3588276 - Withholding Tax Code Not Determined Automatically During Supplier Invoice Creation

Withholding tax code not determined automatically while creating a new supplier invoice. System also shows the error message - "Withholding tax classification missing" appears during supplier invoice creation.

SAP Business ByDesign

1. Go to Supplier Invoicing work center
2. Select Common Tasks - New Invoice without Purchase order
3. Select Company and Supplier and Product details
4. In Items tab, navigate to Taxes sub tab
5. Withholding tax details are not determined

The withholding tax determination logic considers only the withholding tax code of the service master. Hence we always recommend to maintain only one withholding tax code in the supplier master. If you wish to work to maintain Tax Code, then maintain in the Service Master record, along with different Income Types. The automatic determination of Tax code works on the Combination of Service master tax code and Income type.

To maintain the withholding tax code in the supplier master data, you can follow the below steps. 

1. Go to product Portfolio work center
2. Go to Products - By Services view
3. Select the relevant Service
4. Select Edit and click on View All
5. Navigate to Taxes tab
6. Under Withholding Tax Classification, maintain the Withholding Tax details

Withholding tax code, automatic determination, supplier invoice, service master, tax code, income type. , KBA , SRD-SRM-SI , Supplier Invoicing , Problem