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Withholding tax temporary calculation on PO

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Posted on by LIN LIN

Hi All,

I can't see the calculation result for withholding tax in PO. I've already open the parameter and select both item WH TAX and WH tax group on procument category line. Anyone could help on this?

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Dynamics 365 Finance

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Arvind Bharti 264 on at

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Withholding tax temporary calculation on PO

Hi,

Did you also select on Vendor? because withhlding is for vendor?
LIN LIN 60 on at

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Withholding tax temporary calculation on PO

Hi Expert,

But I've seen this feature Withhold tax calculation during invoicing | Microsoft Learn,

it seems could view withholding tax direct on the PO. And also when I test the pending vendor invoice (create pending vendor invoice without PO) the withhold tax not effective. But based on the posting it seems could work. Do you have any idea how I can get this function?
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Saif Ali Sabri 1,819 Super User 2025 Season 1 on at

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Withholding tax temporary calculation on PO

To see the withholding tax calculation in a Purchase Order (PO), ensure the following:

Withholding Tax Setup: Confirm that the withholding tax codes, groups, and item groups are properly configured under Tax > Setup > Withholding tax.

Vendor Setup: Make sure the Withholding tax group is assigned to the vendor under Accounts payable > Vendors > All vendors > Tax information.

PO Line Configuration: On the PO line (not just the procurement category), verify that:

A Withholding tax item group is applied.

The procurement category is correctly linked to the withholding tax item group.

Calculation View: Withholding tax isn’t shown directly on the PO form. Instead:

Go to Invoice > Invoice journal after posting, or

Check Tax > Withholding tax transactions from the PO or invoice journal to view the calculated amount.

If you're still not seeing results, try simulating the invoice posting in a test environment to trigger the calculation.