SAP TDS Advance process

[Jag]

Hi All,

My client doesn't want to use the standard process for Advance TDS Process like F-48, F-54 and F-44 Etc., Can any one worked on the this kind of scenario. If yes can you please provide me the solution. I know if we deviating from standard will be the implications in TDS Process. Can you please let me know if we follow the below options.

Option 1

1. Client want to use FB01 for advance posting for TDS Transactions.Manually entering the TDS Amount using posting key combination with Advance TDS Tax code. Is there any impact on the quarterly returns/challan printing???

Option 2

1.  For advances also TDS Tax code want to create as Invoice tax code. If it is the case where will be implications while generating the TDS Challana and quarterly return form26q ??

1. FB01

Dr) Prepaid Expense (GL account) 5000

Cr) AP (w/ Vendor code) 4500

Cr) TDS payable 500   TDS code 1 (Advance TDS Code)

2. Vendor payment - FB05

Dr) AP (w/ Vendor code)    4500

Cr) Bank                         4500

3. Expense - FB60

Dr) Expense 8000

Cr) AP (w/ Vendor code) 7200 TDS code 2 (Invoice TDS Code)

Cr) TDS payable 800

4. Reverse of first transaction (FB01/FB08)

Dr) AP (w/ Vendor code) 4500 TDS code 1

Dr) TDS payable 500

Cr) Prepaid Expense (GL account) 5000

5. Final payment

Dr) AP (w/ Vendor code)    2700

Cr) Bank                         2700

6. Remittance challan - J1INCHLN

Dr) TDS payable                 800

Cr) Bank                          800

Operational wise the above process complicate, but client doesn't want use the standard process. Please let me know the what will be the implications if we follow the above options in case of quarterly return filling and reports. Is the quarterly returns will contain the TDS Advance amount information as well?

Thanks,

jagadeesh.

Thanks in Advance,

Regards,

Jagadeesh.

[Former Member]

Hi,

As you know that TDS GL account automatically trigger at the time of invoice posting from the TDS customization.

As per your process system won’t find the TDS manual postings in J1INCHLN, the same scenario I have worked for one of my previous clients. Only the automatic TDS GL postings will appear in the J1INCHLN.

If your client don’t want the TDS certificate printings then go for your process, if your client wants the J1INCHLN clearing and TDS certificate then you have to follow the standard process.

Please let me know if you need any further help.

Regards,

Ravi

[Jag]

Thanks ravi for your reply.

Invoice posting is doing FB60 only (step3), no problem with J1INCHLN, getting updated no problem about that. I am worrying about more advances case how system will derive the quarterly return filling process and TDS Returns. Is the TDS Advances will update the Form26 while running J1INQEFILE?

If you have any idea on Option 2, can we create new tax code under invoice tax code for advance postings (Step1) because usually FB60 if TDS Advance  payment tax code it wont calculate.

Thanks,

Jagadeesh.

[Former Member]

Hi,

Do you want to use payment tax code in FB60 invoice posting?

If yes, you can create a new payment tax code as invoice tax code and you can use.

Regards,

Ravi

[Jag]

Is the TDS Advances will show any report or quarterly reports? I would like to know where it will get impacted if we are not using the standard process. If any legal changes in the TDS's will SAP support if we deviated?

Thanks,

Jagadeesh.

[Former Member]

Hi,

Please use the report S_P00_07000134 for WHT details.

As per my understanding, you can design the system as per client requirement if the values are flowing accurately. if the requirement is viable we can contact SAP  with out any Z developments.

Wait for other forum members inputs.

Regards,

Ravi