How to deal with Invoice after Down Payment

Question

HI ,
I am testing Down payment  for vendor and We have  activated withholding tax in our company code . I was just wonder how system will behave if we have suppose 50 % of down payment   .
Complete  process is as below
Create a request in F-47 for 50 % of Invoice before Invoice comes
then Run f110 and paid to vendor
Now after this Invoice will come and get posted .
Now I have some concerns
1) I have set up  Tax  codes on payment and enter in f-47 can see tax amount is deducted  there .
2 ) How invoice will be processed  whether we will deduct whole Wh.Tax  or need to set up .
3 how we will deal with rest 50% of payment
Many Thanks

Answer 1

Hi Preeti,
The process is as follows:-
1. 50% Down Payment on Invoice - F-47/F-48/F110
     Vendor (with SPL GL A) - Dr.   50
          To bank A/C                       45
          To TDS A/c                          5
2. Invoice booking of Vendor         - FB60
     Expenses A/C......Dr.           100
          To Vendor                         90
          To TDS                              10
3. Down Payment Clearing - F-54
         Vendor A/C..... Dr                           45
          TDS A/c .... Dr                                 5
                To Vendor With Special GL A    50
TDS also gets adjusted here ( The setting required in SPRO is that you need to tick the " Cent Invoice prop" in withholding tax type for Payment posting)
4. Vendor Payment
      Vendor Dr. 45
        To Bank      45
Regards
Kavita