SAP ERP Financials and FICO Handbook

46 CHAPTER 1 INTERVIEW QUESTIONS AND ANSWERS
5. Bank determination
a. Ranking—The order in which payments will be processed
b. Amount—Available amount for payment
c. Account—G/L account to which posting will be made for payment
d. Expenses and charges—Account to be posted to if any expenses are incurred
while processing payment
e. Value date—Relevant for cash management module
91. What are the steps for configuration of withholding tax?
You need to configure the following steps for extended withholding tax:
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Define withholding tax types—Invoice posting
Define withholding tax types—Payments posting
Define withholding tax codes for withholding tax types
Define recipient types
Assign withholding tax types to company
Define accounts for withholding tax
Activate the withholding tax code and type to the company code
Assign the withholding tax type to the vendor
92. What journal entries are passed in the system from the time of good
receipt until payment is made to the vendor?
In a simple business scenario, you will pass the following accounting entries from
the time of goods receipt until payment to vendor.
1. Transaction code MIGO
Material Account debit
GR/IR Account credit
2. Transaction code MIRO
GR/IR Account debit
Vendor Account credit