TCS on vendor invoicing sec 206(C) wef 01/10/2020

[kshama4]

Dear Experts

I wish to record TCS Receivable (Asset) i.e (Tax collected by the supplier on purchase) in SAP ByDesign. I get the error in supplier invoicing as below:

Posting of the invoice not possible due to error in financial accounting; Account determination missing for account determination group TCS Receivable. Choose the account determination for General Ledger. To define the account for the chart of accounts 'JCOA' go to tab 'Other Assets'. Enter a general ledger account for 'TCS Receivable'.

I was suggested to add a separate line item for TCS in Supplier invoices. (Like free text item as it is an expense) and select as nontaxable items, so that Tax return doesn't have any impact. I don't know why it is considered as an expense. I was doing it as TCS Receivable (Asset).

Please correct me if understood it completely wrong. How should I record tax collected at source by our vendors in SAP ByD?

Regards,

Kshama

[annapurna_vunnam2 · Accepted solution]

Hi Kshama,

We are going to provide TCS tax codes for Supplier invoicing on 19th Oct in all systems. For the time being, these need to posted manually adding separate line in supplier invoice and then manual Journal entry to move from expense to TCS receivables.

Best Regards,

Annapurna