How To Fix FP058 - Vendor is subject to withholding tax

SAP Error Message - Details

• Message type: E = Error

• Message class: FP - Invoice Parking

• Message number: 058

• Message text: Vendor is subject to withholding tax

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

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Smart SAP Assistant

• What is the cause and solution for SAP error message FP058 - Vendor is subject to withholding tax ?

  The SAP error message FP058, which states "Vendor is subject to withholding tax," typically occurs when you are trying to process a payment or create an invoice for a vendor who 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 payments made to them.
  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 tax regulations applicable in your jurisdiction.
  Payment Processing: When attempting to process a payment or create an invoice, the system checks the vendor's withholding tax status and finds that withholding tax must be calculated and deducted.
  Configuration Issues: There may be issues with the configuration of withholding tax codes or the vendor's tax classification.
  
  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 indicators are correctly set up.
  If the vendor should not be subject to withholding tax, you may need to change the withholding tax indicator or update the vendor's classification.
  
  
  
  Check Payment Document:
  
  Ensure that the payment document you are trying to process is correctly configured to handle withholding tax.
  If you are using a specific payment method, verify that it is set up to accommodate withholding tax.
  
  
  
  Withholding Tax Configuration:
  
  Review the configuration of withholding tax codes in the system (transaction code OBWW).
  Ensure that the withholding tax codes are correctly defined and linked to the appropriate vendor types and payment types.
  
  
  
  Consult with Finance/Tax Department:
  
  If you are unsure about the withholding tax requirements for the vendor, consult with your finance or tax department to ensure compliance with local tax regulations.
  
  
  
  Testing:
  
  After making any changes, test the payment or invoice processing again to ensure that the error does not reoccur.
  
  
  
  Related Information:
  
  Withholding Tax Types: Understand the different types of withholding taxes that may apply (e.g., income tax, VAT, etc.) and how they are configured in SAP.
  Tax Jurisdictions: Be aware of the tax regulations in your jurisdiction, as they can vary significantly and may affect how withholding tax is applied.
  SAP Documentation: Refer to SAP Help documentation for detailed information on configuring and managing withholding tax in SAP.
  
  By following these steps, you should be able to resolve the FP058 error and ensure that your vendor payments are processed correctly in compliance with withholding tax regulations.