Introduction
The requirements for tax calculation and tax reporting differ significantly for different countries. Therefore, the tax module of a true international Enterprise Resource Planning (ERP) system must be comprehensive. In Microsoft Dynamics AX 2009, the tax module offers many different options for: Tax calculation Posting Reporting
This course explores the extensive functionality for sales tax handling.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-1
6-2
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
If you sell the item P Lamp to customer TTL Tire, the system calculates the sales taxes based on tax codes CA and Fed because those codes exist in both groups.
When you attach settlement period and posting group to the tax codes, you specify how to post and pay the taxes. Finally, you can set up the tax reporting on the sales tax code.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-3
1. Click General ledger, then click Setup, then click Ledger posting groups, and then click the Overview tab. 2. Enter a unique name for the ledger posting group in the Ledger posting group field. 3. Enter a meaningful name to describe the ledger posting group in the Description field. The description appears on reports and other areas throughout Microsoft Dynamics AX 2009.
6-4
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
HINT: Describe the groups so that you can recognize them. This description appears with the code of the ledger posting group. 4. Select the ledger account in the Sales tax payable list, where you must post the outgoing sales tax as part of the company's revenue. The system debits the outgoing tax in the customer account and then credits this account. Debits automatically are recorded in the account and settled upon payment of the taxes. The ledger accounts available in the Sales tax payable list are the posting type of sales tax on the Setup tab in the Chart of accounts form. However, if you want to select other ledger accounts, click According to account type in the Sales tax payable, Use tax payable or Settlement account lists.
** The sales tax payable line represents the ledger account specified in the Sales tax payable field on the Ledger posting group form. The system credits this account for sales tax amounts received from customers and debits the appropriate customer accounts.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-5
2. Enter the ledger account for posting deductible incoming taxes that vendors do not claim or report to the tax authority in the Use-tax expense list. NOTE: If the Apply US sales tax and use tax rules check box is selected on the General Ledger Parameters form on the Sales tax tab, the Sales tax payable field is unavailable. Instead, the system debits sales taxes paid to vendors as expenditures (costs) to the same accounts as the purchases.
6-6
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
***This account represents the ledger account specified in this field. NOTE: This field is visible only when the Apply U.S. sales tax and use tax rules check box is selected in the General ledger parameters form on the Sales tax tab.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-7
6-8
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Challenge Yourself!
Create an account to record the sales tax payable and the sales tax settlements for the Alabama customer. Set up a new ledger posting group to assign to the Alabama customer to automate postings of sales tax transactions.
Step by Step
Set up the ledger account: 1. On the Navigation Pane, click General ledger, then click Chart of Account details. 2. Press CTRL+N to add a line. 3. In the Ledger account field, enter 220105. 4. In the Account name field, enter Alabama state sales tax payable. 5. In the Search name field, enter ALsales tax pay. 6. In the Account type field, click the arrow to select Balance. 7. Click the Setup tab. 8. In the Posting type field, click the arrow to select Sales tax. 9. Close the Chart of accounts form.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-9
6-10
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
1. Click General ledger, then click Setup, then click Sales tax, click Sales tax authorities, and then click the Overview tab. 2. Enter a unique code for the authorities that you send tax declarations and payments in the Authority field. Microsoft Dynamics AX 2009 uses this code throughout the system to refer to a particular authority. 3. Enter the name of the tax authority in the Name field. It displays on reports and in other areas throughout the system. NOTE: Give the tax authority a name that easy to identify. The name display together with the tax authority code.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-11
6-12
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-13
Challenge Yourself!
Set up the Alabama sales tax authority. Use ALA for the authority name.
Step by Step
1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax authorities. 2. Press CTRL+N to add a new line. 3. In the Authority field, enter ALA. 4. In the Name field, enter Alabama Authorities. 5. In the Report layout field, click the arrow to select U.S. report layout. 6. Click the General tab. 7. In the Rounding form field, click the arrow to select Normal. 8. In the Round-off field, enter .01. 9. Close the Authority form.
6-14
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Lab 6.3 - Create and Assign a Vendor to the Sales Tax Authority
To make paying the sales tax authorities more efficient, you can assign a vendor to the authority. This lab shows how to assign a vendor. Scenario Phyllis, the Accounting Manager for Contoso, has discovered that assigning a vendor to a sales tax authority has the following advantages: She can make payments as a part of the typical payment routines. When she runs the Sales tax payment periodic job, the amount the company owes the sales tax authority transfers to the sales tax authority's vendor account. During the company's usual payment routine, the payment to the sales tax authority is created automatically with payments to other vendors.
