Skip to main content

Notifications

Finance | Project Operations, Human Resources, ...
Suggested answer

Subsequent calculation of withholding on partially settled Prepayment purchase order invoice

(0) ShareShare
ReportReport
Posted on by 15

Hello,

I have created a PO with Amount 7500 and selected WHT to be deducted as 10%. Further I had created a Prepaid invoice of amount 3000, then I settled the prepaid invoice and WHT was deducted as 300. Now I had created a Invoice against PO and applied the prepaid invoice of 3000. The remaining invoice is showing as 4500. Now I have settled the invoice of 4500 but WHT is being calculated on 7500 which is 750 instead tax base should be 4500 and WHT should be 450 accordingly.

Is there any functionality where the tax base for calculating the WHT based on the remaining balance of the invoice i.e 4500.

Image

Image

  • RE: Subsequent calculation of withholding on partially settled Prepayment purchase order invoice

    Hi Sourav,

    Thank you for your reply.

    No, your provided workaround is not fulfilling the requirement. As by changing calculation parameter to "Percentage of Net Amount" WHT is calculated on excluding of sales tax amount. It is not incorporating the requirement of WHT should be applied on partial payment (tax withheld at prepayment of a PO and remaining WHT should be on the remaining payment of PO i.e PO invoice amount - Prepayment amount).

    Regards,

    Awais

  • Suggested answer
    SouravDam Profile Picture
    SouravDam 11,723 on at
    RE: Subsequent calculation of withholding on partially settled Prepayment purchase order invoice

    Hi Muhammad Awais Tahir,

    Please set the calculation parameter in Withholding Tax Codes setup as "Percentage of net amount" and see if it solves the issue.

    pastedimage1673783372268v1.png

    Regards,
    Sourav

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Announcing Our 2025 Season 1 Super Users!

A new season of Super Users has arrived, and we are so grateful for the daily…

Vahid Ghafarpour – Community Spotlight

We are excited to recognize Vahid Ghafarpour as our February 2025 Community…

Congratulations to the January Top 10 leaders!

Check out the January community rock stars...

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 292,111 Super User 2025 Season 1

#2
Martin Dráb Profile Picture

Martin Dráb 230,934 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Product updates

Dynamics 365 release plans