3598755 - Withholding Tax is not getting deducted in Down Payment Request

• In the creation of a Down Payment Request, the system is not calculating the gross payable amount by deducting the withholding tax amount.
• Despite this, the total gross value is displayed without the deduction of the withholding tax in the payable for the relevant supplier account open items.
• This issue also persists during the outgoing bank transfer, where the system does not deduct the withholding tax as per the Down Payment Request.

SAP Business ByDesign

1. Go to the Payables work center.
2. Go to the Supplier accounts sub view.
3. Search for the relevant Supplier ID.
4. Navigate to the Trade payables--> Open items.
5. Select the required Down payment request.
6. Give view All and navigate to Items tab
7. Select the first line item, where the withholding tax rate is 2%.

Again, in the same supplier account, it shows total gross value without deducting value according to the withholding tax rate percentage or even while doing outgoing bank transfer system not deducting withholding tax as per down payment request.

In such scenario, check the line items in relevant Down payment request. For example, if there are two-line items with the product details select both the line items each by each.

• First line item, the maintained withholding tax code: 01 --> Tax rate: 2%
• Second line item, the maintained withholding tax code: Z01 --> Tax rate: 0%

Ideally if there is a different withholding tax codes maintained, the open amount transaction currency will still show only the total gross amount without any tax deduction, and this is the system behavior. This will also apply while creating outgoing bank transfer, system won't deduct withholding tax as per down payment request.

Note: The Tax code numbers, and Tax rates references are given as examples.

Firstly, check whether the down payment request is paid or not, if not try to create down payment from the down payment request. The tax deduction will be applied in the payment not in the open amount under payables. 

To work around this, follow the below steps.

1. The same withholding tax code must be maintained for both line items in the Down payment request.
2. The down payment request should be selected and paid manually through the outgoing payment option.
3. In the line items, the withholding tax will be deducted from the applied net amount.
4. The deducted amount becomes visible only by activating the ‘Start Personalization Mode’ and enabling the withholding tax details.
5. Once enabled, the deducted amount can be viewed in the relevant section.

Down Payment Request, Withholding Tax, Gross Payable Amount, Outgoing Bank Transfer, Payables Work Center, Supplier Account, Tax Rate , KBA , SRD-FIN-ACC , Financial Accounting , Problem