Dynamics Community Forum Thread Details

Multiple withholding tax on invoice but only one appears in vendor payment journal

Hello Experts,

I am facing an issue with withholding tax behavior in Dynamics 365 Finance.

Scenario:
I created a Purchase Order with two lines and each line has a different withholding tax code.

Example:
Line 1 – Withholding tax code WT 10.21%
Line 2 – Withholding tax code WT 20.42%

After posting the vendor invoice, the system calculates withholding tax correctly and I can see both withholding tax transactions.

Example:
WT 10.21% – calculated correctly
WT 20.42% – calculated correctly

However, when I create a Vendor payment journal and go to Settle transactions → Withholding tax, the system shows only one withholding tax code instead of both.

Configuration details:
• Withholding tax origin = Percentage of net amount
• Calculation method = Whole amount
• Vendor withholding tax group is assigned
• Item withholding tax groups are configured
• Both withholding tax codes appear correctly on the invoice

Question:
Why does the vendor payment journal show only one withholding tax code even though the invoice contains multiple withholding tax transactions?

Is there any configuration related to settlement or payment that controls how withholding tax appears during vendor payment?

I have attached screenshots of the invoice withholding tax transactions and the payment journal for reference.

Any guidance would be greatly appreciated.

Thank you.