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Invoice journal shows GST amount for GST code setup at 0%

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Posted on by Dhanshri

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Hi All,

I am creating Vendor invoice journal from AP>Journal>Vendor Invoice Journal

While creating journal I am selecting Ledger as Account Type and Account number as main account which is set as GST receivable/Payable accounts. When I select GST group , Item sales tax code it doesn't calculate GST amount but when I select GST Tax Code it takes amount enter in debit as GST amount.

I have checked the GST tax code setup and the percentage is set as 0 so ideally it should not calculate GST amount but somehow it is taking entered amount on journal lines. When I select Account type as Vendor then it doesn't calculate GST amount with same TAX code and group combination.

Can you please let me know what could be the reason for this?

Thanks in advance.

Thanks,

Shri

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Dhanshri 515 on at

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RE: Invoice journal shows GST amount for GST code setup at 0%

Hi Ludwig,

System behavior was weird when i was testing it. Inittially it was calculating GST amount for single line and then it started showing 0 GST amount without adjusting GST amount.(May be some data refresh issue or restarting AX services helped)

Due to this behavior, we thought of checking TAX transaction- Detail report to check if it is showing all data correctly or not.

Based on report output it seems for vendor invoices instead of taking GST account related tax information from TAX trans table it fetches "Profit & loss" account line info which result in showing wrong amount and journal voucher under wrong GST code. Why the GST is getting calculated for non GST input account?

While for single line journal it is showing correct info of GST code and amount.

I don't understand the financial purpose behind the logic. All code is standard code only.

I have posted separate question for this.Here is the link-

community.dynamics.com/.../898191

Can you please help?

Thanks ,

Shri

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Dhanshri 515 on at

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RE: Invoice journal shows GST amount for GST code setup at 0%

Thank you so much Ludwig! :)

I will convey same to the customer.

Thanks,

Shri

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Ludwig Reinhard Microsoft Employee on at

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RE: Invoice journal shows GST amount for GST code setup at 0%

Hello Shri,

I double checked that on my machine and noticed that the sales tax will be posted with the amount recorded even if a 0% rate has been entered.

To overwrite / change that you can change the sales tax before posting the journal.

This results in a posting made on the sales tax ledger account but not in the tax trans.

I attached you some screenprints from my replication process below.

Best regards,

Ludwig

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Dhanshri 515 on at

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RE: Invoice journal shows GST amount for GST code setup at 0%

Hi Ludwig,

AX version is Ax 2012 FP. Client is from Singapore.

Below is the tax code setup-

Ledger posting group:-

GST group:-

Item GST Group:-

Below is the entry created in GL->Journal->General journal

Thanks,

Shri

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Ludwig Reinhard Microsoft Employee on at

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RE: Invoice journal shows GST amount for GST code setup at 0%

Hi Shri,

Can you share details of your tax code setup and information on your system version? I can then try replicating this in my demo machine.

Ludwig

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Dhanshri 515 on at

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RE: Invoice journal shows GST amount for GST code setup at 0%

Hi Ludwig,

Ideally it should be in this way only but in my scenario even though tax rate is 0 it is showing non zero GST amount.

I double checked the setups. Is there any configuration which could be setup wrong in this case (other than tax rate) if it is calculating tax amount?

Thanks ,

Shri

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Ludwig Reinhard Microsoft Employee on at

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RE: Invoice journal shows GST amount for GST code setup at 0%

Hello Shri,

If you select a GST code in the journal the GST amount will only be $0, if the tax rate is set to 0%.

Best regards

Ludwig

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Dhanshri 515 on at

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RE: Invoice journal shows GST amount for GST code setup at 0%

Thanks Ludwig! I am technical person and was not aware of this case but in our scenario also the ledger account no. which we are selecting is gst receivable/ payable account.when we select this account then only it ask us to enter get code and vice versa.

It seems my case is direct tax scenario,in this case how we can allow system to select the gist code but show 0 as gst amount?

Thanks,

Shri

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Ludwig Reinhard Microsoft Employee on at

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RE: Invoice journal shows GST amount for GST code setup at 0%

Hello Shri,

When you record a journal line and post it directly with a sales tax code selected a tax posting is made.

You typically see this when you receive invoices e.g. from Fedex that have import taxes, or other kind of direct taxes included and that need to be incorporated into your GST report.

The only prerequisite for making this posting is that you select a ledger account that is setup as a sales tax account and that you select the tax code in the journal lines.

Do you have such kind of direct tax scenarios where another party (UPS, Fedex, etc.) does the tax handling and the payment of the import/sales taxes for you and then sends you an invoice for that?

Best regards,

Ludwig

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Dhanshri 515 on at

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RE: Invoice journal shows GST amount for GST code setup at 0%

Hi all,

Anybody can please give pointer for this issue? Today we posted general journal for ledger account type and offset type with same tax combination.it calculated tax amount same as debit amount.we haven’t done any customization.Our client is from Singapore and GST process is std one.version is ax 2012 FP

Thanks,

Shri

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