3712469 - Error 'Withholding tax amount exceeds total bank line item amounts (Message no. 7Q320)'

When posting transactions in the Cash Journal, the system displays the below error message:
'Withholding tax amount exceeds total bank line item amounts'
Message no. 7Q320

SAP S/4HANA Cloud Public Edition

The issue occurs due to the exchange rate(for e.g, from EUR to USD) has not been maintained. The withholding tax calculation requires this exchange rate to properly convert and validate the amounts. 

Maintain the required exchange rate for the transaction currency to the company code currency.

Steps to maintain exchange rate:

1. Open the 'Manage Exchange Rates' app
2. Select the relevant Exchange Rate Type (usually 'M' for average rate).
3. Verify or maintain an exchange rate for:
   • From Currency: Transaction currency (e.g., EUR, GBP, etc.)
   • To Currency: Company code currency (e.g., USD)
   • Validity Date: Must cover the posting date of the transaction.
4. Save the entry.
5. Repost the transaction in the Cash Journal to confirm the error no longer occurs.

Result:
After maintaining the exchange rate, the system will correctly calculate withholding tax amounts, and the error message will no longer appear. Transactions in the Cash Journal can then be posted successfully.

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