3733518 - Withholding tax calculated on incorrect base amount when multiple tax codes are present – SAP S/4HANA Cloud Public Edition

• When posting a document with TDS, the system calculates tax on an incorrect base amount.

• SAP S/4HANA Cloud Public Edition

1. Create or open a supplier document (invoice or journal entry) with withholding tax calculation enabled.
2. Ensure multiple tax line items exist in the document while a single tax code is maintained in the supplier line item’s Basic Data.
3. Post or simulate the document and observe that the withholding tax base only considers deductions for the maintained tax code, leading to an unexpected base when multiple tax codes are present.

• A single tax code maintained in the supplier line item causes only that corresponding tax amount to be deducted when computing the net base for TDS. Other tax line items are not deducted, which appears as an incorrect base in scenarios with multiple tax codes.

1. If all tax line items must be considered as deductions for the TDS base, leave the Tax Code field empty in the supplier line item’s Basic Data after enabling the Calculate Tax flag.
2. If only one specific tax should reduce the base, keep that single tax code maintained and align expectations with this behavior.
3. Use the Withholding Tax Calculation Analysis app to review how the withholding tax base and amounts are derived for the document. Refer to: Withholding Tax Calculation Analysis.

tds, withholding tax, incorrect base amount, wrong base, multiple tax codes, supplier line item tax code, tax base calculation, net base, wht calculation, india tds, calculation analysis, tax code field empty, s/4hana cloud, invoice withholding, journal entry withholding , KBA , FI-AP-AP-Q-2CL , Withholding Tax (Calculation) (Public Cloud) , Problem