💡 Quick Tip: Adjusting TDS When Missed on a Posted Purchase Invoice in Dynamics 365 Business Central

In day-to-day accounting, it's common to encounter missed deductions—especially TDS (Tax Deducted at Source). But don’t worry, reversing and reposting an entire purchase invoice isn’t the only way forward!

This blog post walks you through a quick and clean workaround in Dynamics 365 Business Central for accounting missed TDS without canceling the original invoice.

📌 Scenario

A Purchase Invoice is posted without TDS, but it should have had TDS deducted. What now?

🔁 Regular Suggestion (Standard Approach)

1. Cancel the original invoice by creating a Purchase Credit Memo
2. Repost the Purchase Invoice, this time applying TDS correctly

While this method works, it's more time-consuming and creates additional document trails.

🔄 Alternative Suggestion (Workaround Method)

Let’s walk through an efficient workaround using a Bank Payment Voucher to account for the missed TDS.

📊 Example

• Purchase Invoice Amount: ₹10,000
• TDS Rate: 1%
• TDS Amount: ₹100

Instead of reversing the invoice:

✅ Step-by-Step: Adjust TDS via Bank Payment Voucher

1. Go to: Bank Payment Voucher
2. Create a new line:
   • Account Type: Vendor
   • Account No.: Select the vendor from the posted invoice
   • Amount: ₹100
   • Amount Excl. GST: ₹10000 (TDS base Amount)
   • Bal. Account Type: Bank Account
   • Bal. Account No.: Select the appropriate bank account
3. Post the voucher

📘 Financial Impact

📌 Why This Works

• Vendor balance is reduced by the TDS amount
• TDS is recorded properly in the correct ledger account
• No need to cancel and recreate the invoice
• Clean, audit-friendly, and compliant

🏁 Final Thoughts

This workaround is a time-saving tip when you forget to apply TDS during purchase invoice posting in Dynamics 365 Business Central. It’s especially helpful during closing periods when speed and accuracy are key.

For more expert tips on ERP software and Microsoft Dynamics 365 implementation, explore other blogs at Leaping Frog Solutions.