tds on invoice and as well as clearing that invoice.

[Former Member]

HI everyone

                  I able to calculate tds on invoice on particular vendor but while clearing that amount using t-code f-53 system again calculating tds on same vendor which we have already deducted at invoice level.

my requirement is dont claculate tds on clearing the open items ....tell me some points where i need to make changes to overcome this issue

regards

Raj

[Former Member · Accepted solution]

Hi Pragya and prakash

replay to pragya

if i do the setting as you said remove the tick liable for WHT , system not able to calculate tds on down payment which would be done through f-48. It's working for good invoice and clearing invoice only not for down payments.

Replay to prakash

If i do the settings as you said remove the WHT codes at either payment or invoice level ,system not able to calculate tds on down payment which would be done through f-48. It's working for  invoice and clearing invoice only not for down payments.

kindly throw some point to calculate tds on down payment but not to calculate tds while clearing vendor open items .

Regards

Raj

[former_member686872 · Accepted solution]

Hi,

In Vendor Master assign only WTH type for payment code

Configuration same as above screen. System will give pop when you do down payment to vendor. that time you need to select manually .

Regards,

Preeti

[Former Member · Accepted solution]

Hi preethi

Thanks for your inputs , but i already did the configuration what you say, even system not pop up WHT information at the time of down payment level, not only that not calculating TDS .

kindly throw some points to solve an issue

Regards

Raj

[Former Member · Accepted solution]

Hi Raju

I have created one document on your scenario with all custo settings and end to end testing. Its working fine. You can check in your system if anything you are missing and retry it. i am not able to upload that file as we cant upload doc format in reply. so pasting all screen here in reply

Down payment with withholding tax scenario

Scenario: There is a down payment to vendor for EUR 100000@10% TDS. Invoice of EUR 200000 came later and there is no TDS deduction at invoice. TDS deduction is to be done at payment level

Custo settings:

1. 1) Vendor master settings

TW is WTT at payment level and I made it liable in vendor master

2) WTT settings

3) GL assignment

4) Creation of WT code

5) WT assignment to co. code

6) Activate WT for co. code

7) OBYR linking vendor recon to special GL recon account

Testing of scenario

T code: F-48

The WT info in pop up is blank, no need to input anything just press ok and simulate it. System will itself calculate the WT

So on 100000 10% TDS got deducted.

(just ensure posting key 29 WT field is optional. This can be checked in OB41 t code)

Now Invoice came for EUR 200000 and is booked in Fb60 without any TDS

3^rd step is to first clear down payment via F-54

Now pay the vendor F-53

Calculation: 200000-100000=100000*10%= 10000. So we need to pay vendor 90000

I hope it helps you

Regards

Pragya

[Former Member · Accepted solution]

Hi Pragya

Goods efforts  thanks for sharing this information i am totally agreed with you

thanks

Trinath

[Former Member · Accepted solution]

Hi Pragay

Thanks for your inputs, my issue has been solved.

Thanks for everyone who has spent some time and gave some inputs to solve an issue.

Regards

Raj

[Former Member]

hi pragya

      Thanks for your advise .but i knew TDS will be calculated both level. but what i wanna know is when am creating vendor invoice assume that amount will be 100000 salaries, tds on salaries 10%, edcati cess 2% it will be ok for Invoice level .

entry

salaries  100000 dr

to tds on salaries 10000

to edu cess            200

to vendor               89800

whlle clearing the open  items with vendor 89800 which we had posted the document in above using t-code f-53

not a down payment,(whereas system calculate TDS on down payment.)

system again calculating tds ,That's what am not able post a document because am making the payment to vendor with the amount 89800 only it's again calculate TDS but it's not correct i thought (correct me if am wrong)

Regards

Raj

[Former Member]

Hi Raju,

Please remove tax codes from Vendor Master With holding tax field ,but keep the with holding tax type for payment. It will allow you to deduct the TDS while processing advance payment to the vendor but will not deduct the TDS when you are process the payment for which invoice has been received and credited to the vendor account.

Reward points if it helps you to resolve this query.

Kind Regards,

Prakash Kumar

[Former Member]

Hi Raj,

can you please try this solution. In vendor master you must have two diff WTT with WTC. Can you please uncheck the liable option from WTT that is assigned to payment level in custo and for vendors where TDS needs to be deducted at payment level you can deactivate liable option from WTT that is assigned to invoice level in custo

For ex:

WTT 28 assigned to payment level in custo

WTT 83 assigned to invoice level in custo

in vendor master assign both WTT but tick liable option only where req, dont tick liable in both the cases. i hope this will work

now in case of vendor where tax can be calucated at invoice level also and at payment level also there you need to manually edit the WTC at invoice level or payment level. i am not able to think any other solution for this situation.

Regards

Pragya

[Former Member]

hi

Thanks for your advice's

Replay to prakash kumar

as you said if i remove the whithholding tax codes for vendor at payment level it will not calculate tds  while clearing invoice using t-code F-53 but am getting error

i.e special gl indicator not defined or incorrect

message no f5838

even i already maintained special g/l indicator K and A  also system throwing same error kindly suggests me how to overcome this issue

Replay to pragay

as you said if i remove the Tick mark liable for whithholding tax at either payment or invoice level it will not calculate tds  while clearing invoice using t-code F-53  but am getting error i.e special gl indicator not defined or incorrect

message no f5838

even i already maintained special g/l indicator K and A also system throwing same error kindly suggests me how to overcome this issue

[Former Member]

Hi

replay to prakash and pragay

Thanks for your valuable inputs both scenario is  working well(above replay it's solved)

    as you say i did exatly it's working fine but while making a down payment to vendor system throwing an error

i.e pricing error: mandatory condition 29OT is missing

29ot condition type which i had maintaind in tax procedure for output tax.....why the system throwing error like that, throw some points to solve an issue

Regards

Raj

[Former Member]

Hi Raju,

Please mark the answer right/ helpful  which solved your issue so that it can help others in future and please close the thread.

Kindly log a new thread for new query.

Thanks and Regards,

Prakash Kumar

[Former Member]

hi  prakash

                 my issue has not been solved, you gave some helpful answers to me but system is not calculating tds on down payment.so i wanna know what the error it is!

could you throw some points to solve that an issue completely, it would have been appreciate if you say as early as.

Regards

Raj

[Former Member]

Hi Raju,

Please mention the error screenshot or details !

Thanks and Regards,

Prakash Kumar

[Former Member]

Hi Raj

TDS gets deducted at invoice and payment level because the TDS is maintained at both level i.e at invoice level and at payment level. Please check the custo. If TDS needs to deducted at invoice level only then remove the custo from payment level.

This will meet your purpose. But in case it need to be maintained at both level i.e at invoice level and payment level then may be you can try two things. They are not that lucrative but still can solve your purpose

1) At vendor master don't enter WTC only enter WTT(withholding tax type) and at the time of invoice or payment add the code whatever is needed and in whatever situation it is needed. But this solution is not that feasible as end user will not remember this for which vendor tax code need to be added and at the invoice time or payment time

2) 2ndly may be at the time of payment F-53 you can select the open item and double click on withholding tax tab and there you can delete the amount with edit option

I hope it helps

Regards

Pragya