When my client receives an invoice from a shipping company for imported goods, there is a separate line charging for Customs VAT (Value-added Tax). When creating the Purchase Order, how can I enter this line as a full VAT amount, in order for the whole amount to be only included in my VAT total for the Purchase Order.
In other words, I want to be able to enter a line on the PO which is just VAT and in turn will be going to the appropriate VAT Control account.
Is this possible or any way of handling such charges?
You can add new lines or charges on the purchase order, but it will not be recognized as 100% VAT.
You can consider having the amount posted on a suspension account. Then by use of a general journal you can post the balance of this account to the VAT control account by providing Tax group, Item tax group AND Tax code. The last addition (Tax code) will have AX look at that line considered as 100% VAT. You can check the Tax prior to posting.
André Arnaud de Calavon | Microsoft Dynamics AX Solution architect | My blog | My company
This post is my own opinion and does not necessarily reflect the opinion or view of my company, Microsoft, both its employees, or other MVPs.
My suggestion would be consider applying Misc. Charges at Line level, related to your requirement.
Please verify and update if it is fine for scenario.
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When you record the shipper's invoice, what is the reason you are using a purchase order and not an AP Invoice Journal?
Is the invoice provided by the shipper include 'items' you have to pay for?
In the AP invoice journal form, you have that exact feature, you can have a line that is posted fully as a VAT amount (select value on the 'Sale Tax Code' field).
As a best practice, non-item related invoices are more easily entered on a journal and not on a purchase order as they provide far bigger flexibility.
Zvika Rimalt * Dynamics AX Business Analyst/Functional Consultant * Vancouver, BC, Canada
Usually a purchase order will be created for cost control. You want to know which costs you can expect. Especially when the number of shipments are large. You then want to match the known shipments.
The way the OP described the scenario, they do not know in advance how much the shipper will bill them before they send the invoice (which is typical with a shipper) - so I am not sure using a PO is helpful in this case.
In any case, if they have to use a PO, they can create a VAT tax code for 100%, and use it for the "VAT line"