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Project management & accounting - Transferring project cost to fixed asset, vendor tax showing as non capitalized sales tax

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Posted on by Alison Creech 25

After our AX 2012 FP3, R3 Upgrade in March of 2019 we discovered AP invoices on a project that posted before 3/18/2019 (our go live date) where correctly posting to the Fixed Asset. The AP invoices posted after 3/18/2019 were not posting the sales tax from the AP invoices as part of the total cost of the project moving onto the fixed asset.

In Project management and accounting, when the Estimate is calculated the AP taxes a showing in the totals as Not capitalized.  When the project is eliminated the fixed asset book value is transfer over with out the tax.  Is there a fix for this issue?

 

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Project management & accounting - Transferring project cost to fixed asset, vendor tax showing as non capitalized sales tax

    Hello Alison,

    Can you post some illustrative screenprints that show your voucher and the way how sales tax is setup?

    This would help a lot.

    Many thanks,

    Ludwig

  • Alison Creech Profile Picture
    Alison Creech 25 on at
    RE: Project management & accounting - Transferring project cost to fixed asset, vendor tax showing as non capitalized sales tax

    Microsoft-screen-shots.docx

    Ludwig,

    Sorry for the delay getting back to you, Holiday for us in the US. 

    Prior to installing the FP3 R3 upgrade, our vendor invoices taxes were included in the Project cost that moved over to the Fixed Asset.  Now it does not.  I have included the before and after screen shots of the issue.

    Thank you for your time,

    Alison

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Project management & accounting - Transferring project cost to fixed asset, vendor tax showing as non capitalized sales tax

    Good Morning Alison,

    I have not found a hint on LCS that this behavior would be related to a bug.

    Can you share an example (screenprints) of such a vendor invoice and how the sales tax is posted?

    If you want to have the sales tax included in the project estimate and the transfer to the fixed asset, do you actually need to have a separate sales tax posting?

    Isn't this simply recorded as expense?

    Best regards,

    Ludwig

  • Alison Creech Profile Picture
    Alison Creech 25 on at
    RE: Project management & accounting - Transferring project cost to fixed asset, vendor tax showing as non capitalized sales tax

    Hello Ludwig,

    This is the US style.  We report sales tax on vendor invoices as part of the value for the fixed asset.

    There were no tax changes made by us to our tax configuration during the upgrade and we do not use a 3rd party product for taxes.

    Do you have any configuration setting you recommend I check for this type of change?  

    Thank you for your time.

    Alison

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Project management & accounting - Transferring project cost to fixed asset, vendor tax showing as non capitalized sales tax

    Hello Alison Creech,

    The tax that you mentioned is that a 'European style' value added tax or a 'US style' sales tax? In the first case, I would expect that taxes are not included in the capitalized fixed asset value.  Can you provide more details about your tax regime and rules?

    Another thing that would be interesting to know is whether some changes have been made to the tax configuration while upgrading to R3. If things worked fine before, they should work fine after the upgrade. Do you know if changes have been made to the tax configuration?

    Can you also let us know if you use a 3rd party product for taxes or is this configured all in the standard application?

    Best regards,

    Ludwig

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