Pay a bill and deduct TDS

A payment is attached to the bills it settles. An unallocated payment makes the vendor balance right and every individual bill wrong.

Open the bill first

A bill starts as a Draft while it is being entered and checked. A draft is not yet a debt — nothing is owed on it, it does not appear in payables, and it will not take a payment. Choose Mark as open and it becomes something owed; from there it moves to Partially paid, Paid or Overdue on its own as money goes out.

Steps

1. Go to Procurement, Payments made and choose Record a payment, or open the bill and choose Record a payment.
2. Pick the vendor. Their open bills are listed with what is to pay on each, and the TDS each one holds.
3. Enter the amount, date and method. Full fills in the cash due.
4. Allocate the payment across the bills.
5. Save.

A cheque not yet cleared is recorded with Not cleared yet ticked: it pays nothing until you open it in Payments made and choose Mark cleared, and It bounced puts the bills back to owing.

Paying ahead

• On an open purchase order, choose Pay ahead. When the order is billed and the bill opened, the money moves onto the bill by itself.
• Money paid on account is put on a bill later: open the payment in Payments made and choose Apply to a bill.
• TDS deducted on money paid ahead counts towards the bill, so the bill books only the rest and the supply is deducted once.

Depositing it: the register and the challan

Everything deducted lands in Books, TDS register. Its tiles are the financial year’s: Deducted, Deposited and Still to deposit. The year box beside the list picks another year. Filtering the list to vendors or employees does not change the tiles.

1. When you pay the tax to the government, choose Record a challan.
2. Type the challan number, the BSR code and the date it was paid, and pick the account it was paid from.
3. Type the Section. Every deduction under it that no challan has cleared yet is listed and ticked. Untick any this challan does not cover.
4. The Amount follows what is ticked, and the two must agree. Interest or a late fee paid with the challan is recorded as an expense.
5. Save. The ticked deductions show the challan number in the register and count as deposited.

A deduction counts as deposited in the year it was deducted, whatever date the challan carries. TDS deducted in March and paid on 7 April is deposited for March’s year, which is how the quarterly return reads it. A challan saved with nothing ticked still counts, in the year of its own date.