E1: 04: Calculate Withholding Tax (R04580) Not Calculating the Foreign Gross Amount of the Withholding Tax Line Based on Taxable Amount (Doc ID 2778106.1)

Last updated on SEPTEMBER 11, 2024

Applies to:

Symptoms

The Calculate Withholding Tax (R04580) report is generating the Withholding Tax line with the Foreign Amount based on the Gross Amount even though the R04580 is run with the Processing Option Withholding Calculation set to 1 to calculate based on the Taxable Amount.

Steps:

1. Set up a Supplier with Withholding Tax in Supplier Master.

2. Enter a Foreign Voucher with regular Tax (not Withholding) for the Supplier from step 1.

3. Run the R04580 for the voucher in step 2 with the Processing Option Withholding Calculation set to 1 to calculate based on the Taxable Amount.

4. In the Supplier Ledger (F0411) lines just created by R04580 notice the Foreign Amount is calculated based on the Foreign Gross Amount instead of on the Foreign Taxable Amount.

Cause

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