Microsoft Dynamics AX Support

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INDIA LOCALIZATION: TDS adjustment entry process

 

https://technet.microsoft.com/en-us/library/jj664585.aspx

 

***[BUSINESS PROCESS] ***

Invoice posted using TDS and adjustments are common

 

 

***[REPRO STEPS GROUP] ***

Test done using INMF demo data

 

Prerequisite setups:

 

Note: All setups are as is available in INMF India demo data

  1. TDS setup

    General Ledger>Setup>Withholding tax>Withholding tax codes

 

Select record “Rent”

 


Click on values


2. Setup withholding tax group from GL > setup > Withholding tax > withholding tax group

Select Withholding tax group: Rent

Tax type: TDS


Click Designer


3. Check Vendor and attach TDS group from AP > common > Vendors > all vendors

Create new Vendor “INMF-000014”

Invoice delivery > Withholding tax > Calculate withholding tax is marked

Invoice delivery > Withholding tax > TDS group >Rent


Tax information > PAN information >Status: available

Tax information > PAN information >Number: Filled in


Save and close the form.

 

Scenario 1: Make an adjustment of TDS as in case you want to reverse only the TDS amount and no reversal of original invoice itself

Transaction flow:

1. Post an General journal from GL > Journal > General journal

Name: GenJrn


Click on Lines

Date: 1/11/2017

Account type: Vendor

Account: INMF-000014

Credit: 5000

Offset Account type: Ledger

Offset account: 600150

Withholding tax > TDS group: Rent

 


Click on Withholding tax button to see withholding tax calculation


Click close

Post the journal and check voucher


Inquiries>Voucher


Click posted Withholding tax


2. Post an TDS adjustment by using Create Withholding tax Journal function from GL > Journal > General journal

Name: GenJrn


Click on Lines


Click Functions>Withholding tax journal



Fill in details as below

Tax group: Rent

Tax Direction :Payable

Vendor : INMF-000014


Click select transaction to select the voucher we want to adjust TDS for


Then click Reference to tax journal


Note that the Voucher ,Default offset account type and Default offset account gets populated by the system


Now enter -5000 in the amount origin field as we want to reverse the effect of TDS alone


Click Calculate tax


Click transfer

The Tds adjustment line gets transferred to the GL journal lines


Post the journal and check voucher


Inquiries>Voucher


We see that the 202102 TDS payable account is getting reversed for 500 Rs correctly

Click posted withholding tax


Step 3: Check Vendor Balance

INMF/Accounts payable/Common/Vendors/All vendors


Click Transactions


We see that the vendor balance is -5000 because we just reversed the TDS amount alone

Step 4: Now run TDS settlement

INMF/General ledger/Periodic/India withholding tax/Withholding tax payment

Fill in details as shown below

 


Now check Audit trail

INMF/General ledger/Inquiries/Audit trail


Check last entry Sales tax reporting>voucher transactions


Posted Withholding tax


 

Notice that that both the original TDS and Reversed TDS amount are accounted and hence net effect is zero which is the expected result

Scenario 2: Make a reversal of original vendor invoice along with TDS itself

Transaction flow:

1. Post an General journal from GL > Journal > General journal

Name: GenJrn


Click on Lines

Date: 1/11/2017

Account type: Vendor

Account: INMF-000014

Credit: 6000

Offset Account type: Ledger

Offset account: 600150

Withholding tax > TDS group: Rent



Click on Withholding tax button to see withholding tax calculation


Click close

Post the journal and check voucher


Inquiries>Voucher


Click posted Withholding tax


Step 2: To reverse the whole invoice along with TDS

INMF/Accounts payable/Common/Vendors/All vendors

Select vendor INMF-000014


Click Transactions

Selct the invoice posted with 6000(Base amount)-600(TDS)=5400 Rs


Click Reverse transaction and say ok



 


Check Voucher


Posted withholding tax


We see that the entire invoice along with TDS is reversed correctly


Step 3: Now run TDS settlement

INMF/General ledger/Periodic/India withholding tax/Withholding tax payment

Fill in details as shown below


Click Ok

Now check Audit trail

INMF/General ledger/Inquiries/Audit trail


Check last entry Sales tax reporting>voucher transactions


Posted Withholding tax


 

Notice that that both the original TDS and Reversed TDS amount are accounted and hence net effect is zero which is the expected result