For a non-localized country, you need two withholding tax lines calculated in a supplier invoice (for example, regular withholding tax and withholding tax on VAT line item); However, this is not working as system only calculates one line.
SAP Business ByDesign
Reproducing the Issue
- Go to the Supplier Invoicing work center.
- Click New Invoice Without Purchase Order view.
- Enter required data such as Supplier, Buying Company, etc. and click View All.
- Enter Product, Quantity and Net Price.
- Click Taxes tab > Withholding Tax Details sub-tab.
- In case the automatic withholding tax determination doesn't happen (Withholding Tax Code is blank), select the withholding tax code manually.
- Notice that two withholding tax lines are displayed, however the system it not able to compute taxes on both, only in the first one.
In your SAP Cloud Application Studio you are using standard withholding tax calculation procedure to calculate withholding taxes. Standard procedure will support only one level of tax type, and for the non-localized country there are multiple withholding tax types.
You need to create a custom withholding tax calculation procedure and implement it accordingly.
For further information, please check PDF document "Enable Withholding Tax for NonLocalized Countries in SAP Cloud Applications Studio" > section 5.2 Configure Tax Calculation Procedure (Optional), available in SAP Business ByDesign Localization Toolkit.
The Localization Toolkit is available in SAP Business ByDesign–Localization Jam Page (by invitation only).
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