Withholding Tax (TDS) with Category as Payment not working in 9.1

[rajesh_khater]

Hi,

I am using SAP B1 9.1 PL00 India localization DB.

I have defined a few WT codes with Category as Payment.

These tax codes do not show in either the AP DownPayment Invoice or the Outgoing Payment. Both these transactions only show the WT codes having Category as "Invoice". I have selected both Invoice category and Payment category WT codes in the BP master.

Then what is the use of Payment Category WT code?

Thanks.

[Former Member]

Hi Rajesh

You need to define category as invoice. Payment category won't work. change category and it will be fine.

Regards,

Chintan

[rajesh_khater]

I have already tested a few scenarios on Invoice Category. If Payment category wont work, why that option is provided, any idea?

[Former Member]

Hi Rajesh,

Withholding category for payment is provided but it's not working while making on payment. In India withholding tax is only working on invoice level.

Regards,

Chintan

[rajesh_khater]

I think the Payment Category TDS works for AR Invoice and Incoming Payment. But I need to know the documented behaviour.

From what I have tried,

1. During AR Invoice, you can select the Payment Category WT Tax code but it will not affect the WT Tax GL until you record an Incoming Payment against the AR Invoice.

2. For Payment Category WT Tax code, system allows to edit the WT amount in AR Invoice even after the AR Invoice is added. However, once you record an Incoming Payment against the AR Invoice, you can no longer edit the WT amounts in AR Invoice.

3. For Invoice Category WT Tax code, system does not allow to edit the WT amount in AR Invoice after the AR Invoice is added, whether or not the Incoming Payment is recorded.

Hope this helps someone.

I have discovered this behaviour from test entries, but it will be great if I can get a document explaining the designed behaviour.

[Former Member]

Hi,

Yes but why do you want to first to select TDS in AR invoice then you want to select again in payment.

If that is useful for your implementation go for it.

Regards,

Chintan

[Former Member]

Hi Rajesh,

In the Withholding Tax we have a two types of category

1. INVOICE – the withholding tax calculation appears in the invoice and is recorded in the Journal Entry when the invoice is added.
2. Payment – the withholding tax calculation appears in the invoice, but is recorded in the journal entry when it is created by the incoming payment based on that invoice.

Thanks & Regards,
Harshit