For Example: When we create a Purchase order for 30,000 along with TDS group (EX Rent) and when we apply prepayment of 5000(in prepayment TDS is deducted ). Now while booking the final invoice TDS amount should have been 25,000 as per the above example as TDS on 5000 is already deducted at prepayment.
Comments
Example scenario that has to work :
PO value 10000, vendor - VEND001, default TDS group "RENT" having only one tax code TC2%
Prepayment invoice 1 - 2000, TDS Group RENT - TDS amount 40
Final invoice - INR 10000
Include / settle Prepayment invoice 1 - INR 2000
In the final invoice, TDS group updated is "CONTRACT" which has 2 tax codes TC2% and BOCW2%
Even when TDS group is changed, since the tax code TC2% has a prepayment, base amount for TDS calculation should be 8000. Instead system is picking base amount as 10000 only, since the TDS group has changed.
This is wrong behaviour and does not cater to normal business scenario. Hence should be corrected.
Category: Accounts Payable