General Ledger Reconciliation Report for Tax shows Absolute Difference between the Tax Register and Tax Ledger under Withholding Tax Balances.
Error message will be shown as:
Balances differ for country XYZ (XYZ here represents Country), Tax Type, Tax Event and Tax Rate.
SAP Business ByDesign
Reproducing the Issue
Go to the General Ledger Work center.
- Go to the Periodic Tasks view.
- Go to the Reconciliation subview.
- Show All Reconciliation runs and Find Run ID AAA (AAA here represents Reconciliation Run ID).
- Go to LogResult of the Reconciliation Report.
- Go to Tax and then to Withholding Tax Balances subtab.
You could see Absolute Difference between the Balances in Register and Balance in Ledger.
Balance in Tax Register gets cleared when the respective Withholding Tax Return is Released and Balance in Tax Ledger gets cleared when the Tax Return is Paid.
You can check the Withholding Tax Returns by the following Steps:
Go to the Tax Management Work center.
- Go to the Tax Returns view and then to Withholding Tax Returns Subview.
- Show All Tax Returns and Search for the respective Tax Return ID.
The Status of the Tax Return will be Reported which clears the Balance in Tax Register and it will be shown as zero. Since the Tax Return is not paid yet, the Balance in Tax Ledger remains causing the Absolute Difference.
You have to pay against the respective Withholding Tax Return and the Balance in Tax Ledger will be cleared.
Please notice that the Balance in Tax Ledger will be cleared as of the Posting Date of the Tax Payment.
To compare the withholding tax balances in the tax register against the balances of the tax accounts for a key date you can use the Withholding Tax Reconciliation report.
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