.
Screen to maintain recipient types
Vendor types of recipient for withholding tax types
WTX Type Recipient Type Text
01 02 Phaw.Ngaw.Daw. 02 01 03 Phaw.Ngaw.Daw. 03 01 53 Phaw.Ngaw.Daw. 53 01 54 Phaw.Ngaw.Daw. 54 11 02 Phaw.Ngaw.Daw. 02 11 03 Phaw.Ngaw.Daw. 03 11 53 Phaw.Ngaw.Daw. 53 11 54 Phaw.Ngaw.Daw. 54
These recipient types also should be filled when you maintain the vendor withholding tax master data.
Menu Path
IMG Financial Accounting Global Settings Withholding TaxExtended withholding Tax Basic Settings Check Recipient Types
3. Define income types
The following income types have been predefined in the system according to the income type on the tax certificate.
Income Types Text 1000 Others
1100 40(1) Salary, Wage, Per diem, Bonus 1200 40(2) Fee, Brokerage, Discount 1300 40(3) Goodwill, Copyright
14A 40(4)(A) Interest on bonds, Deposits 14B 40(4)(B) Dividend
14B1 40(4)(B)(a) Div.fr.Corp.Income tax 30% 14B2 40(4)(B)(b) Div.fr.Invest.Zone35(2)=1/2 14B3 40(4)(B)(c) Div.fr.Corp.Income tax 10% 14B4 40(4)(B)(d) Icom.except (a)(b) or (c) 1500 40(5) Property on Hire, Hire-purchase 1600 40(6) Liberal Professions:Laws,Arts,etc 1700 40(7) Contract of work
1800 40(8) Business Commer.Agri.,Indus,Trans 3000 Others - 3Tre 3500 40(5) Property on Hire, Hire-pur - 3Tre 3600 40(6) Liberal Professions:Laws,Art - 3Tre 3700 40(7) Contract of work - 3Tre 3800 40(8) Business Commer.Agri.,Indus- 3Tre 5402 According to section 70 bis.
Menu Path
Financial Accounting Global Settings → Withholding Tax → Extended withholding Tax → Basic Settings → Check Income Types
4. Withholding Tax Types
The withholding tax type is used to control the essential calculation procedure for the extended withholding tax. It as well controls when the withholding tax amount should be posted: at the invoice posting or at the payment posting.
• Define Withholding Tax Type for Invoice Posting Calculation
Base amount Rounding Rule
Net amount W/tax comm. Round Base amount reduction
Post W/tax amount
Accumulation Type Control data
No accumulation W/tax base manual Manual w/tax amount Acc. w/tax to max. No cert. Numbering
Informatn.for regional wth. Define minimum/maximum amounts
Region Base amount Withholding Tax amount W/tax code level W/tax code level Menu Path
Financial Accounting Global Settings → Withholding Tax → Extended withholding Tax→
Calculation → Wtihholding tax type → Define withholding tax type for invoice posting
• Define Withholding Tax Type for Payment Posting Calculation
Calculation
Base amount
Base amount Rounding rulesRounding rules Cash DiscountCash Discount Net amount W/tax comm. Round C/disc per W/tx Post w/tax amount Control Data
Accumulation Type
Accumulation Type W/tax base manual W/tax for payments No accumulation Manual w/tax amount No cert.numbering Combine accum. Self-w/holding W/tax alrdy w/hd Acc. w/tax to max. Information for regional withholding tax
Region Define minimum/maximum amounts
Define minimum/maximum amounts
Base amount
Base amount Withholding tax amountWithholding tax amount W/tax code level W/tax code level
Central invoice
Central invoice Withholding tax amountWithholding tax amount
No centr. invoice Min. base amnt check at doc. invoice level Menu Path
Financial Accounting Global Settings → Withholding Tax → Extended withholding Tax →
Calculation → Wtihholding tax type → Define withholding tax type for payment posting
• Assign Condition Type to Withholding Tax Type
This step is to set the withholding tax type for the account receivable with the condition type set from the SD. It is only for the withholding tax at the payment posting.
The transaction posted from the SD is using the condition technique to get the withholding tax information. Please refer to the standard documentation about pricing in the SD.