To automate payments to the Alabama sales tax authority, Phyllis has asked you to set the Alabama sales tax authority up as a vendor. Use the following information for the vendor. Field Name Search name Group Terms of payment Method of payment Value State of Alabama AL tax 10 M15-Month end + 15 days USAUSD_CHK
Challenge Yourself!
Create a vendor for Alabama sales tax. Assign the vendor to the sales tax authority for Alabama.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-15
Step by Step
Ensure that the setup is correct for automatic vendor numbering: 1. Click Basic, then click Setup, then click Number sequences, and then click Number sequences. 2. Select the AP_001 number sequence. 3. Click the General tab. 4. Make sure that the Manual check box is not selected. 5. Close the Number sequences form. Set up the vendor: 1. On the Navigation Pane, click Accounts payable, then click Vendor details. 2. Press CTRL+N to add a line. In Contoso, because of accounts payable setup, the next available vendor number is assigned automatically. 3. In the Name field, enter State of Alabama. 4. In the Search name field, enter AL tax. 5. In the Group field, click the arrow to select 70- Tax Authorities. 6. Click the Payment tab. 7. In the Term of payment field, use the arrow to select M15. 8. In the Method of payment field, use the arrow to select USAUSD_CHK. 9. Close the Vendor form. Assign the vendor to the authority: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax authorities. 2. Locate the line for Alabama Authorities. 3. In the Vendor account field, click the arrow to select State of Alabama. 4. Close the Authority form.
6-16
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-17
6-18
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
CAUTION: The sum of period intervals must cover whole periods so that no tax transactions fall outside the calculation periods. Period intervals may not overlap.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-19
HINT: Click General ledger > Reports > External > Sales tax payments to print a report about all settled sales taxes. View posted sales tax transactions for a specific sales tax authority by selecting a sales tax authority on the Overview tab and clicking Posted sales tax. This provides an overview of each sales tax transaction, which is posted in Microsoft Dynamics AX 2009 with a sales tax code. Alternatively, click Sales tax per interval to view posted sales tax transactions for a specific interval.
Use settlement periods to create and manage the periods the company uses to report sales tax.
6-20
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
April has asked for your assistance in completing the setup for the Alabama sales tax settlement so that April can generate the tax payments automatically.
Challenge Yourself!
Set up the required sales tax settlement for Alabama.
Step by Step
Set up the Overview tab: 1. On the Navigation Pane, click General ledger, click Setup, click Sales tax, and then click Sales tax settlement periods. 2. Press CTRL+N to insert a line. 3. In the Settlement period field, enter AL. 4. In the Description field, enter Alabama Quarterly. 5. In the Authority field, click the arrow to select ALA-Alabama Authorities. 6. In the Terms of payment field, use the arrow to select N015.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-21
6-22
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
The sales tax value is very important because no tax is calculated without it. A sales tax code includes information about: How the tax is calculated, posted and reported When the payments are made To whom the payments are made
You can define the sales tax rate for: Various intervals and periods in Values Limits on sales tax amounts in Limits
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-23
1. Click General ledger, then click Setup, click Sales tax, then click Sales tax codes, and then click the Overview tab. 2. Press CTRL+N to create a line for the new sales tax code. 3. Enter a unique identifier for the sales tax code in the Sales tax code field. This is the basis for calculation of tax, purchase duty, and packing duty throughout Microsoft Dynamics AX 2009. 4. Enter a meaningful name for the new sales tax code in the Name field. This describes the function of the code and appears on reports and throughout the Microsoft Dynamics AX 2009 system. NOTE: If a company operates in the United States, set up sales tax jurisdictions in the Sales tax jurisdiction list. 5. Select the period and the sales tax authority used to calculate the sales tax code in the Settlement period list. 6. Select ledger posting group for a sales tax code in the Ledger posting group list. The posting group contains information about which accounts to use when the sales tax amounts automatically are posted in the General Ledger. You can create the posting groups in the Ledger posting groups form.
6-24
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Calculated percentage of the net amount. On the Calculation tab in the Unit list, select the unit to use when taxes are calculated. If the transaction is expressed in another unit, it converts automatically according to the Unit conversion. NOTE: If the basis for tax is the number of units, this Unit field is mandatory.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-25
3. Click the Report setup or Report setup - credit note tab. 4. Insert the Reporting code numbers to facilitate reporting on the Report setup and Report setup - credit note tab pages. Frequently the tax authorities have special forms with numbered cells for reporting of taxes. For example, in the Taxable sales list, you can select the number of the field in the tax report that contains taxable sales. A series of forms exists within Microsoft Dynamics AX 2009, which contains numbered cells that you can report to various authorities. The sales tax code is included in these reports in the cell indicated in this field.
