Price Incl. of VAT - Total Amount

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Posted on by Dinesh HC

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Hello All,

I am facing a issue in VAT calculation in AX 2012 R3 India version, where the Items are sold on MRP.

The Scenario is that Item are sold on MRP, say Rs100, which includes Tax (10%). If I use the Item Tax group code which has Tax basis = Max. Retail Price and Price incl. Tax = Yes, the system calculates the Tax Amount correctly, but it adds to the line amount and gives the total value as 109.09 (Line Amount + VAT), where as it should have been 100 only item sold has MRP printed on them. On the alternative if I choose to use Item tax group that has Tax Basis as Line Amount, both VAT and Total amount are correct. But I cannot use this because, if there are any discounts, it is also factored for tax calculations. which is incorrect.

Kindly let me know if I missing any setup / configuration.

Thanks in advance..

Regards, Dinesh HC

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Guy Terry 28,924 Moderator on at

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Hi Dinesh,

I don't know India tax functionality, but I see you haven't mentioned the 'Prices include tax' tick box on the Customer ('Invoice and delivery' fast tab -> 'Tax' area).

I wonder if this is ticked whether AX will calculate tax as you expect when Tax basis = MRP.

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Dinesh HC 370 on at

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Hi Terry,

Thanks for taking some time out for this.

I checked the setups you suggested. There is no change in the effect of it.

Thanks

Dinesh HC

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