strange error with calculate withholding tax

[Former Member]

Dear Experts,

i have a strange problem, i have a vendor XYZ with net balance 180-, and he has withholding tax code AA with percentage 0.5, when i am going to post an invoice to vendor for ex, by 1000

system calculate the withholding tax 1000 * 0.5 = 5 and add the balance of the vendor (180-) to the withholding tax to be 185 at the withholding tax line item in the document.

why the system add the balance to withholding tax amount

Note: this issue occurs for only the mentioned vendor

please provide me with any help to fix this problem

Thanks & Regards

[Former Member]

Hi,

I think while doing WHT tax configuration for invoice posing TAX CODES you have taken Posting indicator 2 "Offsetting entry to G/L account ("grossing up")" Which is adding the amount and causing the problem. Please try Posting indicator 1 , i hope it will work for you.

Regards

Arun

[narasimhulu_konnipati]

What is the entry you get when you post Vendor Invoice - FB60

Material / Service a/c dr 1000

To Vendor a/c 900

To TDS a/c 100

Means, you are liable to pay 100 TDS to Govt which shows as -100 in your GL Account. Like this, the TDS will be added every time and shows the total balance.

Now where u are confused?

Thanks