There are some vendors that providing supplies and services. There are different tax rates for supplies and services. For example for supplies there is tax rate @ 2% while for services there is tax rate @ 10%. A bunch of invoices having different categories of supplies and services with different withholding tax rate, which have to managed by user and there are chances of error in tax calculation while making payments against these invoices. There is an option available on vendor invoice journal form that system accept withholding tax group at the time of invoice journal posting and update the same in vendors transaction table (ventrans).
But when we make the payment to vendor against same invoice system update tax rate from vendor form. In case of multiple tax rates involved user have to change the tax codes manually as per requirement.
There should set up in D365 that system fetch tax group from vendor transaction table instead of vendor form, because at the time of invoice user assign the withholding tax group to each invoice and same store in vendor table.