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Hi All,
Any body please provide information on taxDirection in ax2012 r3.
Regards,
Srinivas
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You will find a good explanation here:
https://partnersupport.microsoft.com/en-us/par_msdyn/forum/par_dynax/sales-tax-direction/cb365847-254e-4d88-8cdd-84449350c0a5?auth=1
Hi Srinivas,
Please go through the link that magic1949 provided. I assume that this answers your question.
Would be great if you could mark the answer from Magic1949 as verified.
Many thanks and best regards,
Ludwig
Actually the link, while quite helpful in some ways is not completely accurate.
1. "Tax Direction" is important when dealing with VAT (in some countries termed "GST"), so talking about it in the context of "sales tax" is a bit confusing.
2. When reporting your VAT taxes, in many countries you are required to report separately:
a. All taxes you collected through sales (and also report on related sales amount): "Tax Payable"
b. All taxes you paid through purchases (and also report on related purchase amounts): "Tax Receivable":
AX makes its best "guess" as to whether a particular transaction is sales related or purchase related based on where the transaction was created, and other setup.
"Use Tax" related to a scenario where on a purchase the vendor did not charge you for tax, but you still owe it to the tax authority, so typically this amount will be added to your tax payable.
You probably also need to differentiate expense purchases.
Though the tax direction field is described for sales tax it also works for VAT.
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