tax direction result journal

(0) Share

Report

Posted on by agus

1,174

hi expert,

i am facing issue about Tax direction & already reviewed on https://community.dynamics.com/ax/f/33/t/263781 forum, i did setup as follows :

in GL parameter, I ticked "tax direction requirement"

I have ledger posting group setup as shown below :

sales tax payable : 222100

sales tax receivable : 130750

for Asset account, i setup as shown below:

already choose "purchase"

i did GL entry for asset transaction (credited) with tax as shown below

expected result system will hit to "sales tax receivable : 130750", but system still hit to " sales tax payable : 222100"

am i still have missing setup ?

*This post is locked for comments

I have the same question (0)

All responses (17)

Answers (0)

Sort by

Suggested answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report
Copy link

Link copied!

Hello agus,

You tested this in the USMF demo company which uses a US sales tax regime.

Can you try to setup something similar for a company under a VAT regime, such as DEMF?

Many thanks,

Ludwig

Was this reply helpful? Yes No
agus 1,174 on at

Like (0)

Report
Copy link

Link copied!

Hi ludwig,

thanks for your respose, i try on DEMF company & make similar setup as USMF, but result still same

Was this reply helpful? Yes No
Suggested answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report
Copy link

Link copied!

Hello Agus,

I do not see a problem with this transaction.

Why?

You debit your bank account with $4000 and credit your fixed asset.

In other words, you sell the fixed asset.

As a result, you have to pay the tax from the money that you receive to the tax authority.

That is why the sales tax payable account is used and posted with a negative sign as a credit.

What is it that you expect to post?

Best regards,

Ludwig

Was this reply helpful? Yes No
agus 1,174 on at

Like (0)

Report
Copy link

Link copied!

hello ludwig,

i'm expecting system will hit to sales tax receivable account, because in main account has chosen "purchase" on sales tax direction dropdown list.

is that the function of the tax direction (can override destination of sales tax account) ?

give me an enlightenment pls

Was this reply helpful? Yes No
Suggested answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report
Copy link

Link copied!

Hello Agus,

I think your posting is not right.

You did not purchase but sell the asset.

Have you opened the posted sales tax form from the voucher that you shared above?

What do you see there?

Best regards,

Ludwig

Was this reply helpful? Yes No
agus 1,174 on at

Like (0)

Report
Copy link

Link copied!

hi ludwig,

yes my transaction was reversed the transaction of FA, but for sales tax account i want to reversed to previous sales tax receivable account similar as acquisition for the first time i entered.

here is the sales tax posted.

Was this reply helpful? Yes No
Ludwig Reinhard Microsoft Employee on at

Like (0)

Report
Copy link

Link copied!

Hello Agus,

Based on the setup and transaction posted, I cannot see a problem with the voucher and tax transaction created.

Did you try to sell the fixed asset?

I currently do not understand why the tax direction field is that important to you and what you try to achieve actually.

Would be great if you could explain in depth.

Many thanks,

Ludwig

Was this reply helpful? Yes No
agus 1,174 on at

Like (0)

Report
Copy link

Link copied!

hi ludwig,

my transaction as follows :

1. first time create GL entry with debited side as acquisition & using sales tax. once posted system will create journal :

asset account (dr)

sales tax receivable account (dr)

bank (dr)

2. then realize that transaction was wrong. i need to reversed back & input acquisition in credited side. once posted system will create journal :

asset account (cr)

sales tax payable (cr)

bank (dr)

my question is, when i did point 2, can i hit to sales tax receivable account ? not to sales tax payable account.

Was this reply helpful? Yes No
Suggested answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report
Copy link

Link copied!

Hi agus,

I do not think that you can hit the 'sales tax receivable' account because it would be wrong from an accounting perspective.

If you create a transaction and reverse it, you should reverse it in the same way as you created it.

Otherwise, things get really messed up and nobody will be able to reconcile taxes.

You can adjust that. Yet when doing that you might get into trouble with the accounting team.

Best regards,

Ludwig

Was this reply helpful? Yes No
agus 1,174 on at

Like (0)

Report
Copy link

Link copied!

morning ludwig,

it means, it useless if i use "tax direction" for my case ?

If you create a transaction and reverse it, you should reverse it in the same way as you created it==> i did same way, only changed from debited to credited amount.

so what is the concept of "tax direction" in ax ?

Was this reply helpful? Yes No