This rule allows SAP Business Network buyers to enforce that their suppliers exclude the withholding tax from the gross amount calculation for all invoices that are generated through SAP Business Network. If the invoices are generated through third-party ERP software, no validation on withholding tax is made by SAP Business Network.

Note: This feature is available to all buyers, but it is not enabled by default. Contact SAP Support to enable this feature.

If a buyer enables this rule for all their suppliers, then the method in which the gross amount is calculated on invoices and line-item credit memos is changed.

Earlier, gross amount was calculated as follows:

Gross Amount = Subtotal + Tax + Withholding Tax + Shipping + Special Handling

Net Amount = Gross Amount - Discount

Amount Due = Net Amount + Withholding Tax

Now, if the buyer enables the feature for all its suppliers, the calculation changes:

Gross Amount = Subtotal + Tax + Shipping + Special Handling

Net Amount = Gross Amount - Discount

Amount Due = Net Amount + Withholding Tax

SAP Business Network for Procurement & Supply Chain