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Withholding tax calculation issue

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Posted on by imran ul haq

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Hi Friends,

I was configuring the withholding tax in version 45 and defined the Ledger posting profile under withholding setup with "Withholding tax" field defined the ledger account with posting type as "Withholding tax" in Main account.

Now when I am trying to post the payment journal (Customer), it is showing the error ledger Account missing for the transaction type Withholding tax. And when I flip the ledger account definition, delete the account for "Withholding tax" field and put the ledger account in "withholding tax offset" (As shown in above screenshot), journal get posted, and when checked the related voucher, posting type was showing "withholding tax".

Is there any more setup or I missed anything, please advise.

Also find one more issue when posting the Vendor invoice journal, withholding tax group not showing in the line, hence after posting the journal at the time of posting the Vendor Payment journal not able to calculate the withholding tax, even the Calculate withholding tax and withholding group is enabled/defined on the vendor master form.

Thanks in advance

Regards,

Imran Ul Haq

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Dynamics 365 Finance

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André Arnaud de Cal... 303,679 Super User 2026 Season 1 on at

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Hi Imran,

I'm not familiar with the withholding tax as I never used it in my implementations. It sounds odd that it is working in case you set up the main account in another field. It can be useful to create a support ticket and get clarification if this is a bug.

For the second question, I can't comment as I don't know the exact flow or required setup.

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Preethi Vijay 4 on at

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Hi Imran,

In the screenshot, withholding tax and settlement account should be added.

when you create the line in the vendor payment journal, automatically withholding tax will be calculated.

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imran ul haq 4,025 on at

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Hi Andre,

Thanks for the suggestion, actually before opening the ticket I would like to discuss here with the experts, maybe I am missing something.

Hi Preethi,

I give that try also but no luck.

Regards,

Imran Ul Haq

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TerjeHals 64 on at

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Hi Imran,

Have you set up your accounts with the correct posting type?

Please refer to the setup in our environment:

Ledger posting groups:

Main account transaction type for Withholding tax account (2735):

Main account transaction type for Withholding tax offset (2736):

Main account transaction type for settlement account (2742):

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Alireza Eshaghzadeh 14,839 Super User 2026 Season 1 on at

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Hi,
Can you provide the error message? and elaborate about business requirements?

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imran ul haq 4,025 on at

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Hi Terjehals,

yes, I did the same what you had shown in the screenshots, the issue is when I create the Invoice journal even the Withholding tax group is not coming on the lines, even I defined the Withholding code on the vendor master and enable the calculate withholding tax.

Hi Alireza,

When I manually select the Withholding tax details on the Invoice journal and trying to post the Payment journal, below error is coming:

Regards,

Imran Ul Haq

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