SAP Knowledge Base Article - Public

1961025 - How to Enter Withholding Tax Deduction by Customer


This document describes how to capture the tax deducted at source (TDS) or withholding tax deducted by the customer when entering an incoming payment.


 1.  Go to the Receivables work center.
 2.  Click on Customers Accounts.
 3.  Select option All Customers in the Show field, type your desired customer ID in the Find field and click Go button.
 4.  Select your desire Customer and Click on View button.
 5.  Go to the Trade Receivables tab.
 6.  Click on  New Charge / Credit button and select the following parameters:

   a. Charge/Credit : Customer Credit 
   b. In the G/L field: Tax G/L account (for TDS deduction) 
   c. In the Net Amount field: TDS amount (deducted by the Customer)

 7.  Click on Post button.
 9.  It will take you to the Trade Receivables -tab , click on the Refresh icon.
 9.  You can see thet document for Customer Charge under the document type Other Payable.



KBA , SRD-HR-TLM , Time and Labour Management , How To


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