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Withholding Tax Type Base Amount Calculation

Hi Experts,

I am facing an issue related to withholding(WH)Tax calculation minimum base amount on withholding tax type level. I have defined withholding tax type A1 and withholding tax code A1 & A2.

I have base amount of 25,000 on WH tax type level. When I post vendor invoice through FB60 and I assign WH tax type and tax code A1 and A1 in vendor master. The system calculate tax 0 on this invoice. I have posted another invoice with same tax code and same amount then system calculate tax on 50,000 with accumulation which is correct.

When I post another invoice on same vendor with WH tax type and tax code A1 & A2 of 25000 amount but it calculate same tax zero on this invoice, if I post another invoice with WH tax type and tax code A1 & A2 of 25000 amount then system calculate tax.

I have defined minimum/maximum amount setting on WHT Type level in WH Type configuration, but I don’t know why system calculating tax on WH Tax code level.

My client requirement is that system should calculate tax base amount on WH Tax type level not on WH Tax code level, if vendor invoice exceeds the 25000 base amount on any WH tax code level then system start calculating tax on every upcoming invoice. I have given configuration screenshot below for reference.

Withholding Type Configuration setting:

Define Min/Max Amounts for Withholding Tax Types

Please suggest the correct course.


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