Withholding tax

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Posted on by ankag

Hi,

I have one company with UAE localisation. I have done the withholding tax setup and it is working but the issue is at the point of vendor prepayment.

The requirement is to deduct withholding tax at the time of advance payment to vendors. So I am creating a vendor payment journal and selecting the prepayment option(checkbox). Now when I am trying to specify the advance amount on the journal lines system is not deducting withholding tax rather giving this error:-

"This line has withholding tax. To change the amount to pay, enter corrections in the Settle open transactions form."

Is there any way by which I can make advance payment after deducting withholding tax as I don't want to manually deduct withholding tax. Additionally, since system is giving this error I can't make advance payment journals post this setup.

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Ludwig Reinhard Microsoft Employee on at

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Good Morning ankag,

How did you record the advance payment?

Did you simply enter the payment amount in the vendor payment journal or did you create a prepayment invoice from the purchase order?

Would be great if you could share some details of the steps that you executed so far, ideally supported by some screenprints.

Many thanks and best regards,

Ludwig

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ankag 79 on at

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Thank you Ludwig for your quick reply.

I have not created prepayment invoice from the purchase order rather I am simply entered the payment amount in the vendor payment journal.

I have also selected the prepayment journal voucher checkbox under payment tab of the vendor payment journal as highlighted in the screenshot:-

But instead of deducting withholding tax system is giving the below mentioned error.

"This line has withholding tax. To change the amount to pay, enter corrections in the Settle open transactions form."

I am unable to understand whether is there any mistake on my side or system won't deduct withholding tax automatically on advance payment.

I need to use this functionality as it may be used for Non PO invoices.

FYI- I am unable to change the size of the screenshots attached.

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Ludwig Reinhard Microsoft Employee on at

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Hi ankag,

The code resp. the error that you see checks the whether a settlement exists.

If you have not marked at least an existing invoice or other open position for settlement, AX won't let you proceed.

That is, you are right that the prepayment and withholding functionality don't work in combination for your scenario.

Best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Good Morning ankag,

Have you been able to review the answers and been able to test it?

Please let us know whether your questions got answered or some additional help is needed here.

Many thanks and best regards,

Ludwig

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ankag 79 on at

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Hi Ludwig,

Thank you for your help.

It is now clear to me that system won't automatically deduct withholding tax in case of direct vendor payment journal(i.e. without creating prepayment invoice).

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rocker 105 on at

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Hi Ludwig,

I am facing similar issue like ankag, unable to do advance payment with withholding tax from vendor payment journal.

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Ludwig Reinhard Microsoft Employee on at

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Hello rocker,

What AX/D365FO version do you operate?

Can you share additional information on the exact problem that you have and possibly share error messages / screenprints?

Many thanks,

Ludwig

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