How to account Advance TDS entry deducted while making an advance payment to Vendor?

How to account Advance TDS entry deducted while making an advance payment to Vendor?

We are accounting for the TDS while making an advance payment to vendors. This entry can be recorded in ADDA in below steps:
A) Post the advance payment entry to the vendor account 'after deducting TDS amount':
Step 1: Go to Admin –>> Expense Tracker
Step 2: Select “By Vendors” Tab
Step 3: Click on “View” button for respective vendor row.
Step 4: Click on the “Advance Payment” tab at the Top
Step 5: Click on “Post an Advance Payment to Vendor” button.
Step 6: Fill the payment details such as amount, mode, and comment, bank and so on.
Step 7: Click on “Post Amount”.

OR

Step 1: Go to Admin –>> Expense Tracker
Step 2: Select “By Vendors” Tab
Step 3: Click on “Payment” button for the respective vendor row.
Step 4: Click on Post Advance Payment button
Step 5: Fill the payment details such as amount, mode, and comment, bank and so on.
Step 6: Click on “Post Amount”.

B) Record TDS payable Entry to Respective Vendor:
Step 1: Go to Bank & Cash ->>Taxes->>TDS
Step 2: Click on Enter TDS Payable button (at the bottom of the page)
Step 3: Enter the TDS amount In amount column ->>Select a respective vendor to whom TDS has to deduct->>Write a narration in comment column->>Select a date ->>Click on post amount.
(This TDS booked entry will reflect into the vendor account statement, in advance payment section)

C) Book the Invoice and allocate the TDS & Advance payment into Invoice:
After getting an invoice against advance payment, book into the system without booking a TDS amount.
After posting the invoice do allocate the TDS payable entry which is available in Advance payment tab into Vendor account statement. And same way allocates the advance payment to the booked invoice.

    • Related Articles

    • How can I post an advance payment from a non-member vendor?

      We understand that advance payments by non-member vendors are uncommon, and ADDA presently does not have a direct mechanism for processing this in the vendor ledger. However, we have a recommended workaround option for you. Follow the below steps to ...

    • Payment returned by the vendor to the Association. How to account it on ADDA?

      ADDA presently does not have a direct mechanism for processing this in the vendor ledger. However, we have a recommended workaround option for you. Follow the below step to achieve this: Pass the below journal entry : Dr. Bank ( it will hit your ...

    • How to pass TDS entry where TDS is not deducted while booking the invoice?

      Step 1: Login to ADDA -->> Admin –>> Bank & Cash->>Taxes->>TDS Step 2: Enter the date -->>Fetch Step 3: Click on ENTER TDS PAYABLE which is available at the bottom of the same page. Step 4: Enter TDS amount -->>Select Vendor Name whom you missed to ...

    • How to post an Advance Payment against the Expense Vendor?

      Step 1: Go to Expense tracker>>By Vendor>>Click on Payment against the vendor name for whom you want to post the advance payment. Step 2:Click on Enter Advance Payment. Step 3:Enter the Payment details>>Click on the post. Note:If are deducting TDS, ...

    • How to allocate vendor advance payment?

      To allocate the vendor advance payment to an invoice, kindly follow the below steps: Step 1:Go to Expense tracker>>Click on view against the vendor name>>Click on Advance Payment. Step 2:Click on allocate against the advance payment entry. Step ...