Below is the information that I want to implement in AX 4.0 , but I haven't
familiar with it , can anybody give the detailed operation steps in AX? Thx .
General Information:
1.1 Introduction:
In addition to the normal creation of invoices in AX, a Tax Invoice should
be generated when Tax is realized. A Tax invoice is exactly the same as a
standard invoice in AX except that it has the word “Tax” added to the header
thus the header will display “Tax Invoice” instead of Invoice.
Realization of TAX
Goods
On the purchase or sale of goods, TAX is realized at the time of invoicing
and a Tax invoice must be created at this time.
Services
On the purchase or sale of services, TAX is not realized at time of
invoicing and no Tax Invoice is created. However, a Tax Invoice is required
at the time payment is made or received for the services. During payment, the
unrealized TAX entry is posted. The system recognizes a service item from the
Item Type “Service”.
Foreign Currency Transactions
When a purchase or sales transaction is made in a foreign currency, the TAX
base amount must be recorded in local currency (RMB). If the TAX is realized
in the same month (services)/ at the same time (invoices) as the foreign
currency invoice is created, there is no need to adjust the TAX amount using
the exchange rate prescribed by the Bank – Government exchange rate.
If the TAX for the foreign currency transaction is realized in a different
period from the original invoice then the TAX amount must be taken by
reference to the Bank exchange rate. A TAX Settlement Exchange Rate
Adjustment batch job is run to adjust the TAX amount using the Bank exchange
rate.
The system takes the realized TAX entries for adjustment. It matches the
unrealized entry and the realized entry and determines if they occur in the
same month.
1.2 Pointers for New Tax:
For availing the New Tax claim, following points should be kept in mind
• Both the Seller & purchaser should be registered with the Tax Authorities.
• Tax invoice should be present i.e. Invoice should clearly state that it is
a Tax invoice & should be shown separately. If Tax amount is included in the
Sale Price, then it cannot be availed.
2 Master Setup required
2.1.1 Setup Scenario
(The following setup is used throughout this document)
1. The user creates the Sales tax code for new tax. He\she creates a new
Sales tax code of “TH_SERV”.
2. The user adds the new Sales tax code to the Sales tax in the Setup tab of
the Sales tax group form. (General ledger > Setup > Sales tax > Sales tax
groups)
3. The user creates an Item sales tax group for Services in the Item sales
tax group form (General ledger > Setup > Sales tax > Item sales tax groups)
4. Create a new posting ledger account field, the user can specifies the
account that new TAX is posted to in the General tab of the ledger posting
groups (General ledger > Setup > Sales tax > Ledger posting groups)
5. The user creates the Number sequence of “Tax Invoice Id” for sales and
purchase Tax Invoices in the G/L parameters form. The Number sequence will
used for tax invoice id number create. (General ledger > Setup > General
ledger parameters > Number Sequences)
3 Transactions
3.1 Overview
Exchange Rate Table
Exchange rates from US$100 to RMB:
Date Standard
Rate in AX Government Rate
01/01/06 100 125
01/02/06 120 145
01/03/06 140 165
3.2 Services Purchase Transaction
Purchase of Consulting Services
On 01/01/06 Consulting Services are purchased for US$1,000. Tax is 7%. The
user posts the transaction and the following entries are created:
Account DR CR
Purchase – Consulting 100,000
Unrealized TAX 7,000
Accounts Payable 107,000
TAX Exchange Adjustment
On 10/02/06 the user runs the TAX Exchange Adjustment batch job. The
following parameters are entered in the batch job:
Date of settlement: 31/01/2006
Posting date: 10/02/06
Government exchange rate: checked
Daily option: checked
Date of rate: blank
The following entries are created:
No Entries Generated
TAX Payment
On 10/02/06 after running the TAX exchange Adjustment batch job, the user
runs the TAX Payment batch job with the following parameters:
Settlement Period: CA
From Date: 01/01/06
Transaction Date: 10/02/06
Sales Tax Payment Version: Original
Update: Check
