common vendor for statutory liability

[Former Member]

There is a company which is into manufacturing of vitrified tiles and ceramic tiles. All liabilities for statutory payments (TDS, Sales Tax, etc.) are captured in GL accounts. For payments, manual cheques need to be prepared as there are no vendors created for the same. They want to eliminate manual creation of cheques and automate the payments to statutory authorities. They also would like to have only one vendor for all statutory payments.

What solution can be provided to eliminate manual cheques and how one vendor can be used for paying off the statutory liabilities?

[Former Member]

Dear Devdatt

Normally TDS & VAT are two different statutory authorities. We can't make the payment from one vendor.

Create 2 different GL accounts for TDS & VAT and select Vendor recon account and run the APP in test environment.

If it's success try it in live.

Regards

Sridhara Rao D

[former_member200426]

Hi Dev,

you mean your client want to maintain all statutory liabilities to one vendor so, for that purpose you have to do both the configurations i.e tax on purchases as well as Withholding tax for the same vendor. Then to activate tax on purchases go to FS00 in control data tab assign input tax category and to activate WHT go to Vendor master data (eg Fk02, XK02) then tick the check box of WHT and assign WHT type, WHT code, Recipient type and tick the check box of liable.

Regards,

Vinod