User Manual

Post Manual Activities:

1. Create WHT keys for each contribution:

IMG Menu -> Financial Accounting (New) → Financial Accounting Global Settings (New) → Withholding
Tax → Extended Withholding Tax → Calculation → Colombia → Define Withholding Tax Keys

Country Key → CO

2. Create WHT Types

IMG Menu -> Financial Accounting (New) → Financial Accounting Global Settings (New) → Withholding
Tax → Extended Withholding Tax → Calculation→ Withholding Tax Type → Define Withholding Tax
Type for Invoice Posting

Country Key → CO
Same procedure for all contributions, for example:

• Mandatory Health Contribution

• Pension Solidarity Contribution
• Pension voluntary to mandatory pension contribution
• ARL contributions
• Voluntary Contribution
o Pension
o Housing
• Family Compensation Fund
 3. Create WHT Codes

IMG Menu -> Financial Accounting (New) → Financial Accounting Global Settings (New) →
Withholding Tax → Extended Withholding Tax → Calculation→ Withholding Tax Code → Define
Withholding Tax Codes

Country Key → CO

Same procedure for all contributions

4. Assign Withholding Tax Keys to Withholding Tax Codes

IMG Menu -> Financial Accounting (New) → Financial Accounting Global Settings (New) →
Withholding Tax → Extended Withholding Tax → Calculation → Colombia → Assign Withholding Tax
Keys to Withholding Tax Codes

Country Key → CO
 5. Define Withholding Tax Constants

IMG Menu -> Financial Accounting (New) → Financial Accounting Global Settings (New) → Withholding
Tax → Extended Withholding Tax → Calculation → Colombia → Define Withholding Tax Constants
 6. Assign WHT Types and WHT Codes to vendors

SAP Easy Access Menu

Accounting → Financial Accounting → Accounts Payable → Master Records → Change

Features of J1ICOVEND

Monthly Data for Freelancers

Transaction J1ICOVEND (Monthly data for freelancers) has been enhanced with the following new
features:

1. In the J1ICOVEND transaction, once you enter the company code, fiscal year, month, and vendor,
system populates the latest data for the freelancer. You need to maintain the changes in the
freelancer's declaration, if any, in the subsequent month and execute the transaction.

Refer to the following images for better understanding:

2. You don't need to maintain the data every month, if there no corrections or updates in the
freelancer's declarations.
Example: When you enter a freelancer's data using the transaction and post the documents
in January, system will generate the freelancer's invoice taking your inputs into
consideration. In February, if there are no corrections to the freelancer's declaration, you
don't need to maintain the data in the transaction (J1ICOVEND). But if there is a correction
in the freelancer's declaration for the month of February and if you don't maintain the data
in the transaction (J1ICOVEND) while posting the documents, system will generate the
freelancer's invoice taking January's data into consideration.
Yearly Pension Contribution and Yearly deduction Limit
By default, system generates the freelancer's invoice taking the pension contribution and deduction
limit as yearly contributions.

If you deselect the Yearly Pension Contribution and Yearly Deduction Limit checkboxes, system will
generate the freelancer's invoice taking the pension contribution and deduction limit as monthly
contributions.

Remember: Once you select the Yearly Pension Contribution and Yearly Deduction Limit checkboxes
and save the data, the checkboxes will be disabled, and you won't be able to deselect the checkboxes in
the same fiscal year.
Refer to the following images for better understanding:

Mandatory Checkbox
The system considers mandatory contributions of a freelancer only if you select this checkbox.

Pensioner Checkbox
If a freelancer is already a pensioner, select the Pensioner Vendor checkbox so that the freelancer's
invoice is generated without deducting the pension related contributions such as, pension mandatory
contribution, pension solitary fund, voluntary pension contribution, and volunteers' contribution
towards pension.

Remember: Once you select the Pensioner Vendor checkbox and save the data, the checkbox will be
disabled, and you won't be able to deselect the checkbox in the same fiscal year.
Refer to the following images for a better understanding:
Pension Exemption Rate
The pension exemption rate is calculated by the system as explained below.

For example, if the base amount lies between 4 - 16 minimum salary amounts, 1% of the base amount is
taken as the pension solidarity contribution.

Tip: You can derive the base amount by comparing the 40% of the invoice amount and 25 minimum
salaries. Whichever amount is less is considered as the base amount.

Refer to the below table to have an overview on the contribution rate according to the minimum salary
range.

Minimum Salary Range Contribution Rate (in %)

0-3 0
4 - 16 1
16 - 17 1.2
17 - 18 1.4
18 - 19 1.6
19 - 20 1.8
>20 2