The reasons for this requirement are:
1) Not all the items/main accounts are to be included in the calculation of the withholding tax base amount.
2) During the invoice phase, the people who is posting the invoice is aware of the correct withholding tax amount.
3) The person who posts the invoice is different from the one who pays the invoice.
4) Starting from 2019, vendor invoices are received through electronic .xml document.
This calculated amount should be inherited during the payment process (invoice settlement), for the following reasons:
5) The person who posts the payment is different from the one who posts the invoice.
6) The person who posts the payment does not have the invoice pdf/xml.
7) In 95% of the cases, the D365 calculation is not coherent with the archived invoice.
Comments
Option to recognize the withholding tax payable GL entry at the time of invoicing should be available. It is required in the Philippines to record and deduct the withholding taxes when the purchases become payable. In addition to this, option to make necessary adjustments for the posted withholding tax during invoicing should be available. In this way, the user who will create the actual payment can review the posted withholding tax and adjust if needed.
Category: Tax
We would like to extend this feature to Posting WHT with Purchase Invoice in Egypt, as it is required by regulations to calculate WHT on Foreign vendor Invoices and not to be deducted from Payment.
Category: Tax
We should get this delivered as soon as possible as a lot of times it is creating a difference in the payment advice being sent to the suppliers.
Category: Tax
Thank you for requesting this modification. It will exclude customizations that each Italian customer requires.
Category: Tax
Administrator
The calculation part of this idea is planned in 2023 wave 1 and here is the detail Withhold tax calculation during invoicing | Microsoft Learn.
For the inheritance functionality, please feel free to leave your comments and thoughts here to further influence our development plan. Thank you.