Withholding tax type Description Condition
R1 A/R-No centr.inv.& Chck min.base amt XXXX Menu Path
IMG → Financial Accounting Global Settings → Withholding Tax → Extended withholding Tax
5. Withholding Tax Codes
The withholding tax code determines the withholding tax percentage and income type. To maintain withholding tax code, you need to maintain the following information:
• Tax codes
• Income types
• Tax percentage
• Posting indicator
Setting- Deduct At payment General Data
General Data
Withholding Tax Type 11 W/tax code xx 10% Deduct at pay Off. w/tax key Base Amount
Base Amount PostingPosting
Percentage subject to tax 100% Post. Indic. 1 Calculation
Calculation Reporting InformationReporting Information
With/tax rate 10% Income type xxxx Setting- Gross up
General Data
General Data
Withholding Tax Type 11 W/tax code xx 10% Gross-up Off. w/tax key Base Amount
Base Amount PostingPosting
Percentage subject to tax 100% Post. Indic. 2 Calculation
Calculation Reporting InformationReporting Information
With/tax rate 10% Income type xxxx
Setting- One Cycle Gross up-- must define 2 withholding tax types General Data
General Data
Withholding Tax Type 11 W/tax code xx 10% OneGross-up Off. w/tax key Base Amount
Base Amount PostingPosting
Percentage subject to tax 100% Post. Indic. 3 Calculation
Calculation Reporting InformationReporting Information
With/tax rate 10% Income type xxxx General Data
General Data
Withholding Tax Type 12 W/tax code xx 10% OneGross-up Off. w/tax key Base Amount
Base Amount PostingPosting
Percentage subject to tax 10% Post. Indic. 1 Calculation
Calculation Reporting InformationReporting Information
With/tax rate 10% Income type xxxx
Menu Path
Financial Accounting Global Settings → Withholding Tax → Extended withholding Tax →
Calculation → Withholding tax Codes → Define withholding tax code 6. Maintain minimum and maximum amount
In this transaction, you need to maintain the minimum base amounts for the withholding tax code e.g. 500 Bath per contract.
Minimum/maximum amount per withholding tax code W/tax type W/tax Code Valid from Currency
01 01 dd.mm.yy THB
Country TH W/tax type 01 W/tax Code 01 Currency THB Valid from dd.mm.yy Minimum w/tax amount Minimum base amount 500.00 Maximum w/tax amount W/tax base exem. amount
Menu Path
Financial Accounting Global Settings Withholding Tax Extended withholding Tax
Calculation Minimum and Maximum Amount Maintain min/max amounts for withholding tax codes
7. Assign withholding tax type to company code To assign the withholding tax type to the company code
Company Code Withholding tax type Recipient type Vendor data Validity Period
Withholding tax agent W/tax obligated from dd.mm.yy Oblig.to w/tax until dd.mm.yy W/tax number
Customer data Validity Period
Subject to w/tx W/tax obligated from dd.mm.yy Oblig.to w/tax until dd.mm.yy Self-withhldg
Menu Path
IMG Financial Accounting Global Settings Withholding Tax Extended withholding TaxCompany Code Assign withholding tax type to company code
8. Define Accounts for withholding tax
To define account code used for the automatic withholding tax posting.
• Define Accounts for Withholding Tax to be Paid Over (transaction: WIT)
• Define Accts for W/hold. Tax for "Gross.Up" Offsetting Entry (transaction: GRU)
• Define Accounts for Self-Withholding Tax (transaction: OPO)
• Define Accounts for Withholding Tax Offsetting Entry (transaction: OFF) Menu Path
IMG Financial Accounting Global Settings Withholding Tax Extended withholding Tax Posting Accounts for Withholding Tax
9. Sequential Numbering for Withholding tax
To set withholding tax sequential numbering used on the withholding tax form. Menu Path
IMG Financial Accounting Global Settings Withholding Tax Extended withholding Tax Posting Certificate Numbering for Withholding Tax
• Define Numbering Groups
Number Group Texts
TH0102 Withholding Tax Form No. 2
TH0103 Withholding Tax Form No. 3
Menu Path
IMG Financial Accounting Global Settings Withholding Tax Extended withholding Tax Posting Certificate Numbering for Withholding Tax Define Numbering Groups
• Define Number Ranges
This number range applies for month Numbering Group TH0102
No From number To number Current number Ext
01 0100000001 0199999999
02 0200000001 0299999999
Menu Path
IMG → Financial Accounting Global Settings → Withholding Tax → Extended withholding Tax
→ Posting → Certificate Numbering for Withholding Tax → Define Number Ranges
• Assign Numbering Concept to Company Code Country.
Note: For the Country Version Thailand, the system uses only numbering concept option 4: “K004”.
