Packing slip post for Intercompany direct delivery: Tax is regulated, sales orders cannot be rearranged

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Posted on by Michael Mao

Hello AX experts,

Browsing through previous posts, I know this error has come up numerous times but none seems to provide a way out for where I'm stuck ...

So I have set up a cross company direct delivery in AX 2012R2, that is:

Company A sells to Company B via Intercompany sales order (an equivalent Purchase order is created in Company B);

Then Company B sells to end customer via a normal sales order.

Order fulfillment occurs in Company A (Pick, Pack, Invoice). Since it's direct delivery, Pick/Pack/Invoice in Company B are automated.

The problem is, we always override sales tax in Company B's sales order using a 3rd party software. Now when I post packing slip for the intercompany sales order, I got this error:

"Sales orders cannot be rearranged when individual sales orders are tax regulated.
Remove the regulation on the orders, rearrange and regulate the tax on the summary order."

We don't want to summarize or group any postings. We want the chain of orders each has its own separate postings of packing slips and invoices. Summary Update parameters are set to None.

Please help point a direction. Many thanks ...

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Does your 3rd party tax software overwrite the calculated sales tax and enters a different tax amount in the SO for your external customer?

Didn't you say that invoicing happens through A?

Does the process work if there is no direct delivery?

Best regards

Ludwig

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Michael Mao 75 on at

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Hi Ludwig,

Thanks for your reply. To answer your question:

1. We overwrite sales tax on the end customer sales order, that is in Company B only. The intercompany sales or purchase, we are not overwriting any tax (actually we don't even charge tax on them)

2. Yes, invoicing happens from Company A, because it's a direct delivery.

3. I just tested the fulfillment without direct delivery, packing slip post was successful...

So what am I doing wrong in the direct delivery setup? Does AX consider direct delivery a 'grouping' or 'summation' of orders, hence not allowing individual order tax override?

Thank you

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ZvikaR 168 on at

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If the inter-company sales order/purchase order does not need to have any tax on them - did you try, instead of overriding the tax amount, to simply remove the sales tax group/item sales tax group from the line level? (on both sales order/purchase order)

when you do that, do you still get the error message?

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Michael Mao 75 on at

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Hi Zvika,

Thanks for your reply. I just tried and still the same error message. I think AX is just not happy about the individual order tax is overwritten, rather than the 2 intercompany orders having taxes or not...

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ZvikaR 168 on at

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do you get the error message for a simple sales order (not linked to the inter-company PO/SO) ? maybe your issue is not at all related to inter-company but something to do to your sales tax engine?

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Ludwig Reinhard Microsoft Employee on at

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Hello Michael,

It is good to know that things work as expected if you are not using direct deliveries.

Can you do another test and check whether the direct delivery process works if there is no tax at all, i.e. also no tax for the end customer?

If this is the case then the integration with the 3rd party tax software seems to be the issue. Maybe there is something incorrectly setup or a specific setup is missing for this integration?

Best regards,

Ludwig

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Michael Mao 75 on at

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Hi Zvika, I can override tax on simple sales order, no problem with that.

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Michael Mao 75 on at

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Hi Ludwig

Right now I have a tax override on my original sales order, and no tax at all on intercompany orders. See screenshot.

As soon as I remove the override by letting AX recalculate the tax, everything works.

The 3rd party software simply creates this tax override line on the original sales order, and does nothing else.

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Ludwig Reinhard Microsoft Employee on at

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Hi Michael J. Mao,

Seems that the intended integration of the 3rd party software does not work as required and that you have to do some code modifications.

Can you possibly talk to the 3rd party software provider and ask if they dealt with similar issues in the past?

Best regards,

Ludwig

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Michael Mao 75 on at

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Hi Ludwig,

Yes I will talk to the provider but I really don't think there is anything wrong with it...

For testing, I created a direct delivery sales order in 1 company only. Manually override the tax. When I process the purchase in the same company, product receipt failed due to the same error.

This has nothing to do with the 3rd party, I just think AX does not like individual order tax override when it's direct delivery?

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