6-26
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
NOTE: In the Parameters form (click General ledger, click Setup, click Parameters, and then click the Sales tax tab), select the Calculation date type to determine the date that sales tax calculates. In the Method of calculation list, select whether the sales tax should calculate for each line or the total amount.
10% 20%
25%
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-27
Example Setup- Calculation Methods for Sales Tax Codes- Completed Table
The completed table as shown here: Setup 1 Rate Duty 1 Duty 2 Gross Amount Sales Tax Calculation Duty + Sales Tax Total Sale 25% 10% 20% Formula $10 * 10% $10 * 20% $10+1+2 $13 * 25% $1+2+3. 25 $10 + 6.25 Calculation $1.00 $2.00 $13.00 $ 3.25 $ 6.25 $16.25 Setup 2 Formula $10 * 10% ($10+1) *20% $10+1+ 2.20 $13.20 * 25% $1+2.20 +3.30 $10 + 6.50 Calculation $1.00 $2.20 $13.20 $ 3.30 $ 6.50 $16.50
6-28
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Sales taxes lower than the minimum limit amount are not recorded, and sales taxes over the upper limit amount are set to the upper limit amount automatically. You can attach the limits to specific dates. The sales tax code defines the limits. Changes to minimum and upper limits do not affect sales tax that is already updated and posted.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-29
6-30
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-31
6-32
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
_____ 1. Net amount for each line _____ 2. Net amount for each unit _____ 3. Net amount of invoice balance _____ 4. Gross amount for each line _____ 5. Gross amount for each unit _____ 6. Invoice total incl. other sales tax amounts
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-33
Challenge Yourself!
Use sales tax code intervals to structure the AV_FLST tax rate in Microsoft Dynamics AX 2009 for the new rates. Microsoft Dynamics AX 2009 will require an ending date for the tax. Plan to enter an artificial date of 12/31/2020.
Step by Step
Edit the LA-FLST line: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax codes. 2. Locate the line for AV_FLST. 3. Click the Values button. Edit the existing line by adding dates: 1. In the From date field, enter 01/01/2003. 2. In the To date field, enter 06/30/2008. 3. Press CTRL+N to add a line.
6-34
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Create the rest of the lines: 1. Press CTRL+N to add a line. 2. Repeat steps 1 through 8 to add the remaining tax intervals to the form. 3. Close the Values form. 4. Close the Sales tax codes form.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-35
In a table, they appear as follows: Domestic customers VAT Export Tax Environmental Duty Yes No Yes Foreign customers No Yes Yes
The two groups of customers (domestic and foreign) do not have identical tax needs. Therefore, you must create two different sales tax groups that reflect the differences: Foreign customers: this group would contain the Export Tax and Environmental Duty tax codes Domestic customers: this group would contain the VAT and Environmental Duty tax codes
After you create the sales tax groups, attach the appropriate sales tax group to: Customers Vendors Ledger accounts
6-36
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Because the geographic location of the customer or the supplier determines taxes, you usually assign the same Sales tax group to similar trading partners in the system. The correct tax codes used by the system are attached to this Sales tax group. The Sales tax group then associates with customer information specified in the Sales tax group field found on the Setup tab in the Customers form. 1. Click General ledger, then click Setup, then click Sales tax, then click Sales tax groups, and then click the Setup tab. 2. Enter a unique name for the sales tax group in the Sales tax group field. 3. Enter a name that identifies the sales tax group in the Description field. 4. Select Sales tax code in the Sales tax group setup list. If the company is located in a country with sales tax jurisdiction, select the Sales tax jurisdictions value. NOTE: If the Sales tax jurisdictions value is selected in the Sales tax group setup list, a new tab called Jurisdictions setup appears. 5. Select the rounding criteria for the sales tax group in the Rounding by list.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-37
6-38
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-39
6-40
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
1. Click General ledger, then click Setup, then click Sales tax, and then click Item sales tax groups. 2. Enter a unique name for the item sales tax group in the Item sales tax group field on the Overview tab, and a description in the Description field. This information appears on reports and in other areas throughout Microsoft Dynamics AX 2009. 3. Select the sales tax code for an item sales tax group on the Setup tab. For a sales tax code to be valid, you must select it for the sales tax group and the item sales tax group. The sales tax codes calculated are determined automatically when you post.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-41
You can change any default item sales tax group that appears automatically on a journal line as necessary before the transaction posts. NOTE: In sales journals, purchase journals, and other journals where you enter an item number, the item sales tax group attached to the item automatically is entered on the journal lines.
