Amendment to Section 206C(IH) TCS-G/L accounts

[aamna]

Hi Guys,

I have implemented TCS configuration according to SAP recommended notes,

but i am having doubt of how to create G/L account for TCS intermediate, TCS final

TCS intermediate-it should be P&L account or balance sheet account

for customer it is liability and for vendor it is asset.

TCS final-it should be P&L account or balance sheet account

for customer it is liability and for vendor it is asset.

SAP recommended follow deferred tax method ,that is is the reason I am getting confused how to create G/L accounts.

Interim or Intermediate G/L: To which TCS will be posted when you post billing doc/FB70 invoice

cr customer

dr cogs

dr cgst

dr sgst

dr tcs intermediate(it should be balance sheet or P/L account)

Actual or Final G/L: To which TCS will be transferred on running RFUMSV50 after payment receipt

cr tcs intermediate

dr tcs final(it should be Balance Sheet or P/L account)

[sanilbhandari · Accepted solution]

Refer the below OSS Note for set up of GL Accounts for deferred tax.

https://launchpad.support.sap.com/#/notes/1859099

Ideally both intermediate and final account should be balance sheet account, since you will be taking credit or paying liability for TCS to CBDT. These GL should be clubbed under current asset or current liability of the balance sheet

Thanks & regards

Sanil Bhandari

[aamna · Accepted solution]

Thank u for the suggestion.