(IND) Calculate TCS on payments and bills of exchange [AX 2012]

Updated: November 17, 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 use the Tax Collected at Source (TCS) amounts that are automatically calculated or you can adjust them.

For payments made against an invoice, the following conditions apply:

  • TCS will not be calculated if it has already been calculated at the invoice level, if the payment amount and invoice amount are the same.

  • TCS will not be calculated if the invoice amount, including the TCS amount, exceeds the payment amount.

  • TCS will be calculated on the amount that exceeds the invoice amount, if the invoice amount, including the TCS amount, is less than the payment amount.

  1. Click General ledger > Journals > General journal.

    –or–

    Click Accounts payable > Journals > Invoices > Invoice journal.

    –or–

    Click Accounts payable > Journals > Payments > Payment journal.

    –or–

    Click Accounts receivable > Journals > Payments > Payment journal.

    –or–

    Click Accounts receivable > Journals > Bill of exchange > Draw bill of exchange journal.

    –or–

    Click Accounts receivable > Journals > Bill of exchange > Redraw bill of exchange journal.

    –or–

    Click Accounts receivable > Journals > Bill of exchange > Protest bill of exchange journal.

  2. Click Lines.

  3. Select a customer or a vendor in the Account field.

  4. Click Functions > Settlement.

  5. In the Open transaction editing form, select a specific invoice to settle.

    If TCS is already calculated for the invoice, the base amount that TCS is calculated on is displayed in the Amount origin field, and the TCS amount calculated for the transaction is displayed in the TCS field.

    The total payment amount, including the TCS amount, is displayed in the Amount field on the Payment tab. Close the form.

  6. In the Journal voucher form, the default TCS group defined for the customer is displayed in the TCS group field and can be changed. The TCS calculated on journal lines is based on the formula defined for the TCS tax codes in the TCS group.

    NoteNote

    TCS is calculated only if the Calculate withholding tax check box is selected for the vendor or customer on the Setup tab of the Vendors form or the Customers form.

  7. Click the Tax information tab. The company name is displayed in the Name field. You can select a company name and alternate address.

  8. Click Withholding tax > Withholding tax to open the Temporary withholding tax transactions form, where you can view calculated and adjusted TCS amounts.

  9. Click Threshold to open the Threshold form, where you can view the threshold limit defined for the TCS tax component that is attached to a specific TCS tax code in this form.

  10. Click Designer to open the Formula designer form, where you can view the formula that is defined for a specific TCS tax code in this form.

  11. Close the Threshold form, Formula designer form, and the Temporary withholding tax transactions form to return to the Journal voucher form.

  12. Validate and post the journal.

    NoteNote

    The TCS amount calculated on payments is posted to the payable account defined for each TCS tax code in the TCS group. The payable accounts for TCS tax codes are defined in the Withholding tax codes form.

  13. In the Journal voucher form, click Inquiries > Voucher to open the Voucher transactions form. Click Posted withholding tax to open the Withholding tax transactions form.

    The total percentage used to calculate TCS for the transaction is displayed in the Value field.

    The fields on the Overview, General, and Amount tabs in the Withholding tax transactions form display the TCS information that is calculated for the TCS group attached to the transaction. You can view the TCS calculation information for each TCS tax code that is attached to the TCS group in this form.


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

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