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Hi,
Currently I am involve in a AX 20012 R3 implementation for one of my customers who establish a new branch in Germany (Food Trading Company). during the analysis discussions, the accountant mention that we are going to use the "Standard Chart of Accounts SKR 04" for bookkeeping.
When we reached the goods purchasing cycle and discuss the vendor Invoice entries voucher he requested that, if :
1. The vendor is member of the European Union (EU) and
2. Purchased goods is "Food"
AX Vendor invoice should generate the following voucher:
| Debit / Credit | SKR 04 Account Number | SKR 04 Account Description | Amount | AX Posting Type |
| Debit | 5420 |
Intra-European Union acquisitions, 7% input tax and 7% VAT |
1,000 |
Purchase expenditure for product |
| Credit | 3301 | Trade Payables | 1,000 | Vendor Balance |
| Debit | 1140 | Merchandise Inventories | 1,000 | Purchase, Inventory Receipt |
| Credit | 5880 | Changes in inventories of raw materials, consumables and supplies, and of purchased merchandise | 1,000 |
Purchase expenditure for product |
| Debit | 1412 | Allocation account for input tax on intra-European Union acquisitions | 70 | Use Tax Expense |
| Credit | 3807 | VAT on intra-European Union supplies of goods and services subject to domestic taxation | 70 | Use Tax Payable |
As you can see I tried to map the requested accounts to corresponding AX posting Type in the "Item Posting / Purchase TAB". the issue is AX is using the same account number when debit or credit the "Purchase expenditure for product" account . In my case the customer requested to set up a different account number when Credit the "Purchase expenditure for product" Account . is that possible ?
As far as I know this is not allowed in AX. in fact I am wondering how the AX Customers in Germany set up AX if this is mandatory.
Thanx in advance
Trade payables
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Hy Hysam,
here some comments:
At the end of the fiscal year, in What COA format do you submit your financials to the government, SKR04 or ours?
Comment: Most companies have their own COA and use them for tax reporting purposes. An important question in this context is whether you are incorporating business accounting and/or tax accounting in AX. Some companies do both, others leave the tax Accounting part to their tax advisors.
Are employees in Germany able to work with a standard chart of accounts other than SKR?
Comment: I would assume that German accountants are not smarter or more stupid than accountants anywhere else and they can certainly work with a COA other than SKR :-)
Best regards,
Ludwig
At the end of the fiscal year, in What COA format do you submit your financials to the government, SKR04 or ours?
Are employees in Germany able to work with a standard chart of accounts other than SKR?
Thanks,
Hysam
Hi,
You can use any chart of accounts
There is no requirement using a SKR04 COA.
You can go ahead using your numbers as long as this is ok for your customer.
About the accounting method:
What you show above is the cost of sales method, which is one method allowed to German GAAP. Just clarify this with your customer. Should be ok in my opinion.
Best regards,
Ludwig
Hi Dr. Ludwing,
Just to clarify. you mean that Germany regulations is not enforcing the companies to use the "Standard Chart of Accounts SKR". and I can use any chart of account I want ( different accounts numbers, and names ) ?
if yes. Is that mean that I can use accounts starting by "1" to represent the "Capital Assets" rather than using accounts starting by "0" as mentioned in the "Standard Chart of Accounts SKR".
Coming to your question our company following the cost of sales accounting method (COGS) (Perpetual Inventory Method) not the (Periodic Inventory Method )
Example: our sales invoice voucher will be as following:
Debit. AR Account
Credit. Revenue Account
Debit. Cost of Goods Sold Account
Credit. Inventory Account
According to that is it allowed (In Germany) to use the normal AX entries when posting vendor Invoices as follow:
Debit. Purchase expenditure for product
Credit. Vendor balance (Accounts payable)
Debit. Purchase, inventory receipt (Inventory)
Credit. Purchase expenditure for product
Hi Shafeaa' Labadi,
The S in SKR stands for 'standard', that is a recommendation from an organization.
There is absolutely no requirement to follow this recommendation and we usually take the SKR chart of accounts only as a starting point.
I would recommend that you add two additional digits to the account number because a 4-digit account number is not sufficient in my opinion.
About your purchase expenditure accounts... there is no standard account available in the SKR04 chart of accoutns that really matches the transaction types that AX uses. So, better setup some new accounts rather than trying to use the 'standard' ones.
A final note:
Please clarify whether the company follows the cost of sales accounting method or the nature of expense accounting method.
There is often some confusion about it especially when it comes to the 'changes in inventory' accounts you highlighted above.
Best regards,
Ludwig
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