Withholding Tax on payment using T.Code F-02

[Former Member]

Hi all

I am trying to make an On Account payment to the Vendor using T.Code F-02. However, when I use the Posting Key 25, the system does not deduct the TDS on payment. Please lemme know if this is the standard system behaviour or am I going wrong somewhere?

Cheers

Hrishi

[durgasankar_innamuri]

Hi,

When u making a advance payment to vendor the accounting entry is

Advance payment Dr

To: Vendor

You are using the posting key 25 which means vendor debit. it is not meant for down payment only for outgoing payment.

Against which kind of service you are making payment because all tax codes having minimum amount also. please see that once also.

In the vendor master record are choose liabile check box. Just run once RTWT0010

Hope this is clear, If yes assign points

Regards,

Sankar

[Former Member]

HI,

Check following customization

wht setting for payment posting

taxcode assigned to vendor

filed staus setting allowing tds entry

Warm Regards

[Former Member]

Hi,

Check this system message, this is SAP functionality.

The selected transaction is not a payment transaction, even though the

posting key used is relevant for payments. The withholding tax is not

processed, even though you are posting to a vendor subject to

withholding tax.

Check whether you can use another posting key or another payment

transaction (for example, FB05).

Thanks

VK