How to deduct tds on advance payment IN SAP
How to deduct tds on advance payment to vendors.
Hi Kishore,
You need to define the Extended Withholding Tax type based on payment. Assign WHT code to WHT type and complete the relevant configuration. Below link will help you to config WHT in SAP.
http://help.sap.com/saphelp_470/helpdata/en/e5/0781474acd11d182b90000e829fbfe/content.htm
Assign WHT type and code in vendor master data.
Standard SAP will start deducting WHT on downpayment.
Hope it helps.
Thanks,
Deepanshu
Similar Messages
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How to deduct TDS while making an Outgoing Payment
Company wants to deduct TDS while making an outgoing payments to Contractors / Jobworkers / Transporters.... can anyobody guide me
Edited by: Marc Riar on Feb 19, 2008 10:23 AMHi sanjay,
For deducting the with holding tax, First you have to define some withholding tax codes with the percentages of the amount.
For creating the with holding codes
go to
Administration>Setup>Financials>Tax>WithHolding Tax>
There a create tax code
Now Go to A/P Invoice. Select a vendor and change Itrem/service type to Service
Then give the details of g/l and make WTax Liable to yes. There you can set the with holding tax code that was created. Based on that you can see the Wtax amount in the footer of the form..
When you make the payment to particular vendor it automatically creates ledger entry for with holding tax also..
Regards,
Jagadeesh.V -
TDS on Sales Invoice and TDS on Advance Payment
Hi All
Can any one explain the below WHT scenario.
"If we get advance payment from customer and after some time (15days) we have posted an sales invoice against him. Now on which amount we have to deduct TDS. (At the time of Advance from Customer we have deducted TDS).
Again we have to deduct TDS on Sales Invoice or not?
Thanks
ChandraHi Chandra,
First of all, TDS means Tax Deduction at Source and so it does not apply to receipts from customers. It applies only in case where we pay to our vendors. While we receive the payment from our customers, its the customer who deducts the TDS and not we. We only book the total Invoice that we book as revenue and take the TDS certificate at the end of the year from the customer and submit it to the IT dept. By submitting the TDS certificates, we need not pay tax to the extent of TDS certificates.
So its only when we make advance payment to our vendors/sub-contractors or while booking the invoice of our vendors (whichever is earlier) that we have to deduct TDS.
Hope you understand this. Kindly revert if u need further information.
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CA. Karthik Narayan N S
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How to stop/warn another advance payment on same vendor and invoice
HI,
How to make an error or warning message, if user going to made another advance payment or book payment (f-47 and f-48).
For instance an advance payment or payment request already exist on specific vendor with specific PO no.Currenty by E-47 and F-48 system not showing error or warning message that advance payment or paymnet request already exist. Although it showing by t-code MIRO when we go to book invoice.
Regards,
KhalidOBMSG Message Status change
OBA5 Message Status change -
Is there a way to deduct TDS on outgoing payment without making AP down payment Invoice?
Hi
One of my client want to deduct TDS on out going payment but they do not want to create AP down payment invoice for this.
Please suggest me the best way.
Regards
AshishHi,
No other feasible workaround other than creating AP Down Payment Invoice to record the TDS.
Kind Regards,
Jitin
SAP Business One Global Support -
Configuration of tds on advance payment to vendor and adjustments?
Can someone please help me in configuring sap for tds on advance paid to vendor and adjustments.
Will be happy if you could send me screen shotsHi,
Fo configuring Advance payments sterps if as same as the invoice posting types and little differences are there
Configure as per the step Define withholding tax payment posting types.
Regards,
Kanike -
Security Deposit by Distributor - How to deduct TDS
HI SAP Gurus,
Could you please let me know the procedure that is followed in SAP for the below scenario
Actually the user need to give Interest on Security Deposit by Distributor - where in i need to deduct TDS.
The Distributer her is customer and he wants to know the exact process that is followed for this scenario.
Regards.
Edited by: Gabriel Borde on Sep 21, 2010 8:02 AMHi,
You can create the below:-
(1) Setup the interest calculation indicator for customa arrear
(2) Then post that interest calculated on the custom account itself (Customizing OBV1). (If the customer is assigned to the WHT code in customer master, system will deduct the WHT on interest to customer.)
