Multple Services Vendors to have Single Vendor Code and also Multiple TaxCd

[former_member210146]

Hey SAP Gurus,

Please help me with my problem.

Background:

1. Currently on SAP 4.7 there are close to 10,000 Vendors. Many of these Vendors are acting as more than ONE Goods / Services Provider.

2. Few Services rendered by Vendors are subject to Withholding Tax (Tax Deduction at Source).

3. For the Withholding Tax we are using Std SAP provided functionalities and hence for each Service, attracting a separate TDS Provision, we have set up a dedicated Vendor Code. All Vendor codes are linked to one Payee so that the Automatic Payment Run issues the Cheques to ONE Vendor code only.

4. The Vendors masters creation is an ongoing activity. So, say for ex, in 2008 one Vendor was providing X service, started providing Y Service in 2009 leading to creation of dedicated Vendor code. The same Vendor is now providing 3rd service attracting a different provision of With. tax - Hence in 2010 for the "same" Vendor / Party, a 3rd Vendor Master Record with different Vendor Code (system generated internal numbering) is created.

Problem:

A. Our client wants to have ONE single Vendor code with MULTIPLE Roles assignment. I am not very sure if we can have it done in SAP by creating some ROLES.

B. The MM module is not live here. This means, the PO related functionalities (if possible) cannot be used.

C. There are multiple systems from where the Vendor Liability Line item is generated and it comes to SAP for GL Posting and Final payout (Thru Cheque or Electronic Fund Transfer etc.).

D. In our Indian Scenario, each Section or Provision, leads to set up of 4 TDS Tax Codes: Basic, Surcharge, Cess 1 and Cess 2.

Due to this requirement, we have configured the said respective 4 Tax Codes per section.

E. If a Vendor is providing 4 different services attracting 4 different Sections of TDS, this will lead to having 4 X 4 = 16 Tax Codes for each such Vendor.

F. The problem would become more complex on receiving the Transactional Data File (thru Interface) from various Applications generating the Liability Line Item for Vendor.

Revisiting the Requirement:

Have One Vendor Code per Vendor or Party.

Your help would be highly appreciated.

Many Thanks

SAP Consultant

[anjireddy_appireddy]

Hi

To overcome this problem you have two options.

1. you can create only one vendor code.For the withholding tax purpose you can have multiple tax code options.At the time of giving input you can select withholding tax code from the drop down list.why dont you use that option?

2. Here you can use the Head office concept.

first you create vendor(ex: xyz).

after that you can create one more vendor code(for same vendor for different service) and assign first vendor(main vendor) in the head office field in the account information tab under recon account field.

what ever the posting are doing for the different services automatically routed to main vendor(Ex: xyz)