About the Marginal base field
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
On the Calculation FastTab of the Sales tax codes form, you define how the sales tax calculation of the selected sales tax code is applied to the tax base amounts on the invoice. You do this by selecting an amount category in the Marginal base field and an appropriate value in the Calculation method field.
Various combinations of values in these fields produce very different sales tax calculations, as shown by the following examples. The examples use the same tax interval values, which are set up for each tax code in the Values form. To open this form, click Values in the Sales tax codes form.
Important
If the marginal base on one or more of your sales tax codes is based on line or unit, the value of the Calculation method field in the General ledger parameters form must be set to Line.
In the United States, sales tax is usually calculated for each invoice line, and the total sales tax on the invoice is the sum of sales taxes on each line. In Europe, it is common to total the base amount for all invoice lines. The calculated base is then used to calculate taxes.
Net amount per line
Select this option to calculate sales tax based on the net amount for the invoice lines, excluding any other taxes.
Example
The sales tax rates are set up in the following intervals.
Amount interval |
Tax rate |
|---|---|
0 - 50 |
30% |
50 - 100 |
20% |
100 - 0 (> 100) |
10% |
Note
The upper limit of zero (0) in the last interval means that all amounts that exceed 100 are included in the interval.
Marginal base: Net amount per line
Calculation method: Interval
You buy eight lamps that cost 25.00 each. The net amount for the invoice line is 200.00.
The tax is calculated as follows:
Total sales tax = 50 x 30% + 50 x 20% + 100 x 10% = 15 + 10 + 10 = 35.00
Total invoice amount = 200.00 + 35.00 = 235.00
Variation
If the invoice is created by using two lines with four items on each line, the net amount per line is 100.00 and the sales tax is calculated as follows:
Sales tax line 1 = 50 x 30% + 50 x 20% = 15 + 10 = 25.00
Sales tax line 2 = 50 x 30% + 50 x 20% = 15 + 10 = 25.00
Total sales tax = 25.00 + 25.00 = 50.00
Total invoice amount = 200.00 + 50.00 = 250.00
Net amount per unit
Select this option to calculate sales tax based on the value of each unit, excluding any other taxes. This can also involve the price of the unit that is specified in the Unit field, if the sales tax code uses this field.
Example
The sales tax rates are set up in the following intervals.
Amount |
Tax rate |
|---|---|
0 - 50 |
30% |
50 - 100 |
20% |
100 - 0 (> 100) |
10% |
Marginal base: Net amount per unit
Calculation method: Whole amount
You buy eight lamps that cost 25.00 each. The net amount for the invoice line is 200.00.
The tax is calculated as follows:
Sales tax per unit = 25.00 x 30% = 7.50
Total sales tax = 7.50 x 8 units = 60.00
Total invoice amount = 200.00 + 60.00 = 260.00
Net amount of invoice balance
Select this option to calculate sales tax based on the total value for the invoice, excluding any other taxes.
Example
The sales tax rates are set up in the following intervals.
Amount |
Tax rate |
|---|---|
0 - 50 |
30% |
50 - 100 |
20% |
100 -0 (> 100) |
10% |
Marginal base: Net amount of invoice balance
Calculation method: Interval
You buy eight lamps that cost 25.00 each. The net amount for the invoice line is 200.00.
The tax is calculated as follows:
Total sales tax = 50 x 0.30 + 50 x 0.20 + 100 x 0.10 = 15 + 10 + 10 = 35.00
Total invoice amount = 200.00 + 35.00 = 235.00
Warning
It makes no difference how many lines the invoice has, because the value of the Marginal base field is Net amount of invoice balance.
Gross amount per line
Select this option to calculate sales tax based on the value of the line. This includes any other taxes.
Note
In a sales tax group, you can only have one sales tax code with this selection in the Marginal base field.
Example
The sales tax rates are set up in the following intervals.
Amount |
Tax rate |
|---|---|
0 - 50 |
30% |
50 - 100 |
20% |
100 - 0 (> 100) |
10% |
There is a special duty of 5.00 on each lamp. The duty is added to the net amount before the sales tax calculation.
You buy eight lamps that cost 25.00 each. The net amount for the invoice line is 200.00.
The gross amount for the invoice line is 200.00 + (8 x 5.00) = 240.00.
The tax is calculated as follows:
Total sales tax = 50 x 0.30 + 50 x 0.20 + 140 x 0.10 = 15 + 20 + 14 = 39.00
Total duty = 5.00 x 8 = 40.00
Total invoice amount = 200.00 + 39.00 + 40.00 = 279.00
Variation
If the invoice is created by using two invoice lines with four items on each line, the net amount per invoice line is 100.00.
The gross amount per invoice line would be 120.00, and the sales tax is created as follows:
Sales tax invoice line 1 = 50 x 0.30 + 50 x 0.20 + 20 x 0.10 = 15 + 10 + 2 = 27.00
Sales tax invoice line 2 = 50 x 0.30 + 50 x 0.20 + 20 x 0.10 = 15 + 10 + 2 = 27.00
Total sales tax = 27.00 + 27.00 = 54.00
Total duty = 5.00 x 8 = 40.00
Total invoice amount = 200.00 + 54.00 + 40.00 = 294.00
Gross amount per unit
Select this option to calculate sales tax based on the value of the unit. This includes any other taxes.
Note
In a sales tax group, you can only have one sales tax code with this selection in the Marginal base field.
Example
The sales tax rates are set up in the following intervals.
Amount |
Tax rate |
|---|---|
0 - 50 |
30% |
50 - 100 |
20% |
100 - 0 (> 100) |
10% |
Marginal base: Gross amount per unit
There is a special duty of 5.00 on each lamp. The duty is added to the net amount before the sales tax calculation.
You buy eight lamps that cost 25.00 each. The gross amount per unit is 30.00.
The tax is calculated as follows:
Sales tax per unit = 30 x 30% = 9.00
Total sales tax = 9.00 x 8 = 72.00
Total duty = 5.00 x 8 = 40.00
Total invoice amount = 200.00 + 72.00 + 40.00 = 312.00
Invoice total including other sales tax amounts
Select this option to calculate sales tax based on the total value for the invoice. This includes any other taxes.
Note
In a sales tax group, you can only have one sales tax code with this selection in the Marginal base field.
Example
The sales tax rates are set up in the following intervals.
Amount |
Tax rate |
|---|---|
0 - 50 |
30% |
50 - 100 |
20% |
100 - 0 (> 100) |
10% |
There is a special duty of 5.00 on each lamp. The duty is added to the net amount before the sales tax calculation.
You buy eight lamps that cost 25.00 each. The net amount for the invoice is 200.00.
The gross amount for the invoice is 200.00 + (8 x 5.00) = 240.00.
The tax is calculated as follows:
Total sales tax = 50 x 0.30 + 50 x 0.20 + 140 x 0.10 = 15 + 10 + 14 = 39.00
Total duty = 5.00 x 8 = 40.00
Total invoice amount = 200.00 + 39.00 + 40.00 = 279.00
Warning
It makes no difference how many lines the invoice has, because the value in the Marginal base field is Invoice total incl. other sales tax amounts.
See also
About the Whole amount and Interval options for sales tax codes