Add sales tax to inventory item cost price

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Posted on by Ismail Mohamed

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Dear Experts,

When I receive goods I want to update Sales tax to my inventory item cost price not to tax receivable account .may I know any setup or configuration issue.

3581.tax.png

Thanks in advance

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ZvikaR 184 on at

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1. The key thing is that you set your sales tax code as "100% non-deductible" (on the "Values" form where you also set up the sales tax rate)

2. You create the Purchase order, and select the sales tax group / item sales tax group to result in the above sales tax code.

3. When you INVOICE the purchase order (I don't believe it happens during receipt, but you can double check), the tax amount will become part of the total amount posted into inventory value.

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ZvikaR 184 on at

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Ludwig Reinhard Microsoft Employee on at

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Hi Ismail,

for which country do you setup this sales tax? Isn't it allowed in your country to deduct that tax?

Best regards

Ludwig

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Ismail Mohamed 576 on at

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Egypt

In some products we bought some items with tax 14% and don't added this tax in sales , like some items of food , so we need to add the tax to item cost in inventory

Thanks

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ZvikaR 184 on at

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IF the tax is recorded (and paid to the vendor) as part of the purchase order - you can use "non-deductible" tax codes I described above.

If the tax is collected through a 3rd party, so is not part of the invoice to the vendor, you can use AP Charge Codes set to "debit" into the item.

If you already invoiced the purchase order there is a functionality allowing you to add charges after the fact. as described in the article below

technet.microsoft.com/.../aa551276.aspx

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Ludwig Reinhard Microsoft Employee on at

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Hi Ismail,

Can you please check if changing the sales tax code setup overcomes the issue.

In my example, I have a 7% tax and I specified that 100% of that tax is exempt.

Would be great if you could double check in a demo/test environment and let us know whether this change achieves what you want.

Best regards,

Ludwig

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Ismail Mohamed 576 on at

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thanks all experts ,

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AX2012 hassan 20 on at

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Dear Ismail,

can to help me how to solved this case please by detail setup

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