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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Tax inclusive prices a...
Microsoft Dynamics AX (Archived)

Tax inclusive prices and Tax Exempt Customers using POS

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Posted on by Stephen Jeffery

I'm having trouble getting taxes to work correctly at the POS when I have tax inclusive prices and customer's who are tax exempt.

When I sell a Taxable product to a Tax exempt customer it removes the tax amount from the sale but it doesn't re-calculate the sell price to remove the tax amount. For example item price is $12.60 which includes tax amount of $1.15 and tax ex price of $11.45 but when I add the customer to the POS sale and use the item it just removes the tax amount of $1.15 and leaves the price of the item at $12.60 when it should be $11.45.

I have set the store so that the "Price includes Tax" field is ticked and have ticked "Use Customer based taxes".

I'm using R2 with Cu7 update and no matter how I change configuration can't seem to get the price and tax to recalculate properly.

Any help greatly appreciated.

Thanks

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  • Ian Nuttycombe Profile Picture
    Ian Nuttycombe 471 on at
    RE: Tax inclusive prices and Tax Exempt Customers using AX R2 POS

    Hi  Stephen,

    This is for an australian Customer i assume ?

    Are you using sales orders for the tax exmept customers ? as you have stated  you have turned on the price inc. Tax and use Customer based taxes.

    I would Review your AX tax Groups first to see if this is even needed unless you are working in an Airport type Environment.

    How are your base prices or price Groups setup ? inclusive or exclusive? this would be my first Point of reference.

    There are 2 known issues involving the settings you have mentioned

    Check the following KB articles

    Check these two KBs

    2909194

    2893298

  • Stephen Jeffery Profile Picture
    Stephen Jeffery on at
    RE: Tax inclusive prices and Tax Exempt Customers using AX R2 POS

    Ian yes it is for Australia and at this stage we have trade agreements setup to include the gst amount. We have an airport type environment where for some customers we need to sell ex gst but for the rest with gst.

    I tried to search for the above knowledge base articles but couldn't find them do you have the links?

    Thanks

    Stephen

  • Ian Nuttycombe Profile Picture
    Ian Nuttycombe 471 on at
    RE: Tax inclusive prices and Tax Exempt Customers using AX R2 POS

    HI Stehpen,

    In your customer group setup what default Tax group and price include GST settings do you have?

  • Stephen Jeffery Profile Picture
    Stephen Jeffery on at
    RE: Tax inclusive prices and Tax Exempt Customers using AX R2 POS

    Ian

    I have the default customer group set to the GST Free group and I have Price Includes sales tax ticked.

    As above any tips on finding the KB articles you mentioned I did a search on partner source etc but didn't find.

    Thanks

    Stephen

  • Ian Nuttycombe Profile Picture
    Ian Nuttycombe 471 on at
    RE: Tax inclusive prices and Tax Exempt Customers using AX R2 POS

    Hi Stephen, Numbers i used were internal

    Review the CU7 Release notes here

    mbs2.microsoft.com/.../kbdisplay.aspx

    The one you should Review is here

    mbs2.microsoft.com/.../kbdisplay.aspx

  • Community Member Profile Picture
    Community Member on at
    RE: Tax inclusive prices and Tax Exempt Customers using AX R2 POS

    Hi Stephen,

    As you'll probably know AX calculates tax based on WHO you are and WHAT you buy. The WHO has a sales tax group with 1 or more tax codes. The WHAT (normally) has an item sales tax group with 1 tax code (and there's also a WHERE but I leave this out for now ;-)). So in your scenarios:

    Scenario 1 - Taxable item/Taxable customer

    Customer sales tax group -> tax code X for 10%

    Item sales tax group -> tax code X for 10%

    Overlapping tax code X found -> 10% calculated

    Scenario 2 - Taxable item/Exempt customer

    Customer sales tax group -> tax code Y for 0% (exempt)

    Item sales tax group -> tax code X for 10%

    No overlapping tax code found -> so no tax calculated, so gross amount = net amount here

    Solution to cover both scenarios 1 and 2:

    Define your item prices without including the standard tax amount. Then put 'prices includes sales tax' to FALSE on the store and on all customers. If a customer is subjected to tax (scenario 1), it will be calculated on top of your tax exclusive prices, so that scenario is fine. If a customer is not subjected to tax (scenario 2), then gross amount = net amount which is also fine.

    Do you have any business requirements opposing working with tax exclusive prices on your trade agreements?

    If you want your EU customers to be subjected to tax in non-airport (non-duty-free) stores, then include the GST tax code in their tax group and allocate a sales tax override group (applied to transaction level to EXEMPT all the lines for the transaction) to your airport store to allow cashiers to apply EXEMPT TAX in the airport stores (after having the customer identified as EU based).

    I hope this helps.

    Patrick Mouwen

  • Community Member Profile Picture
    Community Member on at
    RE: Tax inclusive prices and Tax Exempt Customers using AX R2 POS

    Thanks for great explanation. We are experiencing the same problem. For several reasons, I think for our company it is not practical to operate retail price lists with ex vat prices.

    We have added the same exempt sales tax codes to both item sales tax groups and customer sales tax groups, so there IS an overlapping tax group with a percentage value (even if the EXEMPT is marked)

    Why is it not possible for AX to deduct the matching sales tax code percentage from the sales price (if "prices include sales tax" is selected)?

    Maybe I have misunderstood something....

    We could not get this working so the workaround we currently have is to manually give a discount on the POS of the standard tax percentage for tax exempt customers.

  • Community Member Profile Picture
    Community Member on at
    RE: Tax inclusive prices and Tax Exempt Customers using AX R2 POS

    Hi , we tried using discount while exempting tax for customers, but we have multiple customized discounts which are overlapping with discount given by exempting tax.

    Is there any way we can achieve this by standard product.We implemented it on AX 2012 R3 MPOS.

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