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Hello everyoneThe company opens a new branch in another country in which it will have to provide VAT returns.How to add a branch in Ax 2012 in order to be able to separately register sales, purchase, and inter-warehouse copper invoices to the branch with the branch and headquarters?For the branch and we are sitting a separate sequence of numbers.
AX 2012 R2
You should create a new company (Legal entity) for this branch.
I can't do this in an existing company?
Normally you need to have at least one legal entity for every country where the company operates. This activates the country specific (and often legally required) functionalities for that country.
Since you want to sell and purchase in that country, you must be able to set up some VAT number that the company has in that country, as well as tax handling etc.
and this location does not allow me?
Organization administration \ Setup \ Organization \ Legal entities\Taxex\Tax registration
I would also create new tax codes for the new branch.
If you setup a branch in another country then you usually have to create a new legal entity, as Nikolaos mentioned.
Each country has different country specific regulations and reports that need to be created.
For that reason, it is a common business practice to setup a new legal entity.
Do you have any update for us?
Have you been able to get this issue sorted out and is your question answered?
I still wonder if it is possible to do it in 1 company. I understand that it is safer to do this as a separate company. Only for this company and branch needs to generate joint reports, e.g. turnover and balances, because this is one company
You can actually add multiple companies into a single legal entity in AX2012.
I am pretty sure that your processes will work.
What might, however not work is when it comes to reporting on legal issues.
That is, if you tax office or your auditors ask for a specific report for company A or company B.
Then you will have to adjust reports and get into trouble quickly.
That's why it is not a good practice to add multiple companies into a single legal entity.
Can you answer me how to configure the system to add such a branch from another country so that I can issue an invoice, for example?
If you are going to add another business unit then there are implications you should think through./test related to e.g. costing and mrp, and whether a new site or just a new warehouse is created,
To get a balance sheet by branch is not so straightforward without a separate company, and you might need to look into how to use balancing dimensions if you do.
Please have a look at magic1949's response.
In addition, you can add a branch as a new business unit and use the balanced financial dimension functionality in the ledger form in GL. This ensures that you can distinguish the different branches/companies by using the business unit findim.
There are, however, quite some obstacles, such as:
1. As you don't start with a fresh system but have already recorded transactions, how do you ensure that the current balances are correctly separated among branches/companies? You would need quite some initial adjustment postings.
2. What about cash / payment related issues if e.g. a customer pays for a specific branch? Then you have to ensure that you have the business unit findim posted with the transactions, which is fine for new transactions but probably not for existing open positions.
3. I already mentioned the auditing and tax considerations that you have to make
4. Another thing to think about are intercompany transactions that you have to record in a single legal entity.
There are certainly more things to think about.
I believe that everything can be handled if you put sufficient time and effort (money) into this.
The question is whether setting up a new legal entity isn't easier and cheaper at the end of the day...
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