Example: Rounding payments made to sales tax authorities [AX 2012]

Updated: November 8, 2011

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

The sales tax ledger account for a legal entity shows a credit balance of -98,765.43. The legal entity collected more sales taxes than it paid. Therefore, the legal entity owes money to the tax authority.

The legal entity wants to use a rounding method that rounds the balance to the nearest 1.00. The user who is responsible for sales tax accounting performs the following steps.

  1. Click General ledger > Setup > Sales tax > Sales tax authorities.

  2. On the General FastTab, select Normal in the Rounding form field.

  3. In the Round-off field, enter 1.00.

  4. When it is time to pay the sales taxes to the tax authority, open the Sales tax payment form. (Click General ledger > Periodic > Sales tax payments > Sales tax payments.) Run the periodic job. For more information, see Sales tax payments (form).

  5. On the sales tax payments report, the tax amount of 98,765.43 is rounded to 98,765.

The following table shows how an amount of 98,765.43 is rounded by using each rounding method that is available in the Rounding form field in the Sales tax authorities form. For more information, see Sales tax authorities (form).

Rounding form option

Round-off value = 0.01

Round-off value = 0.10

Round-off value = 1.00

Round-off value = 100.00

Normal

98,765.43

98,765.40

98,765.00

98,800.00

Downward

98,765.43

98,765.40

98,765.00

98,700.00

Rounding-up

98,765.43

98,765.50

98,766.00

98,800.00

Own advantage, for a credit balance

98,765.43

98,765.40

98,765.00

98,700.00

Own advantage, for a debit balance

98,765.43

98,765.50

98,766.00

98,800.00

NoteNote

If you select Own advantage, the rounding is always to the advantage of the legal entity.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).

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