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Dynamics AX Updates

Setting up Dynamics AX Tax for Reporting

Dynamics AX Tax groups

Use the Sales tax groups form to set up the sales tax groups. The sales tax groups are assigned to companies, and the Dynamics AX taxes are calculated based on the Dynamics AX Tax codes that are in effect when transactions occur.

  • GST – Use this group for companies that are subject to the standard tax.
  • Exempt – Use this group for companies that give certain financial services or the sale and lease of residential properties. The Sales tax is not charged for these types of supplies.
  • Zero-rated – Use this group for companies that have a special trade agreement. The export of goods and the provision of international services are nothing but zero-rated supplies.
  1. Click the General ledger > Setup > Sales tax > Sales tax groups.
  2. Press CTRL+N to create the new sales tax group.
  3. In the Sales tax group field, enter the name, such as GST, and then enter general information about the sales tax group.
  4. Click the Setup tab. Press CTRL+N.
  5. In the Sales tax code field, choose a sales tax code to add to the sales tax group.
  6. Repeat the steps 2 through 5 to set up additional sales tax groups.
  7. Close the form to save your changes.

Dynamics AX Tax Codes

Use the Sales tax codes form to set up the Dynamics AX Tax codes for items that are taxed using the standard goods and services tax percentage. You can also use this form to set up the Dynamics AX tax codes for exempt items that are not subject to tax and items that have special trade-zone status for which the tax rate is 0%.

  1. Click to the General ledger > Setup > Sales tax > Sales tax codes.
  2. Press CTRL+N to create a new tax code.
  3. In the Sales tax code field, enter a code, such as GST, and then enter other data about the sales tax code.
  4. Click the Calculation FastTab.
  5. In the VAT type field, choose the type of tax to calculate, based on the type of item to which the tax is applied.
  6. Click Values to open the Values form. Enter dates for which the tax code is in effect.
  7. In the Value field, enter one of the below values:
    • For standard items, enter the current tax percentage.
    • To exempt items, do not enter a value.
    • For zero-rated items, enter 0.00.
  8. Repeat the steps 2 through 7 to set up additional tax codes.
  9. Close the form to save your changes.

Sales Tax Payment

Use the Sales tax payment form to calculate the sales tax payment and print the GST F5 report.

  1. Click to the General ledger > Periodic > Sales tax payments > Sales tax payments.
  2. In the Settlement period field, choose a sales tax settlement period that is set up for the IRAS tax authority.
  3. In the From date field, choose the earliest date to include transaction sales tax amounts in the calculation. For example, to make the sales tax payment for the quarter beginning January 1, enter January 1.
  4. In the Transaction date field, choose the last day of the period that you are calculating taxes for. For example, enter March 31.
  5. To create the vendor transaction for the sales tax authority assigned to the sales tax settlement period, select the Update check box.
  6. Click OK. The sales tax payment is calculated, and the GST F5 Goods and the Services Tax Return report is printed.

Transactions that are subject to the sales taxes must be associated with both a sales tax group and an item sales tax group. Sales tax is calculated only for the sales tax codes that are added in both the sales tax group and the item sales tax group.

  1. Click to the General ledger > Setup > Sales tax > Sales tax codes.
  2. Create sales tax codes.
  3. Optional: If your legal entity operates in the United States, you can set up sales tax jurisdictions in addition to sales tax codes, and attach sales tax jurisdictions to sales tax groups. Sales tax codes are attached to a sales tax group through the sales tax jurisdictions.
  4. Optional: If you will receive sales tax information through a web service, map the sales tax codes that are used by vendors to the sales tax codes in Microsoft Dynamics AX.
  5. Click to the General ledger > Setup > Sales tax > Sales tax groups. Include sales tax codes to the sales tax groups.
  6. Add sales tax groups to each customer and vendor account, and to main accounts to which purchase or sales transactions that do not involve a customer or vendor account are posted.
  7. Click to the General ledger > Setup > Sales tax > Item sales tax groups.
  8. Including default item sales tax groups to items and ledger accounts:
    • Include a default item sales tax group for purchase orders and sales order to each item.
    • Include a default item sales tax group to the ledger accounts to which purchase or sales transactions that do not involve inventory items are posted.

    An appropriate item sales tax code is then proposed as the default sales tax code on all sales order, purchase order, and the journal lines when you enter the item or the ledger account.

Create the Sales Tax Code Based on another Sales Tax Code

  1. Click to the General ledger > Setup > Sales tax > Sales tax codes.
  2. Click New to create a sales tax code.
  3. Enter information in the required fields.
  4. On the Calculation FastTab, in the Origin field, choose Percentage of sales tax.
  5. In the Sales tax on sales tax field, choose the code for the sales tax on which to calculate sales tax.

    Important: Do not choose a sales tax code for which Percentage of gross amount is selected in the Origin field. Otherwise, the gross amount will add sales tax on the Dynamics AX Tax amount and Dynamics AX Tax on the sales tax amount.

  6. Enter or select information in the other fields.

Add the sales tax code to a sales tax group

  1. Click to the General ledger > Setup > Sales tax > Sales tax groups.
  2. Choose the sales tax group to assign the sales tax code to.
  3. On the Setup FastTab, click Add.
  4. Choose the sales tax code that you created in the previous procedure. The group must also add the sales tax code that you selected in the Sales tax on sales tax field in the previous procedure.

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