How do I include calculated sales tax in the acquisition price of a fixed asset?

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I'm creating fixed asset PO's in AX 2012 with an applicable tax amount, but once I receive the asset and invoice the PO, the asset value in the fixed asset's module is not reflecting the item cost + tax. We have a requirement to include both against the asset, while also being able to report how much of the actual purchase was attributed to tax.

Example:

Single line PO where item = $100. Tax rate 7% ($7). PO total = $107

(receipt)

(invoiced)

Fixed asset Book Value = $100

Cans someone please help me with this?

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Ludwig Reinhard Microsoft Employee on at

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Hi KyleE, Are you operating in a European Vat tax system or in a US\US-like sales tax system? How did you setup the tax code that is used for your PO? Maybe you can post some screen prints. Ludwig

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Hi Ludwig.

We are US based sales tax system. We are not connected to a tax system like Vertex, so we are using a rudimentary tax system for PO's - created generic percent based sales tax codes. I've included screen shots for everything below.

Sales Tax Code

Sales Tax Group

Item Sales Tax Group

Ledger Posting Groups

Sales Tax Jurisdictions

Sales Tax Authorities

PO (showing tax assignments)

PO Accounting Distributions

Accounting Distributions

Sub ledger Journals

Fixed Asset

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André Arnaud de Cal... 301,037 Super User 2025 Season 2 on at

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Hi KyleE,

On the Tax code values form there is a field Tax Exempt pct. If you create a new tax code using a value and set the exempt pct to 100, then 100% of the sales tax will be usually posted as cost amount. This should also work for Assets. You need also another Sales Tax Group and/or Sales Tax Item Group to be able to use this code on the groups selections.

Test this and also verify it against the US system as I'm not an expert on the US taxing rules.

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Hi Andre. That appears to have worked. It is now booking the tax to the same GL as the item, which is what we want. Question for you - because our tax group needs to see the break between what purchase price and tax amounts, is there a way to see the break via reporting or would this be done back end through SQL? I want to ensure that there would be something to indicate tax in the tables to show the breakout if it's all going to same account.

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André Arnaud de Cal... 301,037 Super User 2025 Season 2 on at

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Hi KyleE,

I don't have an environment where I currently can review your latest question. I thought some details were visible in the Tax transactions related to the voucher.

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Ludwig Reinhard Microsoft Employee on at

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Hello KyleE,

If you follow the approach that Andre suggested then you will see the total costs at the fixed asset level.

In order to differentiate between the "net" and "tax" amount you can use Standard AX reporting/inquiry tools as the tax amount is recorded with the posting type "sales tax" whereas the net amount is recorded with the posting type "fixed asset, debit". If you either run an inquiry, Report or Management Reporter Report that refers to the posting type you will get the differentiation you need.

Best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Hello KyleE,

Is this one still open or have you been able to get this fixed?

Ludwig

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