Reconcile TDS with Expense and Balance sheet accounts

By | November 27, 2014

When we say TDS, we usually deal with the Vendors, Documents like Invoices, Credit/Debit Notes, Pre-payment, Nature of deductions and TDS sections. Basically these are the major constraints that are a part of the deduction and remittance process for TDS. Even when we file the TDS returns the above points are part of the required files and forms which we generate and submit to the government authorities.

There can be scenarios where an auditor might ask you to reconcile the TDS with the general ledger accounts.  This will be the accounts that are used in the respective transactions where TDS is being deducted, also this account can be used to calculate balance sheet or income statement.

New Stuff:  Migrating Open Purchase Orders from Sage PRO ERP to Sage 300 ERP

Going further the TDS Module of Sage 300 ERP helps us to generate such kind of report that can help us reconcile the TDS amounts with the corresponding general ledger accounts. The purpose of this report is to display the general ledger accounts and the TDS amounts deducted in front of each of them. Just to simplify the report can have the below columns:

  • General Ledger Account and Description.
  • Document Number.
  • Debit/Credit amounts.
  • Vendor Code
  • Vendor Name.
  • TDS Percentage.
  • TDS Amount.

From control point of view, we can always ensure that our TDS return values are matching with this report before filling the return. This will help the user to track whether proper sections are being used along with proper general ledger accounts to book the TDS. For example, the total of Rent section in the TDS return should match with the rent accounts total shown in the mentioned report and so on.

Thus this report can turn out to be critical when it comes to reconciling the TDS returns before you file it.

Also Read:
1.  Taxes in Sage 300 ERP
2. Multicurrency in Greytrix TDS
3. Configuring Greytrix TDS in Sage 300 ERP – III
4. Greytrix TDS – Quarterly E-TDS Return September Update
5. Greytrix TDS with PJC Integration