TDS Deduction during APP Run

[Former Member]

Dear Expert,

When user is  running APP system is deducting TDS, while TDS already has been deducted at the time of invoice so system should not deduct TDS at the time of APP. This is not happening if we make payment with F-53.

I suggested client to remove tax code for payment  from vendor master data, than system will not deduct TDS in APP but problem is if we remove TDS code we have to manually give TDS code at the time of any advance payment.

Client want some solution without removing TDS code from vendor master.

Please suggest on this.

Thanks in advance..

[Former Member]

I checked the line item in payment proposal, system is taking base amount and calculating TDS on that, while system should pick vendor payment amount. (invoice amount - TDS). I also got one more issue, if there is some advance payment to vendor and we are also clearing that in APP than system adding TDS amount in payment which was deducted on down payment.

Example -: I made a down payment of  12000 and deducted  20% TDS

Entry -:  vendor a/c                Dr.    12000

               Bank a/c                Cr.      9600

               TDS payable          Cr.      2400

Than invoice 32000, deducted 20 % TDS on 20,000 (as i have already deducted TDS on 12000 Advance)

Entry -:   Expanse                      Dr.           32000

               Vendor   a/c                Cr.           28000 

                TDS payable a/c        CR             4000

When i see FBL1N, i have to pay 16000 (28000 -12000 ) Now i run APP and system generate below entry -:

Vendor a/c                Dr.          28000

TDS payable a/c       Dr.            2400

Vendor a/c                Cr.          12000

Bank Outgoing          Cr           18400

Now i am paying 2400 extra which i deducted as TDS. Can anyone please explain why this is happening ? Is it a configuration issue or some process ?