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Deduct Withholding Tax from AR Credit Memo ( Service)

Hi Experts,

Can we deduct Withholding Tax from AR Credit Memo ? . One of my client wants to deduct TDS while paying commission to his customer ( Offered for sales above particular slab) and he wants to shows that entry in the customer ledger, so we can't create him as vendor.Therefore commission booking is treated as fresh AR Credit Memo so that it will reflect in his Ledger. The only issue in this case is deducting TDS.

Please advice

Thanks

Janeesh T G

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  • Posted on Feb 11, 2019 at 10:58 AM

    Dear Janeesh,

    Unfortunately The TDS will not deduct from AR Credit Memo screen. I would suggest one workaround in this case.

    Create Two non inventory Items :

    Item A : Commission_Item

    Item B : TDS_Item

    Assign the Revenue account for this both items in GL Account Determination :

    Item A : Revenue Account - Commission Account

    Item B : Revenue Account - TDS Account

    now Post the AR Credit Memo

    and Calculate the Total TDS Amount manually and mention in the item B or use FMS functionality.

    Thanks

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