SAP Accounti ng TCS Configuration Problem in SAP joy83 asked Apr 5, 2013 | Replies (2) J oin this group 0 Dear expert, Can anyone tell me what is the basic function of tax collected at source(TCS). And link with vendor and customer? TCS is purely for customer or for both we can use TCS? And if possible please provide me the config details of TCS in SAP. Client requirement to implement TCS in SAP. I worked on TDS but not yet in TCS. So am confused how to configure. Someone telling me it's configuration same as TDS. But I want step by step process. Hope I may get an early reply regarding this issue. -- Thanks and regards, J oy Lodh Popul ar Whi te Paper On Thi s Topi c Five Essential Questions for Successful Cloud Communications Services 2 Repli es RAJ EEV KUMAR replied Apr 5, 2013 Dear J oy, Check the information below, See if it helps. These settings are applicable in India. What is TCS? Answer: The seller has to collect tax from the payer who has purchased the following items: Alcoholic liquor for human consumption Tendu leaves Timber obtained under a forest lease Timber obtained by any mode other than under a forest lease Any other forest produce not being timber or Tendu leaves TCS Configuration Problem in SAP - Toolbox for IT Groups http://sap.ittoolbox.com/groups/technical-functional/sap-acct/tcs-configur... 1 of 6 01-Jul-14 6:40 PM Scrap Parking lot Toll plaza Mining and quarrying *Required Configuration:* Define Withholding Tax key (206C) Define Withholding Tax type Create the access sequence for withholding for TCS in SD. (Copy the existing access sequence J 1AW and create the new access sequence) Create condition types corresponding to Tax collected at Source in SD Assign withholding tax types to SD condition types Define withholding tax codes Assign GL accounts for withholding tax types Add TCS conditions in pricing procedure. (Assign TCS conditions in pricing procedure as a statistical conditions) We will need to define a new condition type and add this to the pricing procedure to post to the FI. This condition type will be manual and can be manually filled at the time of creation of sales order. This can also be copied from the statistical TCS condition types in the pricing procedure To calculate and report tax collected at source, make the following settings (all under country key IN): *Customizing* *Settings* 1.Financial Accounting (New) [image: ] Financial Accounting Global Settings (New) [image: ]Withholding Tax [image: ] Extended Withholding Tax [image: ] Basic Settings [image: ] Define Withholding Tax Keys Create official withholding tax key 206C 2.Financial Accounting (New) [image: ] Financial Accounting Global Settings (New) [image: ]Withholding Tax [image: ] Extended Withholding Tax [image: ] Calculation [image: ] Withholding Tax Type [image: ]Define Withholding Tax Type for Invoice Posting Create withholding tax type S1 with the name Tax Collected at Source-Base and make the following settings: - Base amount =Modif. net amount - Rounding rule =Round w/tax amnt up - Select Post w/tax amount checkbox TCS Configuration Problem in SAP - Toolbox for IT Groups http://sap.ittoolbox.com/groups/technical-functional/sap-acct/tcs-configur... 2 of 6 01-Jul-14 6:40 PM - Accumulation type =No accumulation - Control data =select checkboxes W/tax base manual, Manual w/tax amnt, and No cert. numbering Similarly create withholding tax types S2, S3, and S4 with the names Tax Collected at Source-Surcharge, Tax Collected at Source-Education Cess, and Tax Collected at Source-SECESS respectively and make settings as stated above. 3.Sales and Distribution [image: ] Basic Functions [image: ] Pricing [image: ] Pricing Control [image: ] Define Access Sequences (choose Maintain Access Sequences) Copy the existing access sequence J 1AW and create a new access sequence J 1IW with the name Withholding tax code - country-specific and make the following settings: - Access sequence-Access number =10 - Condition table =399 4.Sales and Distribution [image: ] Basic Functions [image: ] Pricing [image: ] Pricing Control [image: ] Define Condition Types (choose Maintain Condition Types) Create condition type J TCS with the name TCS-Base and make the following settings: - Access sequence =J 1IW - Cond. class =W - Calculat. type =A - Cond. category =D - Select Item Condition checkbox Similarly create condition types J TEC and J TSE with the names ECS on TCS and SECess on TCS respectively and make settings as stated above. 5.Financial Accounting (New) [image: ] Financial Accounting Global Settings (New) [image: ]Withholding Tax [image: ] Extended Withholding Tax [image: ] Calculation [image: ] Withholding Tax Type [image: ]Assign Condition Type to Withholding Tax Type Assign condition types J TCS, J TEC, and J TSE to withholding tax types S1, S3, and S4 respectively. 6.Financial Accounting (New) [image: ] Financial Accounting Global Settings (New) [image: ]Withholding Tax [image: ] Extended Withholding Tax [image: ] Calculation [image: ] Withholding Tax Code [image: ]Define Withholding Tax Codes Create withholding tax code S1 with name TCS-Base and make the following settings: - Off. W/Tax Key =206C - Post.indic. =3 Similarly create withholding tax codes S3 and S4 with the names Education cess on TCS and SECess on TCS and make settings as stated above. TCS Configuration Problem in SAP - Toolbox for IT Groups http://sap.ittoolbox.com/groups/technical-functional/sap-acct/tcs-configur... 