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Asset Leasing and Sales Tax

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Posted on by D365AndyHunter

In the new Asset leasing module i cannot see anywhere to setup sales tax options relating to the lease, typically when leasing assets in the UK VAT is applied to the rental values

The payment schedules used to create the transaction either to a ledger account or to a vendor account have no mention of sales tax

The journal created from the payment schedule may not be edited but is not populating the item sales tax group, the sales tax group being populated from the vendor

Is there anywhere to add the sales tax details relating to the lease

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IvyYY 173 on at

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RE: Asset Leasing and Sales Tax

From accounting perspective, you can use a balance sheet main account as the clearing account. In lease book, disable "Pay to vendor". Instead of crediting vendor, you can credit a clearing account. Then, when you receive the invoice for payment, enter the invoice to system as usually by selecting the right tax combination. In vendor invoice, do not debit any expense account, but debit the same clearing account. Then, tax will hit the correct ledger account, and you can pay invoice as usually with tax amount included. The clearing account will net to zero because the credit and debit entries will offset each other.
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Sten Baumgarten 10 on at

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RE: Asset Leasing and Sales Tax

Hi Andy

The asset leasing module cannot handle VAT/GST yet, but I understand that Microsoft is aware of that and will add the functionality. I have seen a work around used: www.youtube.com/watch

The Lease inventives field is used.

Regards

Sten
D365AndyHunter 19 on at

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RE: Asset Leasing and Sales Tax

Where can you add the item sales tax group, when the journal is created the fields are not editable. There does not appear to be anywhere in the book, payment lines or payment schedule to add this

If you use the ledger rather than the vendor as the offset, when posting the actual bank payment the sales tax can be added at that point
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M.Aamer on at

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RE: Asset Leasing and Sales Tax

Hello D365AndyHunter,

You can assign the "Sales tax group" on the vendor ID and "Item sales tax group" on the offset account in the lease payment, when you create the journal from asset leasing payment schedule, the system will default the sales tax group and item sales tax group then calculate the sales tax amount. Please examine this setup on your UAT test environment and validate the results.

Besides that, please check the following raised idea experience.dynamics.com/.../
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Junaid Idrees on at

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RE: Asset Leasing and Sales Tax

Hi D365AndyHunter,

Yes we cannot link Item sales tax group on Lease Asset and once vendor invoice journal is created it is basically locked by system to prevent any values.

If it is a critical showstopper for business then I suggest you to ask your developer to check the possibility of edit the journal so that you can select item sales tax group manually. Please make sure this modification should'nt affect other OOB functionality of leasing module.

You can also post your feedback on Idea's portal:

experience.dynamics.com/.../
Tim 100 on at

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RE: Asset Leasing and Sales Tax

I have the same issue and cannot find any information on this, the only option I see is journal setup having tax included, but I think that will cause other issues.