Microsoft Dynamics AX (Archived)

TDS gets removed /disappears when Vendor Invoice booked through Invoice Journal is Posted

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Posted on by Chetan Dedhia

Pre requisite:

1. TDS charge is associated to vendor in the vendor master

2. Purchase Invoice journal created is multi line

Steps:

1. In AX 2012, vendor invoice is created using Accounts Payable > Invoice Journal

2. Invoice journal is for same vendor having multi line for services rendered from vendor

3. Default TDS group associated is displayed in the form, before posting the voucher

4. Once the voucher is posted, TDS gets removed for certain lines and tds amount is not posted for it.

Regards,

Chetan Dedhia.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

What is TDS and how did you set it up?

Can you share some illustrative screenprints?

Many thanks and best regards,

Ludwig

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André Arnaud de Cal... 304,251 Super User 2026 Season 1 on at

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Hi Chetan,

Can you explain the abbreviation TDS? Can you also provide some more information on which exact forms and what values had been setup? Are you aware of possible customizations in this area?

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Chetan Dedhia 73 on at

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TDS is Withholding tax (Tax deducted at source) against the vendor invoice raised.

Attaching image 1 (Setup of Withholding tax), Image 2 (Formula for TDS calculation), Image 3 (TDS not calculated after posting), Image 4 (TDS group associated to the Vendor at the voucher level)

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Withholding tax should be applied at the time the invoice is paid.

You usually specify the withholding tax group at the vendor master and that group is then inherited into the payment journal.

Can you test whether the withholding tax is posted correctly when you make the payment?

Another thing:

What is the second form about? I have not seen this in a standard application. Is this something that has been modified for you or is this a country specific feature? If so, what for country?

Best regards,

Ludwig

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Chetan Dedhia 73 on at

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The Second form is the designer form for the Withholding Tax group wherein the base amount is defined on which the calculation is to be done.

This is India specific, where in withholding tax is to be calculated at the time of invoice booking or vendor advance payment whichever is earlier.

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Ludwig Reinhard Microsoft Employee on at

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Hello Chetan,

I am not an Indian tax expert and can thus only refer you the following MS docs site

docs.microsoft.com/.../ind-set-up-withholding-tax-components-for-tds-tax-types

Hope this helps.

Best regards,

Ludwig

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SouravDam 11,730 on at

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Hi Chetan Dedhia,

Is there any threshold limit set in withholding tax components and whether that is creating any impact?

Also, can you check if patch upgrade is solving this issue or not?

Best regards,
Sourav Dam

Please take time to click 'Yes' against the answers that help you guide in right direction to help other community members.

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Chetan Dedhia 73 on at

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Threshold limit is out of picture here since all amounts cross the limit as seen in the screenshot.

Patch upgrade? Which? Any reference?

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SouravDam 11,730 on at

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Hi Chetan Dedhia,

As I can see in the highlighted line in your previous post; the amount in voucher (invoice - RLY/1213) is showing including withholding tax (98694.00 + 11843.28) = 110537.28

"4. Once the voucher is posted, TDS gets removed for certain lines and tds amount is not posted for it." -- In context with this, can you please re-check if TDS group is selected in every line of that journal?

Unfortunately I don't have any patch upgrade reference. In this forum, we faced a case before in India localization where almost same issue popped up and this was fixed by a patch upgrade (as per the update we received from the person who created that post).

Let's check if we can identify that post here; so to share with you.

Best regards,
Sourav Dam

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Chetan Dedhia 73 on at

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Hi Sourav,

Yes, TDS group is selected for all the lines in the journal. The user is clicking 'Apply' button in the Withholding tax > Adjustment Screen for each line.

Installed the hotfix KB3206745, which is closer but not the exact issue that is observed. It also did not resolve our issue.

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