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Withholding tax adjustment by debiting taxes

Hi ,

When we make a payment (3 rd entry i mention below) through F110 withholding tax deducted at the time of advance payment is getting debited along with payment posting. Can anyone let me know how this is functioning? We are using ECC 6

For example:

Advance payment: (credit tax)

1 st entry) Vendor a/c dr 1000

To, Bank a/c 900

To, TDS a/c 50

To Cess a/c 50.

2 nd entry)Invoice posting:

Gr/Ir a/c Dr 2000

To vendor 1800

To, TDS a/c 100

To Cess a/c 100

3 rd entry)Payment posting through F110.( tax debited here for the same amount which was credit at advance)

Vendor a/c Dr 1800

TDS a/c Dr 50

Cess a/c Dr 50

To Vendor a/c 1000

To bank a/c 900

I jsut wanted to know how taxes are debited in the 3rd entry.where do we do this settings.

TDS a/c Dr 50

Cess a/c Dr 50

Former Member
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