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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Need Explanation of Sa...
Microsoft Dynamics AX (Archived)

Need Explanation of Sales Tax Settlement Date

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Posted on by Community Member

Hey all,  We are currently having an issue with Return not calculating the correct sales tax.  For example, in the state of NJ the sales tax changed from 6% to 7% on Jan 1st 2017.  When we try to create Return Invoices for item that were bought in 2016, the new invoice in calcualting tax based on the new tax rate instead of the old one.

I'm thinking that Sales Tax Settlement dates are not setup properly in our system, but I don't have a good understanding of how they work.  If someone could point me to an article or or tell if I"m on the right track, it would be greatly appreciated.

Thanks for your help everyone!

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  • Community Member Profile Picture
    Community Member on at

    BTW, I think I mean Sales Tax Settlement Periods.  Not to confuse anyone.

  • Community Member Profile Picture
    Community Member on at

    Bump

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

    Hello Pedro Coelho,

    The validity of sales tax codes is specified in the sales tax code form. In this form you can find a value button that allows you specifying from which date on a specific sales tax code is valid. In your case the tax rate changed as of a specific date. As a result, newly created sales orders/return orders will have the new rate applied.

    To apply the old rate you basically have two Options

    1) Manually overwrite the sales tax that AX calculates.

    This option has the disadvantage that the %-printed on the invoice document might be wrong or at least confusing. As an example, your customer might see that a 7% rate is printed on the invoice document while actually only a 6% tax amount is calculated.

    2) Setup a new tax code & item sales tax group for the new tax rate. In this case you can easily switch between the old and the new tax rate by selecting a different item sales tax code in the sales order/return order form.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Unfortunately, our volume is too large to do this manually.  My confusion is that there seems to be a glimpse of this functionality in the system, since the is a InventTransIdReturn field that gets populated in the SalesLine table when you the "Search Sales Order" button when creating a Return Order.  I was hoping to leverage this field.  

    However, the way AX calculated tax seems very complicated to me, with lots of table and temp tables being populated in the whole process.  I focuses my efforts in the \Classes\TaxSales\calc() method, but i can't get my code wto work properly.  Currently AX is complaining that:

    "The transactions on voucher CC-20042810 do not balance as per 2/27/2017. (accounting currency: -584.00 - reporting currency: -584.00)"

    I have no idea what this means.

    Thanks for your response Ludwig.

  • Community Member Profile Picture
    Community Member on at

    Bump

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

    Hi Pedro Coelho,

    You can find some information on the sales tax setup in the following blog post:

    vsdynamicsfinance.wordpress.com/.../sales-tax-setup

    If you have too many transaction to change you need indeed a developer for some help. Otherwise, it will take you ages to correct this manually.

    Regarding the last error message you received:

    There can be many reasons for that and similar issues have already been reported in this forum. One of the reasons might be that some account setup is missing. However, it can also be caused by a system bug and I would thus recommend that you check LCS for an available hotfix.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member on at

    Hi Dr. Reinhard,

    Do you know if these have been any plugin created to help with this issue?  We are still having the same issue after all this time.

    I found and article that seems to suggest that this feature is available in Dynamics GP. (blogs.msdn.microsoft.com/.../date-effective-tax-feature-for-microsoft-dynamics-gp-2010)

    I'm very surprised that Dynamics AX does not already know how to handle this.

  • Community Member Profile Picture
    Community Member on at

    Dr. Reinhard,

    Why would you need a developer? Wouldn't you just use the information at this link to set up this?

    technet.microsoft.com/.../aa556805.aspx

    Using Document date should resolve this issue since it'd pull the date the Sales Order was originally created.

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