The following entries are generated:
No Entries Generated
Input TAX Report
On 10/02/06 after running the TAX payment batch job, the user will print the
Input TAX Report which shows the following:
TAX base amount: 0
TAX: 0
Total: 0
Payment of the Service
On 15/02/06 full payment is made for the purchase of the Consulting
Services. The user posts the transaction and the following entries are
created:
Account DR CR
Accounts Payable 107,000
Bank 128,400
TAX 7,000
Unrealized TAX *7,000
Realized Exchange Rate Loss 21,400
Note: Tax Invoice Generated
TAX
*TAX for Consulting = [(100,000/100,000) * (100,000)] * 7% = 7,000
Formula used to calculate TAX:
Line TAX = [(Payment Amount/Total Invoice amount (including TAX)) X (Line
Base Amount (excluding TAX)) X TAX Percentage]
Total TAX = Sum of each TAX line
TAX Exchange Adjustment
On 15/03/06 the user runs the TAX Exchange Adjustment batch job with the
following parameters:
Date of settlement: 28/02/2006
Posting date: 15/03/06
Government exchange rate: checked
Daily option: checked
Date of rate: blank
The following entries are created:
Account DR CR
TAX 3,150*
Realized TAX Exchange Gain 3,150
TAX Payment
On 15/03/06 after running the TAX Exchange Adjustment batch job, the user
runs the TAX Payment batch job with the following parameters:
Settlement Period: CA
From Date: 01/02/06
Transaction Date: 15/03/06
Sales Tax Payment Version: Original
Update: Check
The following entries are generated:
Account DR CR
TAX Settlement 10,150*
TAX 10,150
Input TAX Report
On 15/03/06 after running the TAX payment batch job, The user will print the
Input TAX Report which shows the following:
TAX base amount: 145,000
TAX: 10,150
Total: 155,150
3.3 Services Sale Transaction
Sale of Consulting Services
On 01/01/06 Consulting Services are provided to your customer for US$1,000
(excluding TAX). TAX is 7%. The user posts the transaction and the following
entries are created:
Account DR CR
Accounts Receivable 107,000
Sale – Consulting Services 100,000
Unrealized TAX 7,000
TAX Exchange Adjustment
On 10/02/06 the user runs the TAX Exchange Adjustment batch job with the
following parameters:
Date of settlement: 31/01/2006
Posting date: 10/02/06
Government exchange rate: checked
Daily option: checked
Date of rate: blank
The following entries are created:
No Entries Generated
TAX Payment
On 10/02/06 after running the TAX Exchange Adjustment batch job, The user
runs the TAX Payment batch job with the following parameters:
Settlement Period: CA
From Date: 01/01/06
Transaction Date: 10/02/06
Sales Tax Payment Version: Original
Update: Check
The following entries are created:
No Entries Generated
Output TAX Report
On 10/02/06 after running the TAX payment batch job, The user will print the
Output TAX Report which shows the following
TAX base amount: 0
TAX: 0
Total: 0
Receipt of Payment
On 15/02/06 you receive a cheque for US$1,070 in settlement for full
payment. The user posts the transaction and the following entries are created:
Account DR CR
Bank 128,400
Accounts Receivable 107,000
Unrealized TAX 7,000
TAX *7,000
Realized Exchange Rate Gain 21,400
Note: Tax Invoice Generated
TAX
*TAX for Consulting = [(100,000/100,000) * (100,000)] * 7% = 7,000
Formula used to calculate TAX:
Line TAX = [(Payment Amount/Total Invoice amount (including TAX)) X (Line
Base Amount (excluding TAX)) X TAX Percentage]
Total TAX = Sum of each TAX line
TAX Exchange Adjustment
On 15/03/06 The user runs the TAX Exchange Adjustment batch job with the
following parameters:
Date of settlement: 28/02/2006
Posting date: 15/03/06
Government exchange rate: checked
Daily option: checked
Date of rate: blank
The following entries are created:
Account DR CR
Realized Exchange Rate Loss 3,150
TAX 3,150
TAX Payment
On 15/03/06 after running the TAX exchange Adjustment report, The user runs
the TAX Payment report with the following parameters:
Settlement Period: CA
From Date: 01/02/06
Transaction Date: 15/03/06
Sales Tax Payment Version: Original
Update: Check
The following entries are generated:
Account DR CR
TAX 10,150
TAX Settlement 10,150
Output TAX Report
On 15/03/06 after running the TAX payment batch job, The user will print the
Ouput TAX Report which shows the following
TAX base amount: 145,000
TAX: 10,150
Total: 155,150
