How Tax Calculation Holds Work

When tax calculation is enabled for partner tax integration, the application can automatically place certain holds on invoices.

The application places the following system holds on invoices that have tax errors.

• Tax Calculation
• Tax Distribution Generation

These holds appear when you use the Validate Payables Invoices process for validating batches on invoices that have transaction tax errors. You won’t see the hold in invoices validated online or through REST API.

For example, a Tax Distribution Generation hold is placed on an invoice when the application is unable to derive a recovery rate during tax distribution generation.

These holds aren't manually releasable.

Hold	Hold Type	Reason for Hold	Manually Releasable?
Tax Calculation	System hold	Tax couldn’t be calculated.	No
Tax Distribution Generation	System hold	Tax distributions weren’t generated.	No

You can view the error details in the Hold Details section. You can use these holds to track the invoices that failed processing during batch validation due to tax calculation or Recovery Determination errors.

Releasing Tax Calculation Holds

The application automatically releases these holds once the underlying reason is resolved, either during invoice validation or cancellation.