TDS Information

[former_member786285]

Hi

In my client company we have uploaded vendors masters through LSMW  at that time we did not give TDS information(TDS codes and Type) in the master record

Till now we have not uploaded vendor balances from legacy to SAP

Now my client are giving onlynvendor final balances (i.e after deduction of TDS in legacy system)

Now please suggest on below points,

1) before uploading vendor final balances we have to give TDS information (TDS codes and Type) in the vendor master record or not

2) without vendors final balances upload in the SAP they are making payments in F-53 is it correct or not?

3) while entering payments in F-53 they want to deduct TDS,  without vendor invoice upload they are making payment in F-53

    If i will give TDS information in the vendor master is there any effect while uploading vendor final balances

Please suggest me

Regards

Srini

[pankaj_pandey2 · Accepted solution]

Hi Srini,

In case of TDS, it is advisable to upload TDS code only after balance upload. Client will always provide you the net off TDs balance. He will also proivde the TDS liablity which you will set off through G/L entry.

Paymen tof Vendor item will be done through F-53.

Once the Balances have been uploaded, you will upload the TDs codes in Vendor Master. After uploading the vendor Master run a program RFWT0010 for precautionary basis.

Hope this would help you.

Regards

Pankaj Pandey

[former_member786285 · Accepted solution]

Hi pankaj

Thanks For Reply

can you please tell me for what purpose i need to run this program RFWT0010.

without run the program also we can do the transactions am i right?

please suggest on below point also

1) I have created vendor invoice at that i have not given any TDS information in the master record

But at the time of payment client was asking TDS deduction then i have given TDS information in the vendor master for Payment posting TDS code but it was not calculating TDS amount

For this purpose i have cancelled invoice then i have created new invoice after that it is calculating properly

Do you have any idea on this

[pankaj_pandey2 · Accepted solution]

Hi Srini,

The report updates the TDS code in document posted against the vendor , where the TDS codes are maintained after processing of these documents.

System will not allowing to make payment unless this report will execute, as the TDS related reocrds are updated in WITH _item Table.

For your secod  querry, You can maintain the TDS code and then run this report , If you have maintain both the TDs code in master , report will update both codes there in document. Go to FB02 and  remove invoice code and save.

Then process transction through F-53 , system will dedcut TDS.

Regards

Pankaj Pandey

[Former Member]

Hi Srini,

1. In the cut over activities, you first need to upload vendor master. There are two ways it can be uploaded.

     - 1) Upload complete Vendor master even with witholding tax data and then upload Vendor balances. In this case, while uploading vendor balances, you can create a "ZZ" posting key and in that posting key you need to suppress all fields related to witholding tax. This posting key will only be used at the time of cut over and will not be used later on

     - 2) Second approach would be upload vendor master without Witholding tax data, then upload vendor balances and then upload Vendor master witholding tax data

2. Even if they are making payment without creating/clearing off liability, the entry would be Vendor -Dr. To bank A/c..cr.. The subsequent clearing of Vendor is to be done in T-Code F-44

3. You can deduct TDS at the time of Payment also.. You just need to have correct TDS Tax type and code for Payment in vendor master, but you said that balances are net of TDS, so if the payment is related to old Invoices, there is no need to deduct TDS again.. it will amount to duplication. But if they are fresh payments as advances, then use F-48 for Down payment and TDS can be deducted

You need to sequence all the activities in the system..

1. Upload vendor Master with TDS

2. Upload Vendor Legacy balances with ZZ posting Key

3. Even if Payments are made in SAP, Clear off Vendor DR. and CR. after uplaoding Vendor Legacy balances

4. If fresh payments are being made and TDS need to be deducted, then you need to update TDS info in the master (Note in this case, you can use ZZ posting key to upload vendor balances where you do not want to give effect of TDS)

Hope this helps.

Regards,

Kavita

[Former Member]

hi

          i have some knowledge about TDS right now i am sharing you. tds is a separate tool in accounts payable, we have to do the configuration on tds while creating a  vendor master we need to mention the tds on vendor payment terms.it will affect after terms   of invoce and payment.so we can upload the tds separetly and transfer to the sap.

[former_member786285]

HI Kavita

Thanks For reply

For above points clarified

My client was asking some times TDS should deduct at the time of invoice creation for some times at the time of payment

If i mention two types of TDS codes in the vendor master then it is calculating two times

My client was asking whichever is earlier this TDS should be deduct is it possible?

Regards

Srini

[Former Member]

Hi Srini,

As per Indian Laws, TDS is to be deducted at the time of Invoice or Payment whichever is earlier and this is very much possible in SAP using extended witholding Tax.

In Vendor master, you need to maintain, the TDS tax type and code for both Payment and Invoice. But please remember you should maintain it as follows, else it will deduct two times, both at the time of Invoice and Payment.

Tax Type          Tac Code

A1(Invoice)          A1(Invoice)

A2(Payment)       BLANK

With this setting, it wont deduct twice.

Regards,

Kavita

[former_member786285]

Thanks Kavitha

The problem was resolved as per your suggestion but at that time of making payment advance or without invoice against payment at that time we have to select tax code manually,

Thanks & Regards

Srini

[Former Member]

Hi Srini,

Client is providing vendors balances to be uploaded net off TDS. No issue.

1. Update master data with EWT codes and type. Do not activate EWT. Once upload iscompeted , activate.

2. No tadvisable.If they make payment before upload, they need to clear open items
afterwords.

3. Once net balance uploded why there is need to deduct TDS ?

4. Even if they want to make payment before upload, the payments is to be mae as down payment and balances are to be upladed gross value ( Without deducting TDS in legacy ).

I hope it will clear your points.

Regards

Dipak