3 of 6 01-Jul-14 6:40 PM 0 7.Financial Accounting (New) [image: ] Financial Accounting Global Settings (New) [image: ]Withholding Tax [image: ] Extended Withholding Tax [image: ] Posting [image: ] Accounts for Withholding Tax[image: ] Define Accounts for Withholding Tax to be Paid Over Enter the chart of accounts CAIN. You need to maintain the same G/L account for the transaction key WIT-based tax line items and SD-FI condition based tax line items. Maintain a separate G/L account for the transaction key OFF-based line items. Since posting of TCS happens on both SD and FI documents, ensure that you assign the same G/L account for each combination of withholding tax type and withholding tax code. [image: Note] NOTE To post tax collected at source for Sales and Distribution documents, maintain the same G/L account in Customizing forSales and Distribution, by choosing Basic Functions [image: ] Account Assignment/Costing [image: ] Revenue Account Determination [image: ] Assign G/L Accounts . 8.Sales and Distribution [image: ] Basic Functions [image: ] Free Goods [image: ] Control Free goods Pricing [image: ] Maintain Pricing Procedure For Pricing Select the pricing procedure J INFAC and double-click Control data. The system displays the Control data screen. Define the condition types J TCS, J TEC, and J TSE and add them to the pricing procedure J INFAC. The system calculates the values of the goods but does not post them directly to the Sales and Distribution document (SD). Instead, posting takes place based on the assignment of condition types to the withholding tax types (refer step 5). 9.Sales and Distribution [image: ] Basic Functions [image: ] Pricing [image: ] Pricing Control [image: ] Define Condition Types (choose Maintain Condition Types) Create a new condition type J WTS to post TCS to Financial Accounting (FI) documents. Add this condition type to the pricing procedure J INFAC. Similarly create condition types J ETS for ECS on TCS and J STS for SECess on TCS and add them to the pricing procedure J INFAC. joy83 replied Apr 6, 2013 Dear Rajeev, Good morning. Thanks lot for your reply and explained it very nicely. If I found anything wrong when am doing settings in the system then let you know. Thi s thread has been cl osed due to i nacti vity. Start a new thread here TCS Configuration Problem in SAP - Toolbox for IT Groups http://sap.ittoolbox.com/groups/technical-functional/sap-acct/tcs-configur... 4 of 6 01-Jul-14 6:40 PM We Recommend How to di sable a fiel d i n SAP screen? Li mit of rows i n your select-options / ranges Start SAP BEx Anal yzer 7.30 wi thout usi ng SAPBEX.xl a No Customer Master record exi sts for sol d to party 961000005. - Toolbox for IT Groups What is the Value of a Certified SAP Consul tant? How to li st all the transacti on codes Modul e-wise From Around The Web 10 Essenti al SEO Terms You Shoul d Know (Titan SEO) Playful Designs for a Creati ve Home (Dwell) Re-Decorate Your Bedroom with these 4 Easy Tips (Reflections) 5 Habits That Lead To Depression (Lifespan) 8 Wei rd Things Our Bodi es Do i n the Cold (Learnist) From Around The Web Recommended by Recommended by J ay Leno's Car Collection (Learnist) 7 Hot Hatches That Will Change How You Think About Hatchbacks (Learnist) BMW Introduces Its 2015 X4 Sport Activity Coupe (Robb Report) 10 Useful Frameworks To Develop HTML-Based Webapps for Touch Devices (Learnist) The Rolls-Royce Ghost Series II Is Almost Here (Robb Report) Classic Cars Cross the Block at RM Auctions Monaco Sale (Robb Report) Teslas apparent altruism with its patents is just smart business (South China Morning Post) The Global Debt Phenomenon - Discover Recovery Techniques (FICO) TCS Configuration Problem in SAP - Toolbox for IT Groups http://sap.ittoolbox.com/groups/technical-functional/sap-acct/tcs-configur... 5 of 6 01-Jul-14 6:40 PM Col laboration Tools Discussion Groups Blogs Wiki Toolbox for IT My Home Topics People Companies J obs White Paper Library Fol low Toolbox.com Toolbox for IT on Twitter Toolbox.com on Twitter Toolbox.com on Facebook Data Center Data Center Development C Languages J ava Visual Basic Web Design & Development Enterpri se Appli cations CRM ERP PeopleSoft SAP SCM Siebel Enterpri se Archi tecture & EAI Enterprise Architecture & EAI Informati on Management Business Intelligence Database Data Warehouse Knowledge Management Oracle IT Management & Strategy Emerging Technology & Trends IT Management & Strategy Project & Portfolio Management Cl oud Computing Cloud Computing Networki ng & Infrastructure Hardware Networking Communications Technology Operating Systems Linux UNIX Windows Security Security Storage Storage Topics on Tool box for IT Toolbox.com About News Privacy Terms of Use Work at Toolbox.com Advertise Contact us Provide Feedback Help Topics Technical Support PCMag Digital Group AdChoice Other Communiti es Toolbox for HR Toolbox for Finance Copyright 1998-2014 Ziff Davis, LLC (Toolbox.com). All rights reserved. All product names are trademarks of their respective companies. Toolbox.com is not affiliated with or endorsed by any company listed at this site. TCS Configuration Problem in SAP - Toolbox for IT Groups http://sap.ittoolbox.com/groups/technical-functional/sap-acct/tcs-configur... 6 of 6 01-Jul-14 6:40 PM