2998451 - Withholding Tax Calculation During Payment for Israel Country

You have posted Supplier Invoice for country Israel without WHT calculation. In the payment, the Withholding tax is not calculated as per the Tax Rate maintained in the Supplier master data.

SAP Business ByDesign

1. Go to the Supplier Invoicing work centre.
2. Post the Supplier Invoice without WHT Tax for Country Israel. 
3. Go to the Payables work centre.
4. Click on the Supplier Accounts view.
5. Find the supplier of the invoice created in step 2, and click View.
6. Select the Invoice created in step 2 and click Pay Manually By.
7. Select the Payment method as per your requirement. 
8. In the Payment Screen, you observe that the Withholding Tax is not calculated. 

Israel has an exceptional requirement where in as per the country laws the withholding tax should be calculated at the time of payment and any calculation that happens at the time of invoicing should not be considered.

In the ByDesign system, to achieve this functionality a recalculation of withholding tax gets triggered at the time of payment, only if a supplier invoice has been issued which takes the current rate maintained in the supplier master.

In order to calculate the Withholding Tax in the payment, you have to maintain the following:

1. Withholding tax rate in the Supplier Financial Data.
2. Post the supplier invoice with the Withholding tax code (the supplier invoice has to be posted before the payment).
3. Clear the payment with the supplier invoice.

The Journal entry of the payment will contain the withholding tax details.

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