Procedure: Set Up a Default Item Sales Tax Group for a Ledger Account
Follow this procedure to select a default item sales tax group for all ledger accounts: 1. Click General ledger, then click Setup, then click Parameters. 2. Select the default item sales tax group in the Item sales tax group list on the Sales tax tab. The item sales tax group in this field is entered automatically on journal lines as you create them, unless a specific item sales tax group is attached to the ledger account that you enter in the line.
6-42
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-43
6-44
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-45
The vendor's information is in the following table: Field Name City State ZIP Code/Postal Code Group Currency Terms of Payment Value Blue Yonder Airlines Little Rock AR 72205 10 USD N030
6-46
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
You can set up the sales tax authority by using the U.S. Report layout. Plan to round taxes in a typical manner to the nearest penny. Any gain or loss that occurs when you round will post to account 618160. The tax breakdown for city and state taxes is as follows: City of Little Rock: three percent, the maximum tax limit that can be paid is $1000 in sales tax State of Arkansas: two percent
Challenge Yourself!
Setup two ledger posting groups, by using ARST for Arkansas and LRAST for Little Rock. Setup a sales tax group by using ARLRA as the group name. Setup a sales tax authority by using ARA as the authority name. Enter a sales tax settlement period (AR) to use for each code. The term of payment is fifteen days. The settlement period is an interval of one month. Then set up three new periods starting with the beginning of the current month. Plan to set up two sales tax codes, one for each authority, by using the codes ALL_LRCITY and ALL_ARST. Use the standard ledger posting group for each tax code. Add the two new sales tax codes to the ALL item tax group. After you complete the sales tax setup, record the invoice in an accounts payable Invoicejournal. Make sure when creating the journal that you have deselected the field Amount incl. sales tax found on the Setup tab of the journal. Set your session date to 6/30/2008. Review the tax calculation in the journal.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-47
Step by Step
Set up Blue Yonder Airlines as a vendor: 1. On the Navigation Pane, click Accounts payable, then click Vendors. 2. Press CTRL+N to add a line. In CEU, the next available vendor number is assigned automatically based on setups in the sample data. 3. In the Name field, enter Blue Yonder Airlines. 4. In the Search name field, enter Blue Yonder. 5. In the Group field, click the arrow to select 10. 6. Click the Address tab. Click CTRL+N to create a new address. 7. In the Zip code field, enter 72205. 8. Verify that the tab entries are correct; these values were populated automatically based on setups in the sample data. 9. Click the Payment tab. 10. In the Term of payment field, use the arrow to select N030. 11. In the Method of payment field, use the arrow to select USAUSD_CHK. 12. Click the Save icon on the toolbar. Set up the Arkansas Department of Revenue as a vendor: 1. Click the Overview tab. 2. Press CTRL+N to add a line. The next available vendor number is assigned automatically. 3. In the Name field, enter The Arkansas Department of Revenue. 4. In the Search name field, enter AR tax. 5. In the Group field, click the arrow to select 70. 6. Click the Payment tab. 7. In the Term of payment field, use the arrow to select M15. 8. In the Method of payment field, use the arrow to select USAUSD_CHK. 9. Close the Vendor form.
6-48
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Set up a sales tax settlement periods: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax settlement periods. 2. Press CTRL+N to insert a line. 3. In the Settlement period field, enter AR. 4. In the Description field, enter Arkansas Monthly. 5. In the Authority field, click the arrow to select ARA-Arkansas Authority. 6. In the Terms of payment field, use the arrow to select M15. 7. Click the General tab. 8. In the Period interval field, use the arrow to select Months. 9. In the Number of units field, enter 1. 10. Click the Periods tab. 11. If a new line is not available, press CTRL+N to add a line. 12. In the From date field, enter 06/01/2008. 13. In the To date field, enter 06/30/2008. 14. Click the New period button twice to create two additional months. 15. Close the Sales tax settlement periods form. Set up sales tax codes and sales tax code intervals for Arkansas and Little Rock: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax codes. 2. Press CTRL+N to add a line. 3. In the Sales tax code field, enter ALL_ARST. 4. In the Name field, enter Arkansas State - All. 5. In the Settlement period field, click the arrow to select AR. 6. In the Ledger posting group field, click the arrow to select ARST. 7. Click the Values button. 8. Edit the existing line. 9. In the Minimum limit field, enter 0.00. 10. In the Upper limit field, enter 0.00. 11. In the Value field, enter 2.00 for the percentage. 12. Close the Values form. 13. Repeat steps 2 through 6 for Little Rock and enter ALL_LRCITY. 14. Click the Values button. 15. Edit the existing line.
