What are the differences between item sales tax group and sales tax group. Can someone please differentiate between these two groups. Waiting for your valuable answers.
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Hi,
They both define your sales tax. Sales Tax Group is typically linked to your customers and vendors. Item Sales Tax Group is linked to your items and the combination of both determines the sales tax code used for calculating the actual sales tax.
- item tax group is (by name it self 'item') for Item or Line level of SO or PO.
whenever tax transaction is posted , tax should be calculate or attached to Vendor or Customer and Inventory
- Sales tax groups are groups of sales tax codes that are attached to customers and vendors. They are also attached to ledger accounts for transactions that are not posted to a particular vendor or customer.
Yes that is basically right.
What drives sales tax in AX is the tax code. Sales tax groups and Item sales tax groups have tax codes associated, and the tax codes applied to a transaction are whichever tax codes are found in BOTH the Sales tax group and the Item sales tax group assigned to the order line or journal line. Often the Sales tax group inherits from the order header, which itself inherits from the customer, vendor, or customer address, vendor address, etc.
The basic principle at work is that a transaction is taxable if and only if both the business entity and line item both indicate it should be taxable. In other words, a business can be tax exempt (providing proof via a tax exempt certificate in the US for example), and an item can also be tax exempt (groceries again in the US for example). Sales tax groups often represent the taxation of a given area where the business is located, i.e. state, county, city, province, etc., and so in the US where the system is complex there are often many, many Sales tax groups. Item sales tax groups are often much simpler, usually just indicating whether an item is taxable or not, though one exception we recently dealt with was a surcharge tax on lumber sold to a specific state in the US.
Hope this helps.
Thank you very much for your reply. The one which is attached to item is an item sales tax group and the other to the business is sales tax group. Did I get right ?
Please find the link for same
technet.microsoft.com/.../gg231517.aspx
If you need any extra info please confirm.
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Andy Adamak
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