(IND) Calculate service tax for a foreign vendor [AX 2012]

Updated: November 27, 2013

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

Use the Purchase order form to create and post an import purchase order. You can calculate the service tax on goods of type Service that you import from a foreign vendor.

The service tax fields are available only if you do the following:

  • Select the Service tax check box on the Sales tax tab in the General ledger parameters form.

  • Set up the vendor as a foreign vendor in the Vendors form. Click Accounts payable > Common > Vendors > All vendors. Double-click a vendor account. In the Vendors form, on the Tax information FastTab, select the Foreign vendor check box.

  1. Click Accounts payable > Common > Purchase orders > All purchase orders.

  2. Select or create a purchase order for a foreign vendor. For more information, see (IND) Create import purchase orders.

  3. In the Purchase order form, on the Action Pane, in the Maintain group, click Edit.

  4. In the Purchase order lines area, select an item of type Service.

  5. On the Line details FastTab, on the Tax information tab, in the Service field group, the Recoverable/Expense on tax settlement check box is selected by default. A selected check box indicates that the service tax is posted to the recoverable account or expense account only when the tax is settled. You can clear the check box if a service tax is not applicable for the selected item.

  6. In the Service code field, select the service code that is attached to the item of type Service.

    NoteNote

    In AX 2012 R3 and cumulative update 6 or later for AX 2012 R2: The accounting code for the service is updated in the Accounting code field based on the service code that you select. For more information, see (IND) Set up service codes for service goods.

  7. 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, select one of the following options to indicate the service category for the journal line:

      • 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 one of the following options to indicate the category of Goods Transport Agency (GTA) service:

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

      • Outward - inter unit/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.

      • Others – Select this option for all other categories of GTA services.

  8. On the Setup tab, in the Sales tax field group, select a sales tax group and an item tax group for the selected line.

  9. On the Purchase tab, in the Tax group, click Sales tax to view the calculation of the service tax in the Sales tax transactions form.

  10. Post the details of the purchase order.

The service tax is calculated from the sales tax group and the item sales tax group that you selected for the import order lines.


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

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