6-50
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
25. Close the Sales tax codes form. Set up a sales tax group: 1. On the Navigation Pane, click General ledger, then click Setup, then click Sales tax, and then click Sales tax groups. 2. Press CTRL+N to add a line. 3. In the Sales tax group field, enter ARLRA. 4. In the Description field, enter Arkansas and Little Rock. 5. In the Sales tax group setup field, select Sales tax codes. 6. In the Rounding by field, select Sales tax codes. 7. Click the Setup tab. 8. In the Sales tax code field, select ALL_ARST. 9. Press CTRL+N to add a line. 10. In the Sales tax code field, select ALL_LRCITY. 11. Close the Sales tax group form. 12. On the Navigation Pane, click General ledger, click Setup, click Sales tax, and then click Item sales tax groups. 13. On the Overview tab, click the line. 14. Click the Setup tab. 15. Press CTRL+N to add a line. 16. In the Sales tax code field, use the arrow to select ALL_ARST. 17. Press CTRL+N to add a line. 18. In the Sales tax code field, use the arrow to select ALL_LRCITY. 19. Close the form. Record the invoice in an accounts payable invoice journal: 1. Click Accounts payable, click Journals, click Invoices, and click Invoice journal. 2. Press CTRL+N to add a line. 3. Click the Name field, and select APInv. 4. Click the Setup tab, and make sure that the Amount incl. sales tax check box is not selected.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-51
6-52
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Challenge Yourself!
Help Ken find the two forms within Microsoft Dynamics AX 2009 that can specify whether the journal amounts include sales tax.
Step by Step
Follow these steps: 1. On the Navigation Pane, click General ledger, then click Setup, and then click Parameters. 2. Click the Sales tax tab. 3. In the Amount incl. sales tax field, select the field. 4. Close the form. 5. On the Navigation Pane, click General ledger, then click Setup, then click Journals, and then click Journal names. 6. Click the General tab. 7. In the Amount incl. sales tax field, select the field. 8. Use the GenJrn journal. 9. Close the form.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-53
1. Click General ledger, then click Periodic, then click Sales tax payment, then click Sales tax payment. 2. In the Settlement period list, select the settlement period for when the sales tax payment is being calculated. 3. In the From date field, enter the first day of the sales tax settlement period to be calculated. This corresponds to the date in the From date field on the Sales tax settlements period form. 4. In the Transactions date field, enter the date for when the sales tax report is calculated. The default value is the system date. However, you can change this date. For example, if you enter the end date of the settlement period, the sales tax payment calculates for all transactions that are posted in the settlement period.
6-54
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Procedure: Run a Sales Tax Payment Report- Using the Update Check Box
The settlement calculation only includes the sales tax that you have not yet paid to the sales tax authority. You can make several payments for a single period. Follow these steps to enter additional information when you run a Sales Tax Payment Report: 1. To post the settlement automatically, specify a number sequence for the sales tax payment voucher on the Number sequences tab in the General ledger parameters form. 2. If you create a vendor account for the sales tax authority on the settlement period, a vendor transaction is created automatically when you select the Update check box and then click OK. If you do not specify a vendor account, you must create a payment to the sales tax authority manually to pay the sales tax you owe for the settlement period. 3. To run the Sales tax payment report without posting it to check the status of the outstanding sales taxes, run the report with the Update option deselected. 4. Click OK to run the report.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-55
HINT: To report the sales tax payment correctly to the sales tax authority, select the correct report format in the Report Layout list on the Sales Tax Authority form.
HINT: Click General ledger > Reports > Transactions > Periodic > Sales tax list to print a report about sales tax postings that you have not yet updated.
Procedure: Revise the Sales Tax Amount on a Transaction Before Posting - Select Revision Type
Follow these steps to revise the sales tax amount: 1. Select one of the three types of revisions: o Enter a correction of the sales tax amount in the Adjusted amount field for a selected sales tax code line on the Adjustment tab. This amount appears in the Adjusted amount in total field at the top of the form. o Enter an adjustment amount in the Adjusted amount in total field if the transaction has several sales tax code lines. This amount distributes among the sales tax code lines that appear in the Temporary sales tax transactions form. o Enter adjustments to the use tax amount in the Adjusted sales tax charge field if the sales tax code line applies to use taxes on the Adjustment tab. View the original use tax for the sales tax code line in the Sales tax charge field.
