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TDS Deduction for Pay-to Vendor

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Posted on by CU21100733-1

Hello,

if We are raising an invoice for Vendor A but processing the payment for Vendor B using Pay-to, the TDS Should be deducted for Vendor B, as that is the vendor receiving the payment but while processing above entry TDS is getting deducted for vendor A and invoice payment amount is reflecting for vendor B.

Any suggestion how to handle this?

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Dynamics 365 Business Central

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Vinayak Vishnu Sagv... 212 on at

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Hi Friend,

TDS Configuration to be follow up for vendor.

TDS configuration and invoicing should be done for Vendor A

TDS configuration and invoicing should be done for Vendor B

Only precautions is only don’t process the payment through purchase invoice.
For that purpose create payment journal separately.
Then process the payment for vendor B
Regular steps select the Vendor B and based on setup of TDS configuration system will calculate the TDS amount and then apply the payment journal entries.
Post the payment journal.
Then you can add reference for Vendor A Invoice.
Once process above steps. Try to extract the standard TDS report TDS properly deducted for vendor B as per your example.
Please let us know if any more detail you would like to know

Regards,

Vinayak Sagvekar

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CU21100733-1 8 on at

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@Vinayak Vishnu Sagvekar

Solution provided by you is not clear also i would like to mention i am using standard Pay-to functionality of Business Central.

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Khushbu Rajvi. 20,363 Super User 2025 Season 2 on at

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Hope it provide some hints: https://learn.microsoft.com/en-us/dynamics365/business-central/localfunctionality/india/tds-transactions

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CU21100733-1 8 on at

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@Khushbu Rajvi.
Below link doesn't contain anything related to above mentioned query

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