sales tax on return order line larger than sales tax on original order line

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Posted on by Cos

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Some of the sales tax rates have increased on Jan 1st and when customer returns are created against last year's orders we noticed the system calculates the sales tax on the return at the current increased rate instead of the rate on the original order. As a result, the credit total amount is larger than the original invoiced amount.

Is there a way in AX 2009 to ensure the sales tax on the returned line equals the one collected in the original order line?

Anyone else encountered this and how did you resolve

AX2009, system set to apply sales tax based on invoice date

Thanks,

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Brandon Ahmad 2,465 User Group Leader on at

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Re: sales tax on return order line larger than sales tax on original order line

2012 offered a lot of improvements on this but this was handled in 2009 also. This is all dependent on how you setup your Sales Tax Code. For information on this, see this guide:

I'd personally read the entire thing. Don't know how this got out for free since Microsoft charges thousands of dollars for me to teach it in the classroom. But it's really nice --> You are looking for the section starting after 6-23.

download.microsoft.com/.../MicrosoftDynamicsAX09UserGuide.pdf

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Cos 140 on at

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Re: sales tax on return order line larger than sales tax on original order line

Thanks for the reply. No mention of the returns issue I am asking about in MS training manual as well as in other documentation I looked at. Anyone else, ideas?

Thanks.

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Brandon Ahmad 2,465 User Group Leader on at

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Re: sales tax on return order line larger than sales tax on original order line

****sigh**** This is why I have to remind myself to not post while I'm cramming and taking certification exams. My brain was fried and I apologize about that. I should have included more information. I promise that I'm usually more detailed than this. One more certicification to go and I'll be good for the year. Till then..

So, hopefully, I come off as clear. If not, I'll get some sleep and come post back on this. The sales tax discrepancy is well-known. What you have to do is setup sales tax codes and configure those so as prevent tax discrepancies. Here is Microsoft alluding to your exact issue(see the quotation).

http://technet.microsoft.com/en-us/library/hh597220.aspx

"Retail calculates taxes for return transactions by using the schedules for sales tax rates that are assigned to each sales tax code. Set up these schedules to guarantee that you do not refund more tax than you collected."

Unfortunately, every industry has a slightly different way of implementing this behavior(and I don't know yours), but it all comes down to the same strategy -- configure sales tax codes and allow your sales orders, return orders, or purchase orders to use those. Forgive my earlier response, I really was sleepy. My little brain has way too much microsoft info floating around in it at the moment.

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