Wrong TDS Calculation for cases where exists multiple prepayment application / unapplication (Doc ID 2124250.1)

Last updated on MARCH 20, 2025

Applies to:

Symptoms

On : 12.2.5 version, Tax Deducted at Source-Payables

Issue Clarification
--------------------

Observed that post application of patch 22752979:R12.JAI.C. ,
the TDS calculation is incorrect for the transactions where it has
multiple prepayment application / unapplication events.

Expected Behaviour
------------------
The TDS deduction should be correct irrespective of the prepayment
application / unapplication events .
 
Example of incorrect tax calculation:-
---------
1. Prepayment is raised for example of Rs 12000 where TDS 2% is attached.
2. On validation , generated TDS invoice is for amount 240.
3. Raise a standard invoice for Rs. 15000 where 2% TDS tax is attached.
4. Now ,Apply / unapply / reapply the prepayment and the validate the invoice.
5. Ideally should be be generated as (15,000 - 12,000)  * 2/100 = 60
   but it is getting generated as 0.

STEPS FOR REPLICATION
-----------------------
The issue can be reproduced at will with the following steps:
1. Create prepayment ,attach TDS validate pay. Check the generated TDS invoice amount.
2. Create standard invoice and attach TDS Tax.
3. Apply/Unapply/Reapply and then validate.
4. TDS deduction amount is zero.

BUSINESS IMPACT
-----------------------
The issue has the following business impact
where cannot reapply the prepayment on the standard invoice which results in
incorrect tax calculation and impacts their TDS submission.

Cause

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