Regards,
SDNer -
TDS deducted on advance get reversed when we clear advance with invoive. but how the system should work in case there is a change in the rates of tds deducted between the two. For example, Advance made in march for Rs 10000, tds deducted @ 10 % 1000.
Now Invoice come in April for 30000/-, rated for TDS got changed (by budget) from either to 15% or 5%. We have made the approipriate tax codes and assigned them to the vendor master. But at the time of invoice processing TDS is deducted on whole 30000 @ either 15% or 5%.
Invoice 15 % 5%
TDS 4500 1500
F-54, Clearing of advance agt. Invoice, TDS will be reversed 1000 1000
Net TDS 3500 500
This is how system respond.
However, what should happen functionally is
Advance posting 1000 1000
Invoice [ 30000-10000] 20000 3000 1000
Total should be 4000 2000
I have checked JV, etc. but nothing is giving appropriate answer, Pl suggest on that.Hi
It probably depends on when the service is rendered. Was it rendered last year or after the TDS rate change?. Depending on that, TDS should be calculated. However it is reasonable to assume that service is rendered upon submission of Invoice. In that case, what the system does is correct. ie using the new tax rate of 15% or 5%, as per your example
Jayaram -
Deduction of TDS while clearing Advance payment through F-53
Hi Gurus,
I deducted TDS on Advance payment of 10000 and then deducted TDS on Invoice of 50000 with base amount as 40000.
Now, when i am clearing this invoice and advance payment through F-53 to pay the remaining balance, system is again deducting TDS on Advance payment.
Please tell me how can i solve this issue.
Thank Youhii
here the steps u need to follow is
1. while making the down payment TDS is deducted
u make down payment through f-48.
2. post invoice through FB60. here when u r going to the withholding tax tab u need to delete the payment tax codes. if u do not delete than the tax will be deducted during the payment..
3. now go to F-54 and transfer the advance payment to normal by clearing special G/L
here when u clear the down payment the TDS deducted at he time of down payment will also be reversed.
4. now finally go to F-53 and make the outstanding payment to your vendor ..
so in this steps there wont be duplication of TDS pain.. u will be paying only once that is at the time of invoice.
Hope u got ur answer
assign points..
sejal singh -
Withholding Tax(TDS) on Advance(F-48) and On Final Payment-F-53
Hi Expert,
I am facing an issue related to TDS, on vendor advance. Its little different scenario, However rule is whichever is early.
Requirement is like this, generally they deduct TDS on down payment and in case of final Payment. No TDS at the time of invoice booking.
For example- Down payment made to Contractor Rs 200 @ 2%, Total invoice value was Rs 1000. TDS to be deducted on advance will be Rs 4. Invoice booked for Rs 1000.
Hence at the time of payment F-53, system should deduct TDS Rs 16 on Rs (1000-200) Rs 800. How can we achieve same while making payment F-53?
If I have to do same thing in case of invoice (FB60) then I can change TDS base value manually and put Rs 800 then system will calculate automatically.
From configuration point of view I have ticked on-
Change view “Withholding tax type definition-posting at time of paym. Under this ticked both option one by one even its not working.
No centre invoice
Central inv.prop
Regards,
K.PrasadDear Mukthar,
I tried but its not working.During Payment system is adjusting TDS automatically which we paid on Advance but during payment,TDS on final payment is not clearing and not assigned amount is not getting zero.
Step 1: Advance Amount Rs 1000@ 2%
Step 2:Invoice Booked of Rs 5000,no TDS during Invoice booking but payment withholding Tax code was ticked during Invoice booking,as you suggested.
Note:Total Invoice value is Rs 5000 out of which Rs 1000 made as an advance.Please see-step 1.
Step 3:F-54 advance clearing against above Invoice
Step 4: Payment of Rs.4000 subject to TDS
Here is problem,system is calculating TDS on Rs 4000@2% which is correct but not assigned amount is not getting zero.
How to clear this?
Once you click on INR net 4,900 blue line,then amount entered gets 5000.
Now click on WH tax tab,which is showing everything correct. but question is how to clear Rs 80 and not assigned field make Zero.Which is our requirement. If not assigned become zero then issue resolved.
