Withholding Debit Entry to Vendor

[former_member502340]

Hi Team,

My customer have requirement to post debit entries to Vendor account for TDS.

Can it be possible to post vendor twice in same invoice.

Expecting entry -

Cr Vendor 1000

Cr TDS 100

DR GR/IR 1000

DR Vendor 100

Regards,

Gopal

[TammyPowlas]

What is TDS? What are the real accounting requirements?

[former_member502340]

Hi Tammy Powlas,

Here TDS called as tax deducted at source. This is related with withholding tax.

Let say 10% amount deducted for withholding then below are the requires accounting entries at MIRO transaction

Cr Vendor 1000

Cr Withholding Tax 100

Dr Vendor 100

Dr GR/IR 1000

[former_member513101]

Hi Gopal,

If u sum up the vendor line items you still have balance 900. Can i know why your client want such posting?

Thanks

[former_member502340]

Hi KK Lam,

Thanks for your replied. Here client want to check full invoice amount in FBL1N.

We are applying Withholding tax on net amount.

In MIRO

Invoice Amt - Dr 47250

In FBL1N

Vendor Cr 46800

Withholding tax Cr 450-

So basically Entry should be like GR/IR Dr – 47250

Cr Vendor 47250

Dr Vendor 450

Cr Withholding Tax - 450

[former_member513101]

Hi Gopal,

If for reporting purpose with example above you want to view entries in FBL1N (Vendor Cr 46800 and Withholding tax Cr 450- )

I think you can create substitution rule user exit to substitute the vendor code to WHT line item. Then you can view the report in FBL3N or FAGLL03 by filtering out vendor recon account and WHT account. With the sorting of vendor code and document you will see full amount of the invoice.

Thanks.