Set up payment schedules with TDS allocation

This article explains how to set up payment schedules with Tax Deducted at Source (TDS) allocation.

1. Go to Accounts payable > Payment setup > Payment schedules.

   []

2. On the Action Pane, select New to create a payment schedule, and enter the required details.

3. In the Allocation field, select the method to use to allocate the payment for the payment schedule:

   • Total
   • Fixed amount
   • Fixed quantity
   • Specified

   The Withholding tax allocation field shows the TDS allocation method for the payment schedule. If you select Total in the Allocation field, the Withholding tax allocation field is automatically set to Total. If you select Fixed amount, Fixed quantity, or Specified in the Allocation field, the Withholding tax allocation field is automatically set to Proportionally.

   Note

   If the Withholding tax allocation field is set to Total, the payment installments are calculated based on the gross amount, which includes the TDS amount. If the Withholding tax allocation field is set to Proportionally, the payment installments are calculated based on the net invoice amount after the TDS amount is deducted.

4. Enter the other required details, and then close the page.