Withholding tax calculation.

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Posted on by PrasitP.

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Dear All,

When I create payment journal and mark invoice for settle then system will calculate Withholding tax
as a screen shot below.
2555.WHT_2D00_3.jpg
Amount before sales tax is 5,490.00 and Withholding tax rate = 3%,

Withholding tax amount should be 164.70 (5,490.00 x 3%)

7870.WHT_2D00_2.jpg

But now Withholding tax amount is calculate from amount include sales tax(5,874.30),
I would like to change base amount for calculate Withholding tax to be amount before sales tax(5,490.00).
Could anyone tell me how to set configuration for change it.
Thank you in advance.
PrasitP.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

In the GL form that you use for setting up the withholding tax codes you have the option specify the origin (net or gross amount) from which the withholding tax is calculated.

I assume that your setup is not in line with what you expect.

Can you double check and possibly change that?

Best regards,

Ludwig

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PrasitP. 152 on at

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Dear Dudwig,

Yes, at the first time I selected "Percentage of net amount"
but I wonder why it calculate from Gross amount.

Do you have any idea or may be have something wrong.
Could you please advise me.

Thank you.

PrasitP.

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Ludwig Reinhard Microsoft Employee on at

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Hi PrasitP,

What has been setup for your journal?

Do you have the parameter 'amounts include sales tax' active or not? So, does your journal record gross or net amounts?

Best regards,

Ludwig

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PrasitP. 152 on at

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Dear Ludwig,

As your advice, I checked in Journal setup, The option "Amounts include sales tax" is not active.

For other check I doubt why the figure in the field "Invoice amount excl. tax in invoice currency" = 5,874.30
(it should be 5,490.00 as previous screen shot attach).

Or there is anything wrong. Could you please advise me again.

Thank you.
PrasitP.

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PrasitP. 152 on at

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Hi Ludwig,

I still found this problem till now, and I wonder why this issue happen in AR module only but AP is work fine.

Prasitp.

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Chohan 100 on at

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Hi Guys i have the same issue but i did not see any resolution/solution to this post? do we have any solution to this in D365 OOB. thanks

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