Dear Experts,
I have a query on Tax Collected at Source(TCS) from FI side.
1. I have configured TCS tax code similar to with holding tax code and set posting indicator 3 (Offsetting entry to G/L account) because TCS payable shall be deducted from offsetting GL not from customer
2. Defined 1 GL account in transaction "WIT"(Extended withholding tax) as well as transaction "OFF"(Offsetting entry with deduction) Same GL account.
When we post transaction the entry is as below.
Customer A/c DR Rs. 100
Scrap Sales A/c CR Rs. 100
TCS Payable A/c DR Rs. 1
TCS Payable A/c CR Rs. 1
But actual entry should be as below.
Customer A/c DR Rs. 100
Scrap Sales A/c CR Rs. 99 (TCS shall be deducted in revenue account)
TCS Payable A/c CR Rs. 1
Please let me know that something is missing here. The entry is posting manually through FI (FB70). Please share your expertise.
Regards
Avinash