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TDS is not getting posted to main account or vendor account.

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Posted on by Sachin75

While posting vendor invoice, withholding tax is getting calculated but voucher is not getting posted in TDS GL.

This is leading to vendor/ledger reconciliation.

Please help.

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Dynamics 365 Finance

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Giorgio Bonacorsi 849 on at

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Hello,

The withholding tax is applied during the vendor invoice payment. If you want to recognize the tax on the ledger at invoicing, you have to use a charge to post to a clearing account and set the same account in the withholding tax configuration.

Out of curiosity, can I know which tax normative requires recognizing the tax during invoice posting? I could write an article about it for you.

Thank you,
Giorgio

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Sathish Kumar Palan... 380 on at

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Hi

As per India Localisation the withholding tax should post at vendor invoice journal , if no voucher has generated means , this could be following reasons

PAN not available or status incorrect for the supplier
Missing TDS GL account in withholding posting profile
Incorrect tax direction or type in withholding tax group

Please validate all above and update the status.

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CA Neeraj Kumar 4,990 on at

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Hi Sachin,

As you mentioned, there is difference coming in Ledger and Subledger, it means in vendor transactions, the impact of TDS amount is reflecting. Right?

If this is correct assumption, then you need to pass a correction entry and parallely search for root-cause.

Correction entry would be:

Vendor GL (that is 16101000 in your case) Debit. [need to allow manual entry on Main account setup]

TDS payable Credit

Regards,

Neeraj Kumar

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BillurSamdancioglu 19,703 Most Valuable Professional on at

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Witholding tax is calculated when it is settled with a payment.

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