SAP Knowledge Base Article - Public

1961025 - How to Enter Withholding Tax Deduction by Customer


This document describes how to capture the tax deducted at source (TDS) or withholding tax deducted by the customer when entering an incoming payment.


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  1. Go to the Receivables work center.
  2. Click Customers Accounts view.
  3. Select option All Customers in the Show field, enter Account ID ABC (ABC means the Account ID) in the Find field and click Go button.
  4. Select Account ID ABC and click View button.
  5. Go to the Trade Receivables tab.
  6. Click New Charge/Credit button and select the following parameters:
  • Charge/Credit: 2 - Customer Credit 
  • In the G/L Account field: Tax G/L Account (for TDS deduction) 
  • In the Net Amount field: TDS amount (deducted by the Customer)
  1. Click Post button.
  2. It will take you to the Trade Receivables tab, click the Refresh icon.
  3. You can see the document for Customer Charge under the document type Other Payable.


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