Setting Up TDS Processing

To set up your TDS processing, use the following components:

  • Withhold Rule (WTHD_RULE).

  • Withhold Type (WTHD_TYPE).

  • Withhold Jurisdiction (WTHD_JURISDICTION).

  • Supplier Categories (WTHD_VNDR_CAT).

  • Withholding Entity (WTHD_ENTITY).

  • Procurement Control (BUS_UNIT_INTFC2).

  • Supplier Information (VNDR_ID).

Note: Setting up TDS processing is similar to setting up your global withholding environment.

Page Name

Definition Name

Usage

Withhold Rule Page

WTHD_RULE

Establish the rules that determine the actions to be taken during withholding. For example, you can create rules to define the amount of withholding and to determine different percentages based on the size of the transaction amount.

Withhold Type Page

WTHD_TYPE

Specify a class and description for various withholding types. Select Contract Reference if the withhold class requires a contract reference on the voucher.

Withhold Jurisdiction Page

WTHD_JURISDICTION

Define withholding jurisdictions for the withholding type.

Supplier Categories Page

WTHD_VNDR_CAT

Define the relationship that exists between the withholding entity and your supplier. As jurisdiction and classification do, this relationship affects your withholding percentages.

Withholding Entity Page

WTHD_ENTITY

Define your withholding entities (tax authorities). The withholding entity component ties the withholding information together.

Withholding Entity - Entity Fields - Supplier Page

WTHD_ENTITY_FIELDS

Indicate which information the tax authority (entity) needs for your suppliers.

Entity Fields - Business Unit Page

BU_WTHD_ENT_FLDS

Indicate which information the tax authority (entity) needs for your business unit.

Withholding ChartFields Page

WTHD_BU_CF

Define the accounting entries to record the TDS amounts.

Supplier Information - Location Page

VNDR_LOC

Enter one or more locations for the supplier. Supplier location is a default set of rules, or attributes, which define how you conduct business with a particular supplier.

Withholding Supplier Information Page

VNDR_GBL_OPT_SEC

Define withholding information and reporting information for the supplier location.

Supplier Information - Payables Options Page

VNDR_PAY_OPT_SEC

Enter the BSR code in the Branch ID field to use for TDS reporting.

Invoice Information Page

VCHR_EXPRESS1

Enter or view invoice information, including invoice header information, nonmerchandise charges, and voucher line and distribution information.

Withholding Information Page

VCHR_WTHD_EXP

Override the withholding for the individual voucher lines, and specify a contract reference number if applicable.

Use the Withhold Rule page (WTHD_RULE) to establish the rules that determine the actions to be taken during withholding.

For example, you can create rules to define the amount of withholding and to determine different percentages based on the size of the transaction amount.

Navigation:

Set Up Financials/Supply Chain > Product Related > Procurement Options > Withholding > Rules > Withhold Rule

This example illustrates the fields and controls on the Withhold Rule page. You can find definitions for the fields and controls later on this page.

 Withhold Rule page

Field or Control

Description

SurCharge % (surcharge percent)

Enter a surcharge that is to be calculated on top of the tax amount, if required.

Additional Surcharge % (additional surcharge percent)

Enter an additional surcharge percent that is to be used for calculating the Education Cess tax levy, if required.

Use the Withhold Type page (WTHD_TYPE) to specify a class and description for various withholding types.

Select Contract Reference if the withhold class requires a contract reference on the voucher.

Navigation:

Set Up Financials/Supply Chain > Product Related > Procurement Options > Withholding > Types and Classes > Withhold Type

This example illustrates the fields and controls on the Withhold Type page. You can find definitions for the fields and controls later on this page.

 Withhold Type page

Field or Control

Description

Contract Reference

Select whether the withhold class requires a contract reference on the voucher.

Active

Select to indicate that the withholding class is active. The withholding class is available immediately for you to use to define your withholding entity options.

Note: The Contract Reference field is mandatory on the Voucher Withholding Information page, if you select Contract Reference.

Use the Withhold Jurisdiction page (WTHD_JURISDICTION) to define withholding jurisdictions for the withholding type.

Navigation:

Set Up Financials/Supply Chain > Product Related > Procurement Options > Withholding > Jurisdictions > Withhold Jurisdiction

Jurisdictions introduce an additional level of classification between the withholding type and withholding class. Jurisdiction also enables you to define different withholding percentages based on where the supplier is located, as well as on the classification (or activity) of a given transaction.

Field or Control

Description

Withholding Jurisdiction

Specify any jurisdictions that belong to this withholding type.

Use the Supplier Categories page (WTHD_VNDR_CAT) to define the relationship that exists between the withholding entity and your supplier.

As jurisdiction and classification do, this relationship affects your withholding percentages.

Navigation:

Set Up Financials/Supply Chain > Product Related > Procurement Options > Withholding > Supplier Categories > Supplier Categories

This example illustrates the fields and controls on the Supplier Categories page. You can find definitions for the fields and controls later on this page.

 Supplier Categories page

Field or Control

Description

Supplier Category

Enter any category that belongs to this withholding type.

Default Flag

Select to have the supplier category or categories appear as defaults for the Withhold Status field on the Withholding Supplier Information page.

