In our company, we create normal purchase order with subcontracting flag 'L' in Item category for service items.In short , we are not creating service PO, only goods POs are created.
As per Income Tax Provision, we have to deduct tds when we are crediting to vendor or suspense . When we do a GR(MIGO), GRIR Clearing Account is credited. Subsequently when we do an Invoice (MIRO), tds is deducted accordingly.
For pending GRIR Open Items ( Good Receipt happened without invoice receipt), we are not able to deduct in the month of GR. So there is a delay in deducting TDS, which will result in Interest .
We came to know about t-code J1INPR which will create Provision for Tax for Services rendered.Normal Purchase order cannot be used in this t-code.
Kindly let us know whether there is any provision for executing t-code j1inpr for pending open items for normal purchase orders instead of Service POs.