Finance | Project Operations, Human Resources, ...

Withholding tax temporary calculation on PO

(3) Share

Report

Posted on by LIN LIN

109

Hi All,

I can't see the calculation result for withholding tax in PO. I've already open the parameter and select both item WH TAX and WH tax group on procument category line. Anyone could help on this?

Categories:

Dynamics 365 Finance

I have the same question (0)

All responses (4)

Answers (0)

Suggested answer

Saif Ali Sabri 2,354 Moderator on at

Like (1)

Report
Copy link

Link copied!
To see the withholding tax calculation in a Purchase Order (PO), ensure the following:

Withholding Tax Setup: Confirm that the withholding tax codes, groups, and item groups are properly configured under Tax > Setup > Withholding tax.

Vendor Setup: Make sure the Withholding tax group is assigned to the vendor under Accounts payable > Vendors > All vendors > Tax information.

PO Line Configuration: On the PO line (not just the procurement category), verify that:

A Withholding tax item group is applied.

The procurement category is correctly linked to the withholding tax item group.

Calculation View: Withholding tax isn’t shown directly on the PO form. Instead:

Go to Invoice > Invoice journal after posting, or

Check Tax > Withholding tax transactions from the PO or invoice journal to view the calculated amount.

If you're still not seeing results, try simulating the invoice posting in a test environment to trigger the calculation.

Was this reply helpful? Yes No
LIN LIN 109 on at

Like (0)

Report
Copy link

Link copied!

Hi Expert,

But I've seen this feature Withhold tax calculation during invoicing | Microsoft Learn,

it seems could view withholding tax direct on the PO. And also when I test the pending vendor invoice (create pending vendor invoice without PO) the withhold tax not effective. But based on the posting it seems could work. Do you have any idea how I can get this function?

Was this reply helpful? Yes No
Suggested answer

Arvind Bharti 789 Super User 2026 Season 1 on at

Like (0)

Report
Copy link

Link copied!

Hi,

Did you also select on Vendor? because withhlding is for vendor?

Was this reply helpful? Yes No
Suggested answer

Saif Ali Sabri 2,354 Moderator on at

Like (0)

Report
Copy link

Link copied!
With the “Withhold tax calculation during invoicing” feature (added via Feature management), Dynamics 365 Finance allows withholding tax to be calculated and viewed during invoice entry, including on PO invoice lines and pending vendor invoices.
Here's what you need to check to activate and use this feature properly:
✅ 1. Enable the Feature

Go to System administration > Workspaces > Feature management.

Search for “Withhold tax calculation during invoicing”.

Enable the feature and complete any required database synchronization.

✅ 2. Check Withholding Tax Parameters

Navigate to Accounts payable > Setup > Accounts payable parameters.

Under the Sales tax tab, ensure Calculate withholding tax is set to "Yes".

✅ 3. Vendor and Tax Setup

Make sure the vendor has a valid withholding tax group.

Ensure the procurement category or item used has the correct withholding tax item group.

✅ 4. Test in Pending Vendor Invoice

Create a Pending vendor invoice.

Add a line, and before posting, click Invoice > Tax > Withholding tax to view the calculation.

If this doesn’t show anything, verify that:

The vendor and item group setup are correct.

You’re using a category or item that has a matching setup.

The tax code has valid effective dates and thresholds.

🟡 Note:
This feature enables on-screen preview of withholding tax during invoice entry but does not affect the PO form directly — it’s visible only at invoice level (PO invoice or pending invoice), not at PO creation.

Was this reply helpful? Yes No