Country Name Concept
TH Thailand K004
Menu Path
IMG → Financial Accounting Global Settings → Withholding Tax → Extended withholding Tax
→ Posting → Certificate Numbering for Withholding Tax → Assign Numbering Concept to Company Code Country
• Numbering Concept Option 4: Assign Numbering Group
To set number group for each business place and each recipient type. You have to set the numbering according to your company code, branch, recipient type and number group.
Company Code Business Place Recipient Type Number Group
TH01 0001 02 TH0102
TH01 0001 03 TH0103
TH01 0001 53 TH0153
TH01 0001 54 TH0154
Menu Path
Financial Accounting Global Settings→Withholding Tax→Extended withholding Tax→
Posting→Certificate Numbering for Withholding Tax→Numbering Concept Option 4: Assign Numbering Group
3.3.3 Withholding Tax Calculation and Posting
3.3.3.1 Discount Amount in Partial PaymentDescription
According to the Thai law withholding tax should be calculated from base amount after the deduction of VAT and trader discount. In case of the partial payment with “DISCOUNT”, the withholding tax must be proportional deducted for discount before calculating for the withholding tax.
With the standard outgoing payment function, the system does not recognize the partial discount from the partial payment. Therefore in the Country Version Thailand, you need to use the function of Payment request (transaction: F-59) to have a partial discount calculated and posted by the system. Then you can make a normal payment for that payment request.
Note
The standard payment program generates a discount items only at the clearing procedure. Transaction Entry
1. Create Payment request (F-59) for each partial payment. 2. Make a payment (outgoing/automatic) for the payment request. Menu Path
From the Easy Access Screen Choose: Accounting→Financial Accounting→Accounts Payable→Document Entry→Payment Request
Customizing Tables
• Define Alternative Reconciliation Account for Vendors
Standard R/3 provides special G/L indicator “P” for payment request Menu Path
IMG→Financial Accounting→Accounts Receivable and Accounts Payable→Business
Transactions→Postings with Alternative Reconciliation Account→ Define Alternative Reconciliation Account for Vendors
Transaction: OBXT Note
The payment request is only used when there is a cash discount for the partial payment
3.3.3.2 Post Withholding Tax Amount with Exchange Rate of Bank of Thailand Description
According to the Departmental Instruction no. 71/254 that prescribed about exchange rate for business must use the rate of previous day that prescribe by Bank of Thailand for withholding tax.
Example: Bank and Withholding Tax Accounts
For the payment transactions, the system recognizes 2 exchange rates: one rate for bank accounts and the other rate for withholding tax account
For example:
Vendor-A 1,000 USD, exchange rate = 30 Pay at fixed rate 35.00/usd withholding tax 10% Vendor-B 2,000 USD, exchange rate = 30 Pay at fixed rate 38.00/usd withholding tax 10% At payment exchange rate at previous day = 40.00/usd
Foreign Curr. Local Curr.
Debit Accounts Payable-A 1,000.00$usd 30,000.00 Baht (1,000 x 30.00) Debit Gain/Loss on Exchange rate 5,500.00 Baht
Credit Bank Account 900.00$usd 31,500.00 Baht (1,000 – (1,000x10%)) x 35 Credit Withholding Tax 100.00$usd 4,000.00 Baht (1,000 x 40 x10%)
Foreign Curr. Local Curr.
Debit Accounts Payable-B 2,000.00$usd 60,000.00 Baht (2,000 x 30) Debit Gain/Loss on Exchange rate 16,400.00 Baht
Credit Bank Account 1,800.00$usd 68,400.00 Baht (2,000 – (2,000 x 10%)) x 38 Credit Withholding Tax 200.00$usd 8,000.00 Baht (2,000 x 40 x 10%)
This release 4.6C the system allows you to define a new exchange rate type for each withholding tax type. You should maintain the rates of this exchange rate type everyday. If you do not define a new exchange rate type, the system will automatically picks up the rate from the standard exchange rate. Customizing Tables
• Check exchange rate types
To create a new exchange rate type for withholding tax calculation.
