TAX on retained amount.. project invoicing

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Posted on by ashafie

Dears,

in project invoices which include retention amount, AX calculates the TAX on the net amount after deducting the retention . i.e, invoice amount 10,000 , retention amount 1,000, the system consider 9000 for TAX calculation while it should calculate the TAX on 10,000. (My company localization is SAU-Saudi Arabia)

Invoice amount 10,000

Retention 1,000

TAX 9,000* 0.05 = 450

Invoice total : 10,000-1,000 + 450 instead of (10,000 - 1,000 + 500)

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Ludwig Reinhard Microsoft Employee on at

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Hi ashafie,

That is right. You can, however, overwrite the tax base amount and the tax amount posted in the sales tax form that is available on the Project invoice proposal form.

Have you tried doing that?

Best regards,

Ludwig

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ashafie 15 on at

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Thanks for your reply,

yes, i can override sales tax amount calculated in the invoice proposal form, this will give correct results, however, doing this will need extra manual update on the sales tax amount when we claim the retention amount from the customer - as in this case- the system will put tax on the claimed retained amount and we have to update to zero.

is there any way to setup the system to consider invoice amount (10,000) instead of net amount (9,000) for tax calculation?

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Ludwig Reinhard Microsoft Employee on at

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Hi ashafie,

To my knowledge this would require a system modification.

Probably discuss this in more detail with one of your developers to see how this process can be made more user friendly with less manual interactions.

Best regards,

Ludwig

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Shaban Ibrahim 25 on at

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I have problem in sales tax calculation

I have invoice 1000 SAR
TAX 5% 50 SAR
Retention 95 SAR
How to make tax calculation setup, I need retention after deduct TAX
here is my tax code setup

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ZvikaR 190 on at

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yes, we experienced this fault also for Canadian retention treatment.

I tend to remember there was a hotfix to correct this behaviour.

what version of 2012 you're on?

If you can't find it I advise you raise it with Microsoft as a bug. This is clearly a fault, as it does not behave as the proper accounting recording should be.

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ZvikaR 190 on at

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Shabhan, you'd better create this question as a separate thread, that way more people can see it.

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Shaban Ibrahim 25 on at

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dear zvika,

could you let us know the hotfix number

we also face the same issue

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