Tax Deducted At Source (TDS) Tax Category Is Not Getting Defaulted On Payables Invoice When Threshold Is Not Breached (Doc ID 3039826.1)

Last updated on AUGUST 06, 2024

Applies to:

Symptoms

TDS Category is not getting defaulted correctly and also TDS Amount not getting calculated correctly in case when both single and cumulative threshold is present and threshold has been breached for one of the invoice because of single threshold whereas it is expected that TDS should calculate correctly as per the setups.

The issue can be reproduced at will with the following steps:
1. Navigate to India Local Payables->Oracle Payables->Invoices->Invoice.
2. Create an Invoice for the vendor who has threshold setup like 30001 - NULL for Single and 100001 - NULL for cumulative slabs.
3. Create first transaction of Rs 25000 and for which TDS Section and Category got defaulted. TDS also get calculated but TDS Invoice not generated as expected.
4. Create second transaction of Rs 35000 and for which TDS Section and Category got defaulted. TDS also get calculated and TDS invoice also generated.
5. For third transaction of Rs 20000, TDS section was defaulted but category was not defaulted which is incorrect and because of which TDS did not get calculated.
6. For 4th transaction of Rs 2000, section was defaulted but category was not defaulted which is incorrect and because of which TDS did not get calculated.
7. Because of that Vendor Threshold Amount was showing as 60000 only instead of 82000.
8. Created a 5th transaction of Rs 45000, for which TDS Section and Category got defaulted. TDS also get calculated and TDS invoice also generated..
9. After that TDS invoice got generated for 1st invoice.
10. Navigate to Oracle Financials for India Responsibility->Withholding Setup->Vendor Threshold where it was showing amount as Total Invoice Amount as 105000 instead of 127000 and Tax Amount as 24100(20000+2000+2100).

Cause

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