Finance | Enable Prior FY TDS journal tagging in TDS Reversal Journal

Finance --> TDS Reversal Journal

Requirement: Allow tagging of TDS Journals for financial years other than the one in which the entry is made.

Use Case: A Purchase Invoice is issued on March 30, 2024 (FY 23-24), with TDS deducted and a corresponding TDS journal processed on the same day. Subsequently, on April 2, 2024, a debit note is raised against the same invoice. This requires a reversal of the TDS amount through a TDS Reversal Journal.

Current Functionality: When passing the TDS Reversal Journal, it's mandatory to tag a TDS journal. However, in the given use case, the TDS Reversal Journal pertains to FY 24-25, while tagging a TDS journal from a prior fiscal year is not permitted.

Problem Statement: Due to restrictions on tagging a TDS journal from a previous fiscal year, users are unable to process a TDS Reversal Journal for the debit note.

Workaround Solution: The client can utilize an Inter-Party journal, debiting the TDS agent and crediting the vendor. Although this may present process or presentation challenges, the accounting entry would be accurate.

  • Product Team
  • Apr 23 2024
  • Likely to implement
  • Attach files
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