Deduction of TCS on Scrap

[Former Member]

Dear Experts,

The requirement of my client is deduct TCS on scrap sales, however SD is not into scope thereby there would be FI Customer invoice(FB70) to be created.

As per SAP note 1168591, SD condition types are required to be assigned to withholding tax type but as there is no SD conditions in our scenario, how to go ahead.

The FI entry which is getting posted after assigning withholding tax code in Customer masters is

Customer A/c Dr

Withholding Tax A/c Dr

To Scrap Revenue

However TCS needs to be deducted from the invoice value.

Seeking for your valuable reply!

[shimul1]

Hi , Can you please let me know how we can post FB70 with scrap sale. Currently the TCS payable is coming as debit entry , however we need to make this as credit entry. please suggest what can be done.

[Former Member]

Hi,

Can you please let me know what is the configuration settings you have made for TCS collection in customer invoice via FB70?

I have followed the document attached in the SAP Note: 1168591, i am unable to generate accounting document with TCS.

Please guide me.

Regards

Kiran Yelamarthi

[Former Member]

hi

Tax collected at Source:

Configurations required u2013

1. Withholding tax key is maintained for TCS as below u2013

2. Withholding tax types are maintained for TCS on base, surcharge, ECS and SECess as below u2013

Since this withholding tax is configured with Base amount as Modified net amount, the base for the withholding tax will be the net amount (i.e., not inclusive of the tax condition values.) In case you wish to add some tax condition values to the base for TCS calculation, you will need to maintain the posting key assigned to the tax condition type in the pricing procedure along with the combination of the withholding tax code assigned to the TCS related condition type at the following location:

SPRO -> Financial Accounting (New) -> Financial Accounting Global

Settings (New) -> Extended Withholding Tax -> Withholding Tax Base

Amount -> Define processing key for Modified Net Amount

By doing so, the condition values of the tax condition types assigned for these processing keys will also be included in the base for the withholding tax calculation.

3. Create the access sequence for withholding tax for TCS in SD u2013

Copy the existing access sequence J1AW and create the new access sequence J1IW with the following accesses:

4. Create condition types corresponding to Tax collected at Source in SD u2013

5. Withholding tax types must be assigned to condition types maintained in SD for TCS u2013

6. Define Withholding tax codes for TCS as given below u2013

Set the withholding tax rate as per requirement here.

7. Since posting will happen from SD as well as from FI with the TDS code, off-setting concept posting is used for the TCS tax types. The GL accounts are assigned as below u2013

Note:

Same G/L account should be maintained for transaction key WIT based

tax line item and the SD-FI condition based tax line item.

A different G/L account has to be maintained for the transaction key OFF

based line item.

8. Pricing procedure changes. The condition types corresponding to TCS will have to be adding to the pricing procedure as shown below u2013

The condition types for TCS (JTCS, JTEC AND JTSE) are to be defined as statistical in the pricing procedure. The system calculates the values in SD but doesnu2019t post them directly from SD. Posting would take place with the condition type assignment to TCS withholding tax types. (as configured earlier in step 5)

9. We will need to define a new condition type and add this to the pricing procedure to post to the FI. This condition type will be manual and can be manually filled at the time of creation of sales order. This can also be copied from the statistical TCS condition types in the pricing procedure.

For example, the screen shot below shows how to create the condition type corresponding to TCS which would be posted to FI:

This condition type JWTS will have to be added to the pricing procedure. This is not maintained as statistical and has a corresponding accounting key u2013

Similar condition types will have to be created and added to the pricing procedure for ECS on TCS and SECess on TCS.

10. The accounts for withholding tax to be paid must be maintained for the TCS withholding tax type and TCS withholding tax code combination as given below -

with

regards

robin s prasad