TDS deducts on down payment and adjuste against invoice post.

[Former Member]

Hi, SAP Teams,

1. I created a down payment request and converted into Down payment which value was 70,000, at that time system deducted the TDS amount full on Down payment value.

     Down payment entry

     Vendor                Dr   70,000

     TDS                    Cr     1,400

     Bank Entry          Cr   68,600  posted the entry and remitted the TDS amount.

2. Against this down payment I raised one invoice value with Rs.80,000 , here I changed the With holding tax type Base value Rs.10,000 (because already I deducted 1,400 on Rs.70,000)

     Expenses a/c    Dr. 80,000

     TDS                   Cr       200

      Vendor A/c        Cr  79,800

3. After that I try to make the invoice balance amount adjusted with down payment through F110, system picks up the Balance vendor a/c Rs.11,200 instead of Rs.9,800 and reversed the TDS amount on Down payment.

Invoice amount 79,800

DP Paid            70,000

Balance amt      9,800

SAP Posted

     Vendor   A/c     Dr. 79,800

     Vendor   A/c     Cr. 70,000

      TDS                Dr.   1,400  Down payment TDS Amount

      Bank A/c         Cr. 11,200

If TDS reversed the same month no issue, suppose subsequent month we posted the invoice, how can we adjusted.

Please give correct me if I am wrong.

[Former Member]

Hi,

After invoicing, you have to do one more step transfer clearing for the invoice amount and advance amount.

Please go through below link.

http://scn.sap.com/thread/3602571

Regards,

Venkat

[Former Member]

Thanks Mr.Venkat for your reply.

But they were discussing about the TDS deduction.

My question, TDS should be deducted whichever is earlier.

(See my postings)

1.  Down payment Entry: TDS deduction on down payment of 70,000 @ 2% =1400 and

     remitted on 30-04-2016.

2.  Invoice Entry: Invoice Value is 80,000, so I changed the WT base value 10,000 only

     (Inv.80,000 - DPymt 70,000=10,000), so system deducted TDS 200 (on 10,000 @ 2%)

      so vendor a/c is 79,800 (80,000-200) TDS amount Rs.200 paid on 31-05-2016.

     Invoice net amount     79,800 '(-)

     Down payment paid    70,000

     Net payable                  9,800 '(-)

3.  I try to make the payment through F110, system picks up the invoice amount 79,800 and 

     reversed the Down payment 70,000 and also the TDS amount 1400/- deducted on down

     payment also.

4.  So my net payment will be 9,800 + 1400 =11,200. My Question is how to avoid the Down payment TDS reversal only.

[Former Member]

Hi,

Actually, We will adjust the down payment with invoice amount. Then net amount will pay to the vendor.

I am not understanding why you have reversed the TDS down payment and again asking for the net payable to vendor. The scenario has not relevant.

How to avoid Down payment TDS reversal means you want to reverse the TDS amount or you do not require to deduct the TDS amount at the time of down payment.

Please elaborate

Regards,

Venkat

[Former Member]

Dear sir,

When I try to clear the invoice with down payment adjust, system reversed the down payment TDS, I am not reverse it.  SAP posted the entry like this.

suppose, if down payment TDS not reverse, the net payment is ok.

To be posted the Actual entry

     Invoice net amount       79,800 '(-)

     Down payment paid     70,000

     Net payable                  9,800 '(-)

But system posted,

     Vendor   A/c     Dr. 79,800

     Vendor   A/c     Cr. 70,000  (this down payment included TDS portion)

      TDS                Dr.   1,400  Down payment TDS Amount reversed by system.

      Bank A/c         Cr. 11,200