ExRt Usage Ref.crcy Buy.rt.at Sell.rt.at Inv EMU Fixed
xxxx Bank of Thailand Rate
Menu Path
IMG →General Settings →Currencies →Check exchange rate types
• Define translation ratios for currency translation
To maintain ratio in each currency of new exchange rate type that you created. ExRt From To Valid From Ratio (from) Ratio (to) Alt.ERT xxxx USD THB 01.01.2000 1 1
Menu Path
IMG →General Settings →Currencies →Define translation ratios for currency translation
• Enter exchange rates (OB08)
To maintain the exchange rate of new exchange rate type that you created in each day. ExRt Valid From Indir.Quot Ratio(from) From Dir. Quot. Ration (to) To
Xxxx 04.01.2000 X 1 USD = 46.55559 X 1 THB
Xxxx 03.01.2000 X 1 USD = 46.89999 X 1 THB
Xxxx 01.01.2000 X 1 USD = 47.56789 X 1 THB Menu Path
IMG General Settings Currencies Enter exchange rates NOTE:
Please maintain the date of the exchange rate by using the Announcement Date of the Bank of Thailand. Do not use the date of the Reference Exchange Rate.
For example, if you want to post the transaction on January 15, 2000, you should enter the exchange rate date with ‘January 15, 2000’ and the rate that the Bank of Thailand announces on January 15, 2000, even though this rate is the average rate from January 14, 2000.
• Assign withhold tax exchange rate for each withholding tax type
This step defines exchange rate type for withholding tax type. To use in withholding tax calculation.
Alternative Exch. Rate Type for Withholding Tax Calculation
Wth.Tax Type Name Exc. Rate
01 Invoice Posting Xxxx
02 Invoice Posting (one cycle grossing up) Xxxx
11 Payment Posting Xxxx
12 Payment Posting (one cycle grossing up) Xxxx R1 A/R-No centr.inv.& Chck min.base amt
Menu Path
IMG Financial Accounting Financial Accounting Global Settings Withholding Tax Extended Withholding Tax Calculation Withholding Tax Type Define Exchange rate type for Withholding Tax Type
• The following information should be maintained in the vendor master:
• Assign one or more withholding tax type
• Assign form number (i.e. 2, 3, 53 or 54) into the recipient type. The recipient type represents the tax form (Phaw. Ngaw. Daw. Form).
• The ‘Liable’ flag should be marked. Vendor xxxxxx
Withholding Tax Information Withholding Tax Information
W/tx Type W/tx code Liable Recipient Type
01 54
02 54
Limitation: Each vendor code should have only one recipient type. There is not validation check provided by the system.
Menu Path
From Easy Access Screen choose: Accounting Financial Accounting Accounts Payable Master Records
3.3.3.3 Check Minimum of Withholding Tax Amount in Posting Description
In Thailand, if the assessable income in one contract is less than 500 Baht, the deduction of the withholding tax is not required. The minimum check can be performed at both invoice and payment posting depending on where the withholding tax is posted.
Case I. Checking minimum of withholding tax amount for invoice posting
• If you set the minimum amount check at the invoice posting, the system will check the amount of each invoice amount whether the amount is over and equal 500 Baht.
Case II. Checking minimum of withholding tax amount for payment posting
• If you set the minimum amount check at the payment posting, the system will check the total amount of selected invoices to be paid. If the total invoice amount is equal or more than 500 Baht, even though the total paid amount is not more than 500 Baht, the system will calculate/post the withholding tax from the paid amount of each invoice.
Example 1:Total invoice amount is more than 500 Baht, but the total paid amount is less than 500 Baht
Invoice Invoice amount Paid amount Withholding Tax 10%
No. 0001 100.00 100.00 10.00
No. 0002 100.00 100.00 10.00
No. 0003 600.00 200.00 20.00 (10% of 200)
Example 2: Total invoice amount is 500 Baht and the total paid amount is 500 Baht Invoice Invoice amount Paid amount Withholding Tax 10%
No. 0001 100.00 100.00 10.00
No. 0002 100.00 100.00 10.00
No. 0003 200.00 200.00 20.00
No. 0004 100.00 100.00 10.00
In case of the foreign currency transaction, the system calculates the withholding tax from the translated base amount translated in the local currency, not directly from the foreign currency amount.
Customizing Tables
• Define Withholding Tax Type for Payment Posting
To define minimum/maximum amounts in each withholding tax type by selecting “Min.base amt check at doc.invoice level”
Menu Path
Financial Accounting Global Settings Withholding Tax Extended withholding Tax Calculation Withholding tax type Define withholding tax type for payment posting See maintain withholding tax type for payment posting in the Customizing withholding tax
• To define minimum base amount per withholding tax code. Menu Path
IMGFinancial Accounting Financial Accounting Global Settings Withholding
TaxExtended Withholding TaxCalculation Minimum and Maximum Amounts Define Min/Max Amounts for Withholding Tax Codes
