Views:

Applies to Product – Dynamics 365 Business Central


What’s happening?
The issue at hand is that the TDS (Tax Deducted at Source) rate is being calculated incorrectly in the purchase invoice, particularly in scenarios involving contract thresholds and partial shipments.


Reason:
The underlying cause of this is related to the threshold limit for TDS calculation based on the contract terms not being properly applied. Specifically, for TDS to be calculated correctly, the order quantity must match the shipped quantity and invoiced quantity. Additionally, if the contract value is not specified, the TDS may calculate correctly, but it may not adhere to the expected behavior based on the system's design.


Resolution:
For TDS calculation issues related to contract thresholds:

  1. Ensure that the order quantity is the same as the shipped quantity and invoiced quantity to adhere to the system's requirements.
  2. If the TDS is to be calculated only on the shipped quantity, verify that the order quantity reflects this.
If any of the above information is not available or if the issue remains unresolved, please refer to the support team for further assistance.