(IND) Define the formula to calculate sales tax
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
Note
This topic has not been fully updated for Microsoft Dynamics AX 2012 R2.
You must define the formula to calculate sales tax for the item sales tax group. The formula for the sales tax codes can be defined by using sales tax codes and miscellaneous charge codes. The sales tax codes that are attached to the item sales tax group are displayed on the Taxes tab on the Formula designer form. You can also view the miscellaneous charges on the Misc. charges tab on the Formula designer form.
Click General ledger > Setup > Sales tax > Item sales tax groups.
Select an item sales tax group.
Click the Formula designer button.
Press CTRL+N on the Calculation tab to define the calculation expression for a specific sales tax code. The automatically generated priority ID for sales tax calculation is displayed in the ID field.
Select the sales tax code to define the formula for in the Tax code field.
Select the basis to calculate sales tax.
Line amount – The sales tax is calculated on the transaction line amount by using the calculation expression that is defined for the sales tax code.
Excl. line amount – The sales tax is calculated by using the calculation expression that is defined for the sales tax code.
Max. retail price – The sales tax is calculated on the maximum retail price of the item line by using the calculation expression that is defined for the sales tax code.
Assessable value – The sales tax is calculated on the assessable value that is calculated for an item by using the calculation expression defined for the sales tax code.
Select the Price incl. tax check box if the taxable basis includes the sales tax amount.
Note
The Price incl. tax check box is selected automatically for sales tax codes with maximum retail price as the taxable basis, but you can clear the check box if it is required.
Click the + button, – button, * button, or / button to insert the calculation expression for the sales tax code in the Calculation expression field. You can define the calculation expression only by using the miscellaneous charge codes for the sales tax code with priority ID 1.
Note
The sales tax calculation is based on the formula that is defined in the Calculation expression field for the sales tax codes that are attached to the item sales tax group.
Use one of the following methods to add a sales tax code or a miscellaneous charge code to the Calculation expression field:
Click the Taxes tab > Misc. charges tab > Misc. charges code.
Double-click a code on the Taxes tab or the Misc. charges tab.
Drag and drop a code from the Taxes tab or Misc. charges tab.
Note
You must insert a calculation expression before each sales tax code in the Calculation expression field. For example, a formula must be entered in the syntax as + [LST – Freight + Fee].