Hope you understand my problem.
If i click on difference posting and simulate then -Not assigned tab gets Zero but it create one open item with Document types-KZ, which again is a issue to clear and you cannot clear.And if you simulate it then system is reversing TDS on advance and final total TDS is crediting this time.Till here no issue. Here is simulation entry-
This you are able to get only once you click on difference posting but in FBL1N with document type KZ Rs 80 would be appear and that you cannot clear anyway.
Vendor Master detail:
Hope you understand my problem,if you run this scenario then you would have more clarity however I covered all process.
Regards,
Prasad -
Hi All,
I have gone through many threads but not able to find proper solution for a general scenario which will be requirement of many customer.
Scenario:
Is very simple. I have make Payment to Vendor on Acount ( Advance Payment) on which i need to deduct TDS.
As per TDS Manual nothing is mentioned how to manage this scenario.
While defining TDS code in WT window there are 2 options ( Invoice / Payment). If the payment option is selected and Payment is made nothing happens
I am aware i have to make AP downpayment for this and then make outgoing payment which unnecessaryliy increase one step for user.
Just want to confirm is there any direct way to apply TDS while making pyament on account.
Response will be appreciated.Hi,
3.6 Payment on Account
Navigation: - Banking Outgoing Payment TDS on advance payment can be deducted through outgoing payment based on u201CPayment on Accountu201D selection.
Points to remember:-
Vendor (Subject to Withholding Tax) should be selected.
WTCode of u201CPu201D type should be chosen.
u201CPayment on Accountu201D check box should be checked.
These are the lines from TDS add on manual -2007B if you make above settings then while posting the on account payment when you enter the amount in amount field in the header automatically the withholding tax fields are enabled and when you chose the category the witholding tax will be calculated and posted when you add the document
Please check it,This scenario is addressed by the manual
thanks
Md.nazeer Shaikh -
Hi All,
while doing invoice on foreign vendors system deducts tds on Fractions it is effect to my TDS filing in NSDL. how to roundoff TDS on Foreign payments.We check that every thing is ok, but we are facing the problem at the of foreign invoices only.
-
Hi experts,
How can I handle the advance payment of the customer and also for the vendor? i.e both the incoming and outgoing advance payment....
Regards,
BalaHi,
You can use Downpayment as Advance payment.. for more reff check out below link
http://help.sap.com/saphelp_sbo2005asp1/helpdata/en/69/c7aa38360ea14dba3a2d345c8b07af/frameset.htm -
Hi,
How do we handle advance payment in SAP? In my scenario customer wants to create a payment term called 30% advance and balance payment immediate after delivery. In standard SAP sales order does not get blocked automatically depending on the payment terms. However my requirement is to block the sales order if payment terms is having advance requiremnet and once the payment is received sales order should be released for delivery.
Secondly if the customer pays advance how do we track the payment against sales order? I mean we cannot create invoice unless delivery has been done so in case of advance how do we track the payment history?
GirishHi
Payment terms is common for both Customer and Vendor and hence you could not see Sales order block in the payment terms. It has to be done manually at the time of creation of the sales order only. You can create a reason for blocking of sales order and assign that at the time of creation of sales orders.
With regard to second point, Advance payment is handled through FI, which has no link to Sales order. Standard functionality is creation of billing document for the full amount only.
Regards,
Lakshmanan Krishnan -
Process for vendor advance payment for future delivery
hi guys
I am having an issue we need to do advance payment to vendor for the future delivery of goods like say for 2 months in future date. How do I make the advance payment in this scenario which screens do I use.
Please advice.
Kind regards
ArmanDear Expert,
Please go to T-Code: FBKP
Select Special GL, it transfers to next screen, there select the K(Vendors) with respect to 'A' for Down Payments.
There we need to assign Reconciliation Account as Sundry Creditors Account and Alternative Reconciliation Account as Advance to Vendors Account and Press Save Button.
F-48 - Down Payment Made
FB60 - Invoice - Vendor Invoice
F-54 - Clearing - Down Payment Clearing with respect to Vendor Invoice
F-53 - Post - Outgoing Payment with Clearing/ For remaining balance payment
Regards,
GK
SAP
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