(IND) Post purchase transactions of excise using Invoice register form [AX 2012]

Updated: November 6, 2012

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

NoteNote

This topic has not been fully updated for Microsoft Dynamics AX 2012 R2.

You can post purchase transactions with excise details using the Invoice register form. The procedure is similar to posting transactions in the General journal form.

NoteNote

The excise registers will not be updated when you post a journal from the invoice register.

  1. Click Accounts payable > Journals > Invoices > Invoice register.

  2. Create a journal line in the invoice register. The procedure to create a journal line for excise transactions in the Invoice register form is similar to creating journal lines in the General journal form.

    NoteNote

    For more information see, "Create and validate a journal and journal lines" in the Application and Business Processes Help.

  3. Click General ledger > Setup > Sales tax > Item sales tax groups.

    The formula for the calculation of excise is defined in the Formula designer form as illustrated in the following table.

    Tax code

    Taxable basis

    Calculation expression

    BED

    Max. retail price

    AED

    Max. retail price

    SED

    Max. retail price

    +[BED]+ [AED]

    E-Cess

    Excl. line amount

    +[SED]

    SHE-cess

    Excl. line amount

    +[SED]

  4. Select the Price incl. tax check box for all the tax components in the Formula designer form. The excise rate percentage for BED is 10 percent, AED is 10 percent, SED is 5 percent, E-Cess is 1 percent, and SHE- cess is 1 percent.

  5. Validate and post the journal line in the Invoice register form.

    Example

    Suppose that you create an invoice journal in the invoice register. The credit amount in the journal line is INR 9,000, and the maximum retail price of the item is INR 6,000. The excise record type selected is RG23C. Set the claim percentage for CENVAT to 50 percent in the Claim percentage form.

    According to the example, excise is calculated in the Invoice register journal as follows:

    BED = (4,757.37*10%) = 475.74

    AED = (4,757.37*10%) = 475.74

    SED = (5,708.85*5/100) = 285.45; (4,757.37 + 475.74 + 475.74 = 5,708.85)

    E-cess = (285.44*1%) = 2.85

    SHE-cess = (285.44*1%) = 2.85

    Max. Retail Price = Tax basis + Excise = 4,757.37 + 1242.63 = 6,000

    NoteNote

    The tax basis and the taxes are calculated automatically by the Microsoft Dynamics AX application. The amount origin and the tax amounts calculated are displayed in the Temporary sales tax transactions form. An excise duty of INR 1,242.63 is calculated.

    When the journal is posted, the recoverable accounts of the tax components are debited with the 50 percent of the related excise taxes and the RG23C deferred accounts of the tax components are debited with the remaining 50 percent of the related excise taxes. However, the RG23C Part II register is not updated with the excise tax amount.


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