3578497 - Withholding Tax not automatically calculated while posting the payment in SAP S/4HANA Cloud Public Edition

While trying to clear the invoice or make payment towards an invoice, withholding tax is not calculated.

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SAP S/4HANA Cloud Public Edition

1. Post an invoice using the app Create Incoming Invoices or Create Supplier Invoices
2. Try to clear the invoice with the app Post Outgoing Payments.

The withholding tax base amount and withholding tax amount were manually entered while posting the invoice. This is considered as a manual entry and the system will not calculate the withholding tax.

1. If the Indicator: Allow Manual Entry of Withholding Tax Base Amount is set for a withholding tax type, the field withholding tax base amount is ready for input. If the flag is unchecked, the manual entry of Withholding Tax Base Amount is not allowed. 
2. If the Indicator: Allow Manual Entry of Withholding Tax Amount is set for a withholding tax type, the field withholding tax base amount is ready for input. To automatically calculate the withholding tax amount, this flag needs to be unchecked.
3. If the flags are checked and the values are entered manually, then while posting the payment, withholding tax won't be calculated; manual entry has precedence over any configuration.
4. This configuration is available in the SSCUI Define Withholding Tax Type for Payment Posting  and Define Withholding Tax Type for Invoice Posting under the section Control.
   
   

Refer to KBA 2516303 - Withholding tax(WHT) is not calculated while doing payment.

Withholding Tax, Calculation, Production, Upgrade, Invoice, Payment, APP F0859, APP F-36, Manual Entry, Journal Entry, Post Outgoing Payments, 104225, 104226 , KBA , FI-AP-AP-Q-2CL , Withholding Tax (Calculation) (Public Cloud) , Problem