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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Dynamics 365: WHT Amou...
Small and medium business | Business Central, N...
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Dynamics 365: WHT Amount isn't deducted from AP Amount

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Posted on by CU27090506-0 68
Hello,
 
We need assistance regarding a withholding tax issue.
 
When we post a purchase invoice, the withholding tax (WHT) amount is not being deducted from the Accounts Payable. As a result, the debit and credit lines in the General Ledger are not balanced, as shown in the screenshot below.
 
 
 
What We’ve Checked So Far:
    •    The WHT Product and Business Posting Groups on the invoice lines are correct.
    •    The WHT Posting Setup has the necessary combinations in place.
    •    WHT is enabled in the Purchases & Payables Setup.
    •    The vendor has the correct WHT Business Posting Group assigned.
 
This was working correctly last week, and no deployments or changes have been made since then. The issue started occurring this week.
 
How should we proceed? Which should we check next?
Categories:
Dynamics 365 Business Central
bcwht.png
I have the same question (0)
  • Mansi Soni Profile Picture
    Mansi Soni 7,846 Super User 2025 Season 2 on at
    Dynamics 365: WHT Amount isn't deducted from AP Amount
    Moved from Dynamics 365 General to Small and Medium business forum.
  • Martin Dráb Profile Picture
    Martin Dráb 235,609 Most Valuable Professional on at
    Dynamics 365: WHT Amount isn't deducted from AP Amount
    Which D365 app is it about? Business Central?
  • Suggested answer
    DAnny3211 Profile Picture
    DAnny3211 10,787 Moderator on at
    Dynamics 365: WHT Amount isn't deducted from AP Amount

    Hi,

     

    The issue you're facing—withholding tax (WHT) not being deducted from the Accounts Payable amount—despite correct setup, suggests that something in the posting logic or configuration may have changed or become misaligned.

     

    Here are some targeted steps to help troubleshoot further:

     
     

    1. Verify WHT Calculation on Invoice

     

    • Open the affected purchase invoice and check the WHT calculation details.

    • Confirm that the WHT amount is being calculated and displayed correctly before posting.


      •  
     
     

    2. Check WHT Application Method

     

    • In Purchases & Payables Setup, confirm that the WHT Application Method is set to "Deduct from Vendor Amount".

    • If it's set to "Post as Expense", the WHT will not reduce the payable amount.


      •  
     
     

    3. Review Vendor Ledger Entries

     

    • After posting, check the Vendor Ledger Entries to see if the WHT amount is posted separately or not at all.

    • This can help confirm whether the WHT is being applied but not reflected in the AP line.


      •  
     
     

    4. Inspect General Posting Setup

     

    • Double-check the General Posting Setup for the WHT combinations.

    • Ensure that the WHT Product Posting Group and WHT Business Posting Group are correctly mapped to the appropriate G/L accounts.


      •  
     
     

    5. Test with a New Invoice

     

    • Create a test invoice with the same vendor and posting groups.

    • See if the WHT behaves correctly. If it does, the issue may be specific to certain transactions or data.


      •  
     
     

    6. Review Recent Data Changes

     

    • Even if no deployments occurred, check for:

      • Changes in vendor master data

      • Modifications to posting groups

      • Updates to WHT setup tables


      •  
     
     

    7. Enable Debug Logging

     

    • If the issue persists, enable debug logging or use the trace functionality to capture the posting logic during invoice processing.


      •  
     
     

    Please verify if this helps narrow down the issue or if you'd like assistance reviewing specific setup screens.

     

    Thanks and best regards,

    Daniele

    Note: This response was prepared with support from Copilot to ensure clarity and completeness.

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