Withholding Tax Realized - Payment

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Posted on by EY-19060110-0

Hi Experts!

From my testing, I set Realized Withholding Type = Payment. Once i've posted Purchase Invoice with selected WHT Tax Bus. Posting Grp & WHT Tax Prod. Posting Grp, it will post to WHT Tax Entries with unrealized amount, example below.

However, when i apply payment to this invoice in Payment Journal, it shows no WHT Tax Entries will be posted. From my thoughts, i assume will post to WHT Tax entries upon posting the Payment in Payment Journal?

Do you have any ideas about it? Any setup do i missed out?

Thanks in advance!

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Dynamics 365 Business Central

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Mansi Soni 9,929 Super User 2026 Season 1 on at

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Hello,

In Business Central, when Realized Withholding Type = Payment, the system does not always create new WHT entries during payment posting. Instead, it depends on whether the withholding was already fully recognized at invoice posting and how the realization setup is configured.

In your case, since unrealized WHT entries were already posted at invoice level, the payment journal may not generate additional WHT entries it may only settle or reverse unrealized amounts to realized, rather than creating new entries. That’s why you see no WHT entries will be posted during payment.

You likely have no setup issue; this behavior is standard. You should check the Withholding Tax Setup (realization rules and posting groups) and verify whether realization is expected at invoice or payment stage for your configuration.

https://www.youtube.com/watch?v=d4mYltz4Zwg
https://yzhums.com/71463/

Hope this answer helps you!

If this answer helps you, kindly mark it as a verified answer

Regards,
Mansi Soni

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