How to ensure for material POs, TDS does not get deducted.

Question

Dear Seniors,
Single vendor is supplying material and doing some service also.  How do we ensure that for material POs, TDS does not get deducted.
Regards
KVKR

Answer 1

Hi kkvr,
As i see your requirement is to execute MRRL alongwith the performing a proper TDS deduction and also using single vendor.
There is no Standard SAP solution for this, as a workaround you will have two options for doing the same
Option 1 : Create a different vendor code then you can run mrrl for the vendor code one for service and another for material
The demerits of this solution is duplication of vendor code, which results in not having proper information for the SCM personnel for the purpose of vendor evaluation and vendor reconcilation
Option2:
you need to enahce the Purchase order at line item level with the a custom fields for the WHT tax code to be selected at the time of PO creation. For this you need to do a screen enahcement in PO and also at the time of providing the popup for selection it should only dipslay the wht codes available in the vendor master so that proper control on the tax code selection will happen.
The practical issues here is the po creation person should have the knowledge of the tds code which you need to see whether it is possible or not or you can also suggest that finance controller should be part of po release startegy to check these po's to ensure the correct tds code populated.
Further to this you need to also perform additional enahcement changes for the selected tds codes in the po it should be replaced at the time of mrrl transaction making other tds tax codes base as 0 or removal of tds codes not applicable in the exit.
This exit with the help of the abaper you will be able to find hte standard enhacements available for mrrl and code the same over there so that at the time of posting this will happen.
Further, to this while writing the logic you can also further stream line it as for material po's the tds not to be deducted at all so that user input for the material po's can be avoided and it is required only for service po's this disticntion you can do with the item category.
With this you can perform the enahncement with a minimal changement to achieve your purpose.
Do let me know if you have any quereies,
Regards,
Bharathi