How To Fix F5122 - Vendor is subject to withholding tax

SAP Error Message - Details

• Message type: E = Error

• Message class: F5 - Document Editing

• Message number: 122

• Message text: Vendor is subject to withholding tax

What causes this issue?

A withholding tax indicator is entered in the vendor master record and
no exemption of the liability to withholding tax currently exists.

System Response

The liability to withholding tax is drawn to your attention.

How to fix this error?

Check and complete the specifications on withholding tax on the entry
screen.
INCLUDE 'CUSTOMIZED_MESSAGE_INFO' OBJECT DOKU ID TX

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message F5122 - Vendor is subject to withholding tax ?

  The SAP error message F5122, which states "Vendor is subject to withholding tax," typically occurs when you are trying to process a payment or invoice for a vendor that is subject to withholding tax regulations. This message indicates that the system has identified that the vendor is set up in such a way that withholding tax must be applied to the payment.
  Cause:
  
  Vendor Master Data: The vendor is set up in the system with withholding tax indicators. This means that the vendor is subject to withholding tax according to the configuration in the vendor master data.
  Payment Processing: When attempting to process a payment or invoice, the system checks the vendor's withholding tax status and finds that withholding tax must be applied.
  Configuration Settings: The company code or the specific payment method may have settings that enforce withholding tax for certain vendors.
  
  Solution:
  
  
  Review Vendor Master Data:
  
  Go to the vendor master record (transaction code XK03 or FK03).
  Check the withholding tax information in the vendor's master data. Ensure that the withholding tax type and rates are correctly configured.
  
  
  
  Check Payment Document:
  
  Review the payment document or invoice you are trying to process. Ensure that the withholding tax is being calculated correctly.
  If you believe that withholding tax should not apply, you may need to adjust the vendor's withholding tax settings or the specific transaction.
  
  
  
  Adjust Configuration:
  
  If necessary, consult with your SAP configuration team to review the withholding tax settings in the system. This includes checking the configuration for withholding tax types, rates, and the relevant company code settings.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for more detailed information on handling withholding tax in your specific version of SAP.
  
  
  
  Contact Support:
  
  If the issue persists and you are unable to resolve it, consider reaching out to your SAP support team or consulting with an SAP expert for further assistance.
  
  
  
  Related Information:
  
  Withholding Tax Types: Understand the different types of withholding taxes that may apply (e.g., income tax, VAT).
  Tax Codes: Familiarize yourself with the tax codes used in your organization and how they relate to withholding tax.
  Legal Compliance: Ensure that your organization is compliant with local tax regulations regarding withholding tax, as this can vary by country and region.
  
  By following these steps, you should be able to address the F5122 error and ensure that your vendor payments are processed correctly in accordance with withholding tax regulations.