Use the Withholding Entity page (WTHD_ENTITY) to define your withholding entities (tax authorities).

The withholding entity component ties the withholding information together.

Navigation:

Set Up Financials/Supply Chain > Product Related > Procurement Options > Withholding > Withholding Entities > Withholding Entity

Define the withholding entity on three pages. Enter the supplier information for the entity, define the file layout, currency code and rate, and applicable withholding rules and types. You can also use the Withholding Entity page to determine whether to create a separate withholding payment, to set up accounting ChartField parameters and basis for withholding, as well as to tie business unit and supplier categories.

This example illustrates the fields and controls on the Withholding Entity page. You can find definitions for the fields and controls later on this page.

 Withholding Entity page

Withholding Entity

Field or Control

Description

Apply Withholding

Select either Payment or Vchr Post (voucher post) to determine when withholding occurs. The default value is Payment.

Round Option

Select to indicate how the system should round to whole monetary amounts. Options are:

Down: Select this value to round amounts down to the next whole number, regardless of actual decimal amount.

Natural: Selecting this value rounds decimal amounts of less than 0.5 down to the next whole number, and rounds amounts of more than 0.5 up to the next whole number. Note that this option uses a function to determine the decimal precision to which to round the amount, depending on the installed currency configuration.

(IND) NRR (Nearest Rupee Rounding): Select to round to the nearest Rupee. If an amount contains a part of a rupee consisting of paise then, if such part is fifty paise or more, it will be increased to one rupee and if such part is less than fifty paise, it will be ignored. If the transaction currency is different from the base currency, the transaction amounts will not be rounded. Only the base amounts will be rounded.

TDS: Selecting this value rounds decimal amounts to the appropriate zero decimal, regardless of the installed currency configuration.

Up: Select this value to round amounts up to the next whole number, regardless of actual decimal amount.

Main Information Tab

Select the Main Information tab.

Field or Control

Description

Create Withholding Payment

Select if you want to create separate payments for the withholding.

Otherwise, withholding is not calculated, although basis amounts are reported.

Note: Creating a zero percent withholding rule accomplishes the same result.

Withholding Rule

Select the withholding rule to which these categories apply.

Hold Payment

Select to hold these payments. The available options are:

Hold All: Hold both the payment and the withholding amount.

No Hold: Do not hold the payment or withholding amount.

Wthd Only: Hold the withholding amount only.

You can override the option you select here at the supplier level on the Withholding Supplier Information page.

Note: If you wish to hold the supplier's payment, you can set the rule at zero percent and set the hold option to Hold All.

Additional Information Tab

Select the Additional Information tab.

Field or Control

Description

Min Basis (minimum basis) and Min Withhold (minimum withhold)

These fields are not used for TDS processing. Leave these fields blank.

Note: The actual threshold amount is checked against the withholding rule.

Payment Terms ID

Enter a term to indicate when the withholding portion of the voucher will be paid to the withholding entity.

Cumulative

Select to indicate that the system should monitor voucher totals until it reaches the threshold amount that you specified on the withholding rules. Vouchers must have identical values for the withhold entity, type, jurisdiction, class, rule, supplier ID, and contract reference fields. Once it reaches that amount, the system calculates withholding on previous vouchers and on future vouchers as they are entered.

Note: When the cumulative flag is not selected, the system calculates withholding on vouchers once the threshold limit is crossed but does not include previous vouchers.

See Calculating Withholding.

Use the Withholding Entity - Entity Fields - Supplier page (WTHD_ENTITY_FIELDS) to indicate which information the tax authority (entity) needs for your suppliers.

Navigation:

Set Up Financials/Supply Chain > Product Related > Procurement Options > Withholding > Withholding Entities > Withholding Entity - Entity Fields - Supplier

The Income Tax Department provides the permanent account number, which identifies you to the Income Tax Office.

Field or Control

Description

PAN No. (permanent account number) and PAN Ward

Select Required to make it mandatory that users enter the permanent account number and the permanent account number ward when they enter withholding information and to make the fields available on the Withholding Supplier Information page.

Use the Withholding Supplier Information page (VNDR_GBL_OPT_SEC) to define withholding information and reporting information for the supplier location.

Navigation:

Click the Global/1099 Withholding link on the Supplier Information - Location page.

This example illustrates the fields and controls on the Withholding Supplier Information page. You can find definitions for the fields and controls later on this page.

 Withholding Supplier Information IND

Note: Column order for grids may vary by implementation. All columns may not be visible.

Field or Control

Description

PAN No.

Enter a permanent account number for this supplier.

PAN Ward

Enter a permanent account number ward.

Use the Supplier Information - Payables Options page (VNDR_PAY_OPT_SEC) to enter the BSR code in the Branch ID field to use for TDS reporting.

Navigation:

Click the Payables link on the Supplier Information - Location page.

Expand the Supplier Bank Account Options collapsible region on the Supplier Information - Payables Options page.

Field or Control

Description

Branch ID

If appropriate, enter a branch ID for the bank. This field may not be available, depending on the country that you selected.

For India, enter the BSR code of the withholding entity's supplier's bank branch. This information is displayed on the TDS reports (APY8070 and APY8080).