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How to post to TCS final account directly during VF01/FB70

former_member611310
Participant
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Hi

We are implementing TCS changes as per goverment policy 206c(1H) which is effective from 01.10.2020. As per the snotes we need to configure TCS interim (intermediate) & TCS final accounts, where the TCS interim account will trigger during customer invoice posting through VF01 & FB70. After receiving the payment it will be transferred to TCS final account. But our client requirement is to maintain threshold limit 50 lakhs as per Govt policy and the TCS final account should trigger during invoice posting. They said that they not required the interim account and the TCS final account should trigger when the 50 lakhs threshold limit crosses.

Kindly suggest on the same.

Best Regards,

Ekambaram

Lakshmipathi
Active Contributor
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Added GST tag as this is related to GST India

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Answers (1)

Answers (1)

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hello ekambaram

I had responded to a similar query this morning and you can refer the rationale for using deferred tax functionality or the two GL as you call it.

https://answers.sap.com/questions/13144833/amendment-to-section-206c-tcs-why-two-gl-accounts.html

If your user still wants to use a single tax code and GL, follow the below steps:

1) Do not set the Tax code used in VF01 or FB70 as an interim tax code. Just use the final tax code and in FTXP do not update the Target tax code indicator and tax code

2) for VF01, maintain VK11 and for FI Postings, maintain the percentage in FTXP or FV11 depending on your access sequence

You can also explain the business rationale to explain to your user why deferred tax functionality is required for TCS. I have explained the Income Tax Rule for TCS in my earlier post.

Thanks & Regards

Sanil Bhandari

former_member611310
Participant
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Dear Sanil

Thanks for your valuable answer. Should we maintain only final GL against tax code if we choose single GL concept as per below highlighted screenshot.

Can we configure other steps as per TCS configuration document like maintaining threshold and will J_1IG_ACCUMHDR and J_1IG_ACCUMDTL tables update even though if we not follow the 2 GLs concept?

Best Regards,

Ekambaram

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hello ekambaram

You have to configure all other steps. The only difference is that instead of using deferred tax, you will use the final tax code in VK11. However, please make sure, you have explained to the business user the implication of not using deferred tax, especially the fulfilment of 27Q reports, where the data should be shown only to the extent of payments received against invoice and if you do not use deferred tax, you cannot have the same. Make sure, your business colleague understand this.

Regards

Sanil

former_member611310
Participant
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Dear Sanil ji

Thanks for your answer, will the interim(intermediate) GL to be created as P/L or Balanece sheet A/C if our client adopts 2 G/Ls concept?

Best Regards,

Ekambaram

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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It should be balance sheet account since you will be claiming credit or having a liability for the same

former_member611310
Participant
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Hi Sanil ji,

Thank you for your inputs, so both the TDS Interim and TDS final GL accounts will be created as Balance sheet accounts?

Best Regards,

Ekambaram

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hello ekambaram

Both the GL Accounts have to be balance sheet account and have to be set up as defined in step 1 in the below OSS Note

https://launchpad.support.sap.com/#/notes/1800344

Thanks & Regards

Sanil Bhandari

former_member611310
Participant
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Dear Sanil Ji,

Our client confirmed to go with single TCS GL and we configured and assigned the GL and created the tax code. We maintained threshold limit in J_1IG_THLDV. Now we posted FI direct invoice in FB70 and TCS got calculated. How can this happen as there is 50 Lakhs threshold limit and system is calculating on first invoice itself.

In below tables TCS is updating too

Please suggest

Best Regards,

Ekambaram

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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You need to create an implementation of BADI, BADI_J1IG_TCS for accumulation of TCS