Ledger posting groups (form)

  • Article

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Click General ledger > Setup > Sales tax > Ledger posting groups.

Use this form to set up the ledger posting groups for sales taxes.

The ledger posting groups are attached to individual sales tax codes, and the ledger posting groups determine the ledger accounts that the calculated sales taxes are posted to.

Note

If you change a ledger account for a ledger posting group, the sales tax transactions that have already been posted are not affected.

Task that uses this form

Set up ledger posting groups for sales tax

The following tables provide descriptions for the controls in this form.

Tab

Tab

Description

General

Enter or view information about the selected ledger posting group. You can enter accounts for vendor and customer cash discounts, if appropriate.

Fields

Field

Description

Ledger posting group

Enter a unique code for the ledger posting group.

You must select a ledger posting group for each sales tax code in the Sales tax codes form to define how the sales taxes for the sales tax code are posted in the general ledger.

Description

Enter a name for the ledger posting group. This name appears on reports and in forms together with the code in the Ledger posting group field.

Sales tax payable

Select the ledger account for outgoing sales taxes, which are payable to the tax authority. You collect these sales taxes on behalf of the tax authority when you sell taxable goods and services, and the amount that you receive includes the sales tax.

For example, if a customer makes a purchase of 95.00 and the tax amount is 5.00, the ledger transactions might be as follows:

Ledger account

Debit

Credit

Customer account (accounts receivable)

100

–

Sales tax payable*

–

5

Sales account (domestic)

–

95

*This account represents the ledger account that is specified in this field. Sales tax amounts that you receive from customers are credited to this account and debited to the appropriate customer accounts.

Sales tax receivable

Select the ledger account for incoming taxes, which are receivable from the tax authority. Vendors collect these taxes on behalf of the tax authority when you buy taxable goods and services, and the amount that is paid to the vendor includes taxes.

For example, if a vendor sends an invoice of 100.00, of which 5.00 is value added tax (VAT), the ledger transactions might be as follows:

Ledger account

Debit

Credit

Vendor account (accounts payable)

–

100

VAT paid (sales tax receivable)*

5

–

Inventory account (expense account)

95

–

*This account represents the ledger account that is specified in this field. Sales tax amounts that you pay to vendors are debited to this account and credited to the appropriate vendor accounts.

Note

If you selected the Apply U.S. taxation rules check box in the General ledger parameters form, this field is not available. Instead, sales taxes that are paid to vendors are debited as expenditures (costs) to the same accounts as the purchases. For more information, see (USA) Applying U.S. sales tax and use tax rules.

Use tax expense

Select the ledger account for posting deductible incoming taxes that are not claimed or reported to the tax authority by vendors.

Note

If the Apply U.S. taxation rules check box is selected in the General ledger parameters form, this field is not available.

For more information, see Record sales tax that is not claimed by EU vendors.

Use tax payable

Select the ledger account that offsets the use tax expense for taxes that are not claimed by vendors.

The use of this account depends on the kind of tax system that your legal entity has chosen:

  • Non-U.S. taxes – You must indicate a use tax expense account. For the sales tax groups that contribute amounts to this ledger account, you must select the Use tax check box in the Sales tax groups form.

  • U.S. taxes – The amount in this account offsets the taxes that have been posted as expenses if you selected the Apply U.S. taxation rules check box in the General ledger parameters form. The vendor is not required to collect the tax, but your legal entity might still owe taxes to a sales tax authority, and must track such taxes.

Example

Your legal entity buys office supplies online from an out-of-state vendor. The vendor charges 100.00 for the supplies and no tax. Your legal entity might still owe use taxes to the sales tax authority in your own state. The ledger transactions might be as follows:

Ledger account

Debit

Credit

Vendor account (accounts payable)

–

100

Use tax payable*

–

5

Office supplies (expense account)

105

–

*This account represents the ledger account that is specified in this field.

Settlement account

Select the ledger account that contains the net balance of the ledger accounts that are specified in the Use tax payable and Sales tax receivable fields. The balance is created when you run the Sales tax payment periodic job.

If the Apply U.S. taxation rules check box is selected in the General ledger parameters form, the account contains the net balance of the ledger account that is specified in the Use tax payable field.

At the end of the sales tax settlement period for the sales tax authority, you can run the Sales tax payment periodic job. During this job, the amount that your legal entity owes the sales tax authority for the period is transferred from this account to the sales tax authority's vendor account. When a user performs the legal entity’s usual payment routine, the payment to the sales tax authority is created together with payments to other vendors.

If you have not set up vendors for the sales tax authorities, this ledger account is debited directly when you pay the sales taxes that have been collected for sales tax codes that use this ledger posting group.

Unrealized tax payable

Select the account that unrealized sales tax for accounts payable should be posted to.

Note

(THA) This control is available only to legal entities whose primary address is in Thailand.

Unrealized tax receivable

Select the account that unrealized sales tax for accounts receivable should be posted to.

Note

(THA) This control is available only to legal entities whose primary address is in Thailand.

Vendor cash discount

Select the ledger account for the posting of vendor cash discounts that include a sales tax amount. If you use this field, you must also select the Reverse sales tax on cash discount and Cash discount is calculated on amount including sales tax check boxes in the General ledger parameters form.

For more information, see Vendor cash discount.

Customer cash discount

Select the ledger account for the posting of customer cash discounts that include a sales tax amount. If you use this field, you must also select the Reverse sales tax on cash discount and Cash discount is calculated on amount including sales tax check boxes in the General ledger parameters form.

For more information, see Customer cash discount.

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