Deduct Withholding Tax from AR Credit Memo ( Service)

[tgjaneesh]

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

[dinesh-pn]

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