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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Obamacare Medical Devi...
Microsoft Dynamics GP (Archived)

Obamacare Medical Device Tax solutions?

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Posted on by Jordan Taub 470

Has anyone in the Medical Device industry come up with or found a 3rd party solution to deal with the upcoming Obamacare Medical Device Tax?  I am unsure if the standard GP Tax system will handle this?

Our company would need to sort the tax by specific Item # and then apply it to a specific company and then collect the tax amounts in a GL holding account.  It would have to integrate with Sales order processing and product Return Credits.  We have thousands of domestic and foreign customers so we are looking for something that can be turned on and off quickly and applied locally and/or globally.  The tax can't be collected from the purchaser and cant be passed by invoice to that purchaser.  This is essentially a Manufacturers Tax.

If 3rd Party software is available, what is usuall implimentation time? - as the industry is trying to have the tax repealed and I would like to hold out as long as possible.

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  • Community Member Profile Picture
    Community Member on at
    RE: Obamacare Medical Device Tax solutions?

    We welcome Smile Design of Charleston all phobic, anxious, and special needs patients. Your visits with us are all about you, your happiness, your comfort and your dental health. Our patients expect and receive the finest care with a gentle touch each and every time they see us. The more you know, the better equipped you are to make wise decisions about your health care.

  • Jordan Taub Profile Picture
    Jordan Taub 470 on at
    RE: Obamacare Medical Device Tax solutions?

    Thanks for all your help.  Let me know at your leasure.

  • KevinD Profile Picture
    KevinD 215 on at
    RE: Obamacare Medical Device Tax solutions?

    True.  In our case, we don't use the Comissions for sales reps so we wouldn't have to worry about multiple Reps.  I  remember one time installing a third party product for commissions that was highly configurable, much more so that GP's out of the box commissions where this might be easier to manage.  I think it was called Ethos or soemthing like that.  Good luck.  If I get some spare time, I might be able to mess around and test something in my system.

  • Jordan Taub Profile Picture
    Jordan Taub 470 on at
    RE: Obamacare Medical Device Tax solutions?

    Hey Kevind,  I don't think it would work. When I have the Obama sales rep set up for the items and there are companies that should not be receiving the tax, they would be getting that rep automatically on the item.  What happens when I have Obama and Real sales rep?  Only way it could work is if Obama was manually added on each item on a SOP.  I feel there would be too much room for error.

    I'll look into it a little more.

  • Jordan Taub Profile Picture
    Jordan Taub 470 on at
    RE: Obamacare Medical Device Tax solutions?

    I hope not but it very well might be the case.  It would work identical as to how Dental Labs would have to handle the tax.

  • KevinD Profile Picture
    KevinD 215 on at
    RE: Obamacare Medical Device Tax solutions?

    I'm still thinking that it could be handled using commissions on sale as if there were a Sales Rep involved.  That Sales Rep just happens to be Obama.  That way you can accrue into a liability account (commissions payable) and it will not show up on the invoice.

  • Douglas Karel Profile Picture
    Douglas Karel 2,140 on at
    RE: Obamacare Medical Device Tax solutions?

    Thanks - I trying to get a better understanding here, but I am wondering if a doctor or in particular a dentist office purchases a medical device from outside of the US (I am thinking of my own dentist that had a 'mouth piece' manufactured by a company in Mexico for one of their patients).  I haven't looked to see if a 'mouth piece' is considered a medical device.  I would have to look at the FDA guidelines.  If it is, technically I am thinking the Dentist would be considered the importer of the product and would be subject to the tax.  I really have not looked into this that closely to see the exemptions, etc. or if I am way off base here.

  • Jordan Taub Profile Picture
    Jordan Taub 470 on at
    RE: Obamacare Medical Device Tax solutions?

    I have decided the best way to handle this for us is to run reports manually and not collect any tax via GP.  It is way too daunting.  I hope this tax is repealed.  Its already costing too much and screwing up my books.  Unless there is a feature that is integrated to GP that works exactly like the Tax module but allows for "collection tracking only to a specifict GL account" and doesn't advance the sales figures on the invoice or increase gross sales figures in standard reports, it's easier to do it manually.

  • Jordan Taub Profile Picture
    Jordan Taub 470 on at
    RE: Obamacare Medical Device Tax solutions?

    No the US manufacturer would be liable for the foreign sourced part.

  • Jordan Taub Profile Picture
    Jordan Taub 470 on at
    RE: Obamacare Medical Device Tax solutions?

    You would need to probably have two Item #'s set up. One for the Out-sourced part and one for the in house part.  Then set up alternative components for the Assemblage.  I feel that might be very manual.

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