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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Settle and Post sales ...
Microsoft Dynamics AX (Archived)

Settle and Post sales tax function

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Posted on by Community Member

Dear all,

I faced with the issue below for D365, could someone help to explain? I also make the comparison between D365 and AX 2012: i setup the same for 2 environments

  • AX 2012

- Post VAT in:

Dr 1331: 150

Dr 1331: 200

- Post VAT out:

Cr 3331: 5000

- > Manual calculation: Sales tax need to be paid is 4650 (5000-200-150)

-> Run sales tax payments function: correct with expected

Dr 3331: 5000

Cr 1331: 350

Cr AP (Tax authority): 4650

  • D365:

- Post VAT in:

Dr 1331: 6000000

Dr 1331: 11500000

- Post VAT out:

Cr 3331: 22231250

- > Manual calculation: Sales tax need to be paid is 4731250 (22231250-6000000-11500000)

-> Run Settle and post sales tax

Cr 3331: 22231250

Cr 1331: 11500000

Cr 1331: 6000000

Dr AP (Tax authority): 39731250

-> Does anyone could help me explain? 

Thank in advance,

Best regards,

*This post is locked for comments

I have the same question (0)
  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi,

    Can you share details of the transactions that you recorded in D365?

    Is it possible that you have overlooked a transaction that is responsible for the difference between the settlement posting (39731250) and the amount you calculated (4731250)?

    Many thanks,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Dear Ludwig,

    For the details of transactions, i only recorded 3 entries: 2 for VAT in (10% and 5%), 1 for VAT out.

    When i checked the settlement posting, the entry is exact the one i posted on website (sorry i cannot upload the pic from our company PC), so i'm not sure where else to check. As my understanding from AX 2012, the transaction should be:

        Dr 3331: 22231250

            Cr 1331: 11500000

            Cr 1331: 6000000

            Cr AP (Tax authority): 4731250

    The strange thing is when i open the report "Report sales tax for settlement period" the result is:

        Sales tax receivable: 17,500,000.00

        Sales tax payable: -22,231,250.00

        Use tax: 0.00

        Total: -4,731,250.00

    So i'm confused, because the balance in transaction currency recorded for tax authority is positive amount (Dr 39731250)

    Best regards,

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Thu Ngo,

    I do not have an explanation for this strange outcome. If your report shows an amout of 4731250 then you should see this amount posted. Can this be caused by foreign currency transactions and currency conversion issues? If this is not the case, can you replicate this issue in a demo environment?

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    So the function "Settle and Post sales tax" in D365 should behave as "sales tax payments" in AX 2012? MS don't change the concept? I got confusing when the result is different with AX 2012.

    Actually we are using the demo environment for testing D365, so i'm not sure what is the possible issue. And the number for tax amount is already converted correctly into our accounting currency.

    Best regards,

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Thu Ngo,

    The difference between your amounts is exactly 35,000,000.00

    Can you identify this amount somewhere?

    Further above you mentioned that the sales tax for settlement period Report Shows an amount of 17,500,000.00 for the receivable, which is just half of that amount.

    Can this be caused by a duplicated transaction?

    Can you try replicating the issue in a new period and year that does not have any transactions posted?

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    Sorry for the late reply.

    I tried to test the whole tax-process again and look like the result still not correct:

    - Post VAT in:

    Dr 1331: 2,000,000.00

    - Post VAT out:

    Cr 3331: 10,000,000.00

    Cr 3331: 10,000,000.00

    - > Manual calculation: Sales tax need to be paid is 18,000,000.00

    (10,000,000.00+10,000,000.00-2,000,000.00)

    -> Run Settle and post sales tax

    Cr 3331: 10,000,000.00

    Cr 1331: 10,000,000.00

    Cr 1331: 2,000,000.00

    Dr AP (Tax authority): 22,000,000.00

    Sales tax receivable: 2,000,000.00

    Sales tax payable: -20,000,000.00

    Use tax: 0.00

    Total: -18,000,000.00

    Best regards,

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi,

    Can you take a look at the following hotfix description in LCS

    KB 4024895Posting of Salex tax (VAT) settlement is incorrect

    What you see might be related to a system bug.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Ludwig,

    Thank you so much, i will ask our TC to check this KB.

    Best regards,

    Thu Ngo

  • Community Member Profile Picture
    Community Member on at

    Hi Thu,

    Did you get the resolution.

    Best Regards,

    Karm

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Karm,

    If you have a similar issue, please create a new thread where you provide information about the system version that you operate and some details of your issue.

    This is an quite old thread and your machine might behave differently simply because you run anothe version.

    Many thanks,

    Ludwig

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