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WHT BUSINESS POSTING GROUP AND ABN ERROR

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Hi All,

I have setup WHT Business Posting Groups, but now if I have the company registered and enter the ABN I get the following error: /The field WHT Business Posting Group must be blank.: If I do not have an ABN for the registered check box marked then no GST is flowing through to a GL account expense purchase invoice.

Any ideas?

Thanks!

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Dynamics 365 Business Central

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Jun Wang 8,208 Moderator on at

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what is your localization of BC?

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Jainam M. Kothari 15,721 Super User 2026 Season 1 on at

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May this can help : https://learn.microsoft.com/en-us/dynamics365/business-central/localfunctionality/australia/how-to-set-up-withholding-tax

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Jeffrey Bulanadi 9,106 Super User 2026 Season 1 on at

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Hi,

You're encountering an error when entering an ABN for a registered company while the WHT Business Posting Group is populated. The message “The field WHT Business Posting Group must be blank” is expected behavior in the Australian localization of BC.

Let’s break down what’s happening:

1. Why the error occurs when ABN is present
In the Australian localization, Withholding Tax (WHT) is only applicable when a supplier does not provide an ABN. This aligns with ATO regulations, which require tax to be withheld from payments to unregistered suppliers.

If the ABN is entered and the Registered checkbox is marked, BC assumes the supplier is compliant

Therefore, WHT should not apply, and the WHT Business Posting Group must be blank

If you’ve assigned a WHT group while ABN is present, the system throws the error to prevent incorrect tax treatment

2. Why GST doesn’t flow when ABN is missing
If the supplier is not registered and no ABN is provided, BC disables GST posting for that vendor. This is also by design:

GST is only applicable for registered entities

Without an ABN, the system assumes the supplier is not GST-eligible

You’ll need to rely on WHT setup to handle tax obligations in this case

3. How to resolve the issue
Here’s what to check:

If the vendor has an ABN, remove the WHT Business Posting Group from the Vendor Card

If the vendor does not have an ABN, leave the ABN field blank and assign the appropriate WHT Business Posting Group

Confirm that WHT Posting Setup is configured correctly to route withheld amounts to the right G/L accounts

Helpful references:

Set Up Withholding Tax (AU) – Microsoft Learn
WHT Posting Group Setup – GitHub Source

If you find this helpful, feel free to mark this as the suggested or verified answer.

Cheers
Jeffrey

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Ahmad Subhani 607 on at

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Hi,

For GST-registered vendors (with ABN), leave the WHT Business Posting Group blank.

For non-registered vendors (no ABN), assign a WHT Business Posting Group and manually manage GST if applicable (often GST is not applicable in this case).

Ensure GST setup in VAT/Tax Posting Groups is aligned with how the vendor is treated (registered vs. unregistered).

Mark the Answer as Verified if this is Helpful.

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Gerardo Rentería Ga... 25,547 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints. Set Up Withholding Tax [AU] - Business Central | Microsoft Learn

Best Regards
Gerardo

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