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author's profile photo Former Member
Former Member

How is the "Payment" category works in India Localization

Hi Experts,

I am doing some transactions simulation in a India Localization database.

In Witholding Tax Setup, there is two category : "Invoice" and "Payment"

As I create Invoice (A/R or A/P) and Collections/ Payment (Incoming / Outgoing Payment), I can't select any codes with "Payment" category.

In some localization, once the user selected the WHT with Payment category, he/she can still select eh WHT tax code in the AR/AP Invoice. Once posted, there is no entry created for the Witholding tax. Upon collection/payment, the WHT amount is reflected on the open invoice line and once posted, the entry for Witholding Tax is available.



Is there anyone who knows how Payment category works for India Localization.

Is there any available documentation that can we use as reference?




Regards,



Riza

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    author's profile photo Former Member
    Former Member
    Posted on Apr 25, 2016 at 10:39 AM

    Check this thread..

    Payment category withholding tax list is not sh... | SCN

    The withholding tax code in "Payment Type" is blocked in A/P down payment requests, A/P down payment invoices, and A/P invoices.

    It is available only for AR side.

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    • Former Member Former Member

      Hi Jiju,

      We found a work around to do that will fit with our client's requirement.

      What are we going to do is:

      1. Change the default linked account to Bank charge in G/L Determination to "TDS Account (Witholding Tax) Entry under Bank charge the TDS Amount.

      2. In case, there is bank charge during payment, the TDS amount will be recorded to other payment means, change the linked account to TDS Account.

      Thank you all,

      Riza.

  • author's profile photo Former Member
    Former Member
    Posted on Apr 25, 2016 at 09:06 AM

    Hi Riza,

    If you have selected Payment as Category in Withholding Tax Setup then when you create AR invoice it will just highlight the Withholding tax amount which is going to be deduct at the time of incoming payment.

    If that Withholding Tax code having Payment category once set as default for any Customers or vendor and if there is an open Invoice for which payment is not done in such cases you will not able to change Category.

    You need to remove the TAX code from default from any BP or you need to complete the cycle of invoice and payment.

    Let me know if you are not clear.

    Thanks,

    Harshal

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  • author's profile photo Former Member
    Former Member
    Posted on Apr 25, 2016 at 09:47 AM

    Hi Rashal, Please take a look on the screenshots above. It is a comparison between India Localization database versus Singapore localization database.

    Is the same process works for India database? If yes, how?

    If not, is there any way how the process the transaction some output with the SG Localization?

    Thank you!

    Riza

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