6-56
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
NOTE: Create a posting profile for the purpose of posting sales tax on prepayments in Accounts receivable > Setup > Posting profiles in the Posting profiles form. Then select the appropriate ledger account on the Setup tab in the Sales tax prepayments list. 4. Select the Prepayment check box on the Payment tab when you post a prepayment through a journal. If you omit this step, the sales tax posts incorrectly. 5. When you create a sales invoice and settle the prepayment, an automatic transaction on the sales tax prepayments account offsets the first temporary sales tax transaction.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-57
6-58
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-59
If the invoice has sales tax exemptions, it groups the transactions according to sales tax exempt descriptions.
6-60
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
1. Click General ledger, then click Setup, then click Sales tax, then click Sales tax exempt codes. 2. Press CTRL+N to create a new sales tax exempt code and then enter the Exempt code and the Description. Close the Sales tax exempt code form. 3. Open General ledger, then click Setup, then click Sales tax, and then click Sales tax group. On the Setup tab, select the sales tax code that you want to use, select the Exempt check box and select an exempt code in the Exempt code list. The description of the sales tax exemption prints on the same line as the exempt code. Close the form. 4. Open General ledger, then click Setup, then click Sales tax, and then click Sales tax code. Select the sales tax code that you checked as exempt on the Sales tax groups form in the Setup tab in step 2 of this process. 5. Click Print code in the Print list in the Sales tax code form on the General tab to print the sales tax exemption description in trade documents. The print code and the sales tax rate do not print on the sales tax specification line because several sales tax codes with different sales tax rates may be involved.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-61
NOTE: You also can print sales tax exempt rates on interest notes and collection letters. Select the Print sales tax exempt number on interest notes and collection letters check box in Accounts receivable > Setup > Forms > Form setup > Interest notes/collection letter tabs.
NOTE: You can set up tax exempt numbers for customers and vendors in the Customers or Vendors form on the Setup tab.
6-62
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Challenge Yourself!
Set up the sales tax system so that, when you use tax codes that are marked exempt in the tax system, the Exempt code prints on invoices. Create a new sales tax code named Exempt. Use the Settlement periods, Ledger posting groups, and Sales tax groups already set up in the data for California. Use the following data: Field Settlement period Ledger posting group Sales tax group Customer Item number Exempt code Description Data value CA CAST CA 9100 1000 Subsidiary Sales to Subsidiary
Step by Step
Follow these steps: 1. Click General ledger, then click Setup, then click Sales tax, then click Sales tax exempt codes. 2. Press CTRL+N to create a new sales tax exempt code and then enter Subsidiary in the Exempt code field and Sales to Subsidiary in the Description field. Close the Sales tax exempt code form.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-63
6-64
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-65
6-66
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Follow these steps to set up withholding tax in Accounts Payable and General Ledger: 1. Click Accounts Payable, and then click Vendors. 2. Select the Calculate withholding tax check box and a withholding tax group to start the calculation when you enter a payment in a journal on the Setup tab.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-67
6-68
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Summary
The requirements for tax calculation and tax reporting differ greatly for different countries. Therefore the tax module of a true international ERP system must be comprehensive. In Microsoft Dynamics AX 2009, the tax module offers many different options for tax calculation, posting, and reporting. The features include: Percentage calculation Fixed tax amounts Tax on tax EU tax Tax exemption Packing duty Multiple tax calculation Flexible settlement periods Country-specific tax reporting and additional options
For EU countries, special EU statistic reports such as Intrastate and EU sales list are also available.
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-69
2.
3.
6-70
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Solutions
Ledger Posting Groups
Test Your Knowledge
Each ledger account can use several tax codes. True or False? () True ( ) False Changes that you make to the ledger account numbers in ledger posting groups only affect ____. ( ) Posted transactions ( ) Deleted transactions () Not yet posted transactions ( ) Posted transactions from previous months Before creating ledger posting groups, you must create a(n) _________ in the General Ledger to link to ledger posting group. ( ) Tax Group ( ) Sales Tax () Account ( ) Group
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-71
6-72
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement
6-73
6-74
Microsoft Official Training Materials for Microsoft Dynamics Your use of this content is subject to your current services agreement