SAP Knowledge Base Article - Public

1903406 - While Positing Supplier Invoice Withholding Tax Is Not Calculating.

Symptom

While posting a Supplier Invoice with Withholding Tax, you have identified that Withholding Tax is not getting calculated. You have verified that the vendor master data, PAN number and Withholding Tax Settings are maintained in it.

Reproducing the Issue

  1. Go to the Supplier Invoicing work center.
  2. Select the Common Task view and click on the New Invoice Without Purchase Order.
  3. Select your desired Supplier from the drop down and make all the necessary entries.
  4. Go to the Items tab and select any service items from the Product ID drop down box.
  5. Select Quantity, Tax Code and Net Price etc.
  6. Select the Taxes sub tab and then click on the Withholding Tax Details and select the Tax code from the drop diwn field of Withholding Tax Code.
  7. You can find that system is not calculating Withholding tax despite of giving the Withholding Tax Code.

 

Cause

You have not tick on the Withholding Tax Required check box under the Company Tax Arrangements view.

Resolution

  1. Go to the Supplier Invoicing work center.
  2. Select the Invoices and Credit Memos view.
  3. Select the option All Documents in the Show field and type your desired Supplier Invoice Document ID and click on the Go button.
  4. Select your desire Supplier Invoice Document ID and click on the Edit button.
  5. Click on the View All and click on the Items -tab and click on the Taxes sub tab and check the Tax Reporting Unit what you have maintaned.
  6. Now go to the Tax Management work center.
  7. View the Tax Company Tax Arrangements view.
  8. Select teh option Current Company Tax Arrangements in the Show field and Click on the Go Button.
  9. Select the Tax Authority ID based on the Tax Return Type Withholding Tax Returns - File xx with Tax Number Type.
  10. Click on the Edit button and go to the Company Tax Arrangements tab.
  11. Select your Company and tick on the Withholding Tax Required check box.
  12. Click on Save button. 
  13. Now if you post any supplier Invoice you can see that Withholding Tax is calucuating properly.

Keywords

KBA , SRD-FIN-ERM , Travel and Expense Management , How To

Product

SAP Business ByDesign all versions