Sap Accounting: Re: [sap-acct] TDS is getting calculated twice @ the time of invoice & payment.

Re: [sap-acct] TDS is getting calculated twice @ the time of invoice & payment.

Posted by pyprabha (FICO)
on Aug 1 at 9:59 AM

Hello FICO-FRIEND,

What you are explained is absolutely true.

Steps:
1. posting advance payment 1000 @2% tds system will deduct the tds 20
2. posting invoice for 10000 @2% tds system will deduct the tds 200

But totally put together it should 200 because the total invoice amount is
only 200 but not 220(20+200).

System is always right provided should know to use it properly.

Once you finished the above two steps need to clear the advance payment with
invoice at that time system reverse the tds 20 entry which you deducted at
advance payment posting.

Then you will have only one tds entry when invoice is generated for
2000@tds2% 200 only.

Note:
For this we have to do small config change.

Path-Financial a/cing-- Financial Accounting Global Settings-- Withholding
Tax-- Extended Withholding Tax-Calculation-- Withholding Tax Type-- Define
Withholding Tax Type for Payment Posting

Then select your tax type and activate the radio button *Cent.inv.prop*.

Hope you will try in Quality and experience how the system is behaving. Hope it will
work.

Thanks
prabhakar.

---------------Original Message---------------
From: Mr. Joshi
Sent: Friday, July 29, 2011 12:44 AM
Subject: TDS is getting calculated twice @ the time of invoice & payment.

Hi Everyone,

We are facing one issue regarding TDS. We have maintained withholding tax of invoice and payment both in vendor master due to this TDS is getting calculated twice at the time of invoice and payment.
The reason of keeping both is that sometime we have to make advance payment first and sometime invoice is processed first and then payment is made. As per rule, we deduct TDS whichever is happened first.

Every time user has to deactivate the WHT in master at the time of payment or invoicing whatever happens second time.

Is there any way to avoid TDS deduction @ the second time. Or any functionality within SAP that system ask whether TDS needs to be deducted or not.

Kindly help on this issue.

Thanks & Regards

SJ
FI Consultant

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