Tax Collected at source with advance receipt

Define TCS Regime

Give the receipt class for advance receipt, Batch source for TCS debit memo and TCS credit memo

Give the taxes that are applicable for TCS with interim liability and liability account for each of the taxes

Define the inventory organization for which TCS is applicable

Classify the item as scrap

Check whether TCS tax authority is already defined as Supplier in Payables

Check whether your item Scrap is attached to any TCS tax category

Define Customer Additional information for the Customer and select any option from LOV for TCS Customer Type.

Enter a Transaction in the Localized window Selecting the inventory organization for which TCS taxes has to be calculated

Click open and enter the details of the invoice

Complete the invoice after applying the TCS taxes

Check the break up of the taxes Enter an Advance Receipt

Cash A/C Dr Receivables A/C cr Go to tools open IL cash receipts window

Select your inventory organization, item and tax category Click taxes

Click confirm once the correct taxes are applied

Once the confirm button is pressed it gets disabled Run the autoinvoice program for TCS debit memo(only in dev instance this works as I have created a line transaction flexfield for TCS debit memo dont try it in production) Query the debit memo only in transactions window not localizaed window

Apply the advance receipt to the original invoice

Run autoinvoice master program for TCS credit memo( do it only in dev instance, line transaction flexfield should be created before running), credit memo is created

Period end>settlement Perform the settlement process(There were some TCS invoices already existing thats the reason its showing a higher amount)

Press the process button

Processing will happen for sysdate-1, once you press process it creates a payables invoice in AP on the tax authority The invoice may get stuck as the payment method is not given if you are not defining a default payment method while defining the tax authority supplier Your TCS invoice is generated

Validate,approve it and pay it

Do create accounting if required

Entering an advance receipt Cash A/c Dr Receivables A/c Cr Entering Original Invoice Receivables A/c Dr Revenue A/c Cr Tax Cr 11020(001.000.000.00000.16000010.0000.000) 10000(001.000.000.00000.26060646.0000.000)
1000(001.000.000.00000.14080837.0000.000)

11020(001.000.000.00000.13052874.0000.000) 11020(001.000.000.00000.16000010.0000.000)

Tax Cr Tax Cr
When a debit memo is created Receivables Dr Revenue Cr When a credit memo is created Revenue Dr Receivables Cr When a payables invoice is generated Item Expense Dr Item Expense Dr Item Expense Dr Liability Cr Liability Cr Liability Cr When a Payment is done Liability Dr Cash Clearing Cr When reconciled Cash Clearing Dr Cash

10(001.000.000.00000.26091665.0000.000) 10(001.000.000.00000.11011724.0000.000)

1020(001.000.000.00000.64050999.0000.000) 1020(001.000.000.00000.23000546.0000.000)

1020(001.000.000.00000.23000546.0000.000) 1020(001.000.000.00000.64050999.0000.000)

1020(001.000.000.00000.23000546.0000.000 001.000.000.00000.22041545.0000.000 001.000.000.00000.26010554.0000.000) 1020 (001.000.000.00000.26060613.0000.000 001.000.000.00000.26060613.0000.000 001.000.000.00000.26060613.0000.000)

1020 (001.000.000.00000.26060613.0000.000) 1020 (001.000.000.00000.13052881.0000.000)

1020 (001.000.000.00000.13052881.0000.000) 1020 (001.000.000.00000.13052874.0000.000)