(IND) Post service tax in purchase transactions by using a Purchase journal

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

You can create a purchase order to record details about goods, and then calculate service tax for the purchase transaction in a purchase journal. When you post the service tax in a purchase journal, the service tax amount is posted to a ledger account. You can also specify the service codes and service categories for vendors and foreign vendors before you post the journal.

Use the Purchase order form to identify the ledger accounts that the service tax amounts are posted to.

  1. Click Procurement and sourcing > Common > Purchase orders > All purchase orders. On the Action Pane, on the Purchase order tab, in the New group, click Purchase order.

  2. In the Create purchase order form, enter the required information, and then click OK. For more information about this form, see Create a purchase order.

  3. In the Purchase order form, on the Line details FastTab, click the Tax information tab.

  4. In the STC number field, select the service tax code (STC) number of the legal entity. The ledger accounts for posting the service tax amounts are identified by the STC number.

  5. In the Service code field, select the service code for the transaction line.

  6. Depending on the version that you are using, do one of the following:

    • In AX 2012 R3 and cumulative update 6 or later for AX 2012 R2: In the Service category field, specify a service category. The following options are available:

      • Inward – Select this option when you purchase goods from a vendor.

      • Inter unit or input – Select this option either when you transfer goods between two units within your legal entity, or when you transfer goods from the legal entity to a subcontractor for additional processing. For example, you can select this option when the goods are manufactured in one unit and then transferred to the packing unit of your legal entity.

      • Others – Select this option for other service categories. The input tax amount for this category is posted to the expense account instead of the recoverable account or the interim recoverable account.

    • In Microsoft Dynamics AX 2012 R2: In the GTA service category field, select the Goods Transport Agency (GTA) service category for a GTA vendor.

See also

(IND) Calculate service tax for a purchase order

(IND) Purchase orders (modified form)