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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Sales Tax Non-Recovera...
Microsoft Dynamics AX (Archived)

Sales Tax Non-Recoverable in Vendor Invoice Journal

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Posted on by Community Member

Dear all,

I have a case to calculate & post the sales tax to related expense account in the vendor invoice journal.

Previously I have already succeeded in posting the sales tax to add the expense of the invoice for Vendor Invoice come from PO. In this case I use the exempt value in the tax code.

However when I use the same tax code in vendor invoice journal, the sales tax amount become zero and no additional expenses is posted.

Is there anyone know how to solve this case?

Thanks,

M.H.

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  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi M.H.

    Have you compared the sales tax - item sales tax group combination that was used for posting the PO invoice?

    If it worked for the PO invoice, it should also work for the invoice that is recorded through an invoice journal.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    Basically I use only 1 tax code for each tax group (item sales tax group and sales tax group). So my set up is the tax code is let say V2. Which have value 10% and pct. exempt from sales tax 100%.

    The V2 is assigned to sales tax group V2 & item sales tax group V2.

    Is there any missing configuration in my setup?

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi M. Hasan,

    Further above you mentioned something about an exempt value that you used. Can this be related to your issue that some parameter settings have been modified and not reset?

    Can you also please check that a sales tax %-value is set up - even if it is Zero - and that the form where you Setup the sales tax %-value includes a data value.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    I do not modified the tax related transaction.

    I use the exempt value to record the total tax in debit (use tax) as expense.

    Thus the posting account in sales tax will follow the expense account instead of sales tax account in the ledger posting set up.

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    I just found out that actually my method is incorrect.

    Because in the invoice from PO although the journal is posted to vendor account, it doesn't posted as vendor transaction.

    Thus, my questions is how do I set the posting journal to be posted as expenses (following the account in the purchase cost), instead as sales tax account.

    Thanks in advance,

    M.H.

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi M.H.,

    If you manually enter $0 in the actual sales tax amount field and post the transaction, the complete amount will be posted as an expense. Doing that requires that you enter the gross amount in your journal line.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Andre,

    Actually I am still looking for the correct way to do this.

    Because though it might post to ledger account as expected.,

    There will be different between calculated and actual sales tax amount.

    However, I have try this method. But I got stuck when trying to post the journal using gross amount. I have tick the journal "Amount include sales tax". But the journal still calculate based on net value.

    Is there any configuration that I have to change?

    Thanks,

    M.H.

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwid,

    I am sorry that I mistaken your name.

    My case above is ok for invoice journal.

    But I try with the Invoice from PO, I couldn't change the tick mark to include sales tax.

    The tick mark is grey out.

    And when I try to add new line, the Invoice is error because the 3 way matching validation.

    Do you have any other suggestion?

    Because in my case there are two types of tax.

    In which the one which is recoverable that will be net with the VAT-Out (payable).

    And the other one which is non-recoverable which will become expense.

    Regards,

    M.H.

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi M.H.

    Can you possibly provide me the ledger postings (DR, CR and tax information) you expect for example in Excel?

    I will then try in my demo machine how your scenario can be incorporated in the standard application.

    Many thanks and best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    Below is my expected journal:

    Account Db/Cr Amount Remarks
    Expense Account Db 10,000 Net Value Expense
    Expense Account Db 1,000 Non-Recoverable Tax 10%
    Account Payable Cr 11,000 Vendor transaction (Net Value + Tax)

    Regards,

    M.H

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