(IND) Calculate sales tax on a sales order
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2
When you invoice a purchase order or a sales order, a product receipt is created. A product receipt resembles the goods receipt note that is specific to India.
When you create a sales order, the tax form type, the sales tax group, and the item sales tax group are displayed in the line details of the sales order line. The tax type and groups are based on the values that are attached to the sales order.
Click Accounts receivable > Common > Sales orders > All sales orders. On the Action Pane, on the Sales order tab, in the New group, click Sales order.
In the Create sales order form, enter the required details.
On the Line details FastTab, on the Setup tab, in the Sales tax group field, select the sales tax group to use when calculating the sales tax for the sales order.
In the Item sales tax group field, select the group of sales tax codes that is calculated for an item.
On the Sales order lines FastTab, click Add line.
In the Item number field, select the item number.
In the Quantity field, enter the quantity of the item. You can view the amount details in the following fields:
Net amount – The net amount of the transaction. If the amount for the quantity is preceded by the negative sign, the net amount on the order line is also a negative value. Therefore, the Assessable value field also displays an amount with a negative value.
Assessable value – The net amount and the charges on the order line, if the taxable basis of a tax code is the assessable value. The values in this field can be changed, and the amount can be a positive or negative value.
For example, an order line is created for 100 pieces of an item that is priced at the rate of INR 12. The net amount is INR 1,200. However, additional charges for the order line are INR 200 for freight and INR 300 for insurance. If the basis of calculation of a tax code is the assessable value that is displayed in the Formula designer form, the Assessable value field displays 1,700. This is the sum of 1,200 + 200 + 300. If the insurance is changed to INR 600, the basis of calculation of the sales tax is 2,000. This is the sum of 1200 + 200 + 600.
If a sales order line has –10 items that cost INR 100 each, the net value and the assessable value of the order line are INR –1,000.
Max. retail price – On the Line details FastTab, on the Price and discount tab, this field automatically displays the maximum retail price. However, the value in this field can be modified. The debit or credit type of the value in the Max. retail price field must be based on the quantity and value of the item. You cannot enter a negative value in the Max. retail price field.
On the Line details FastTab, on the Tax information tab, in the Location field, select the appropriate address. The address of the organization is displayed in the Address field. Based on the selection, the corresponding tax registration number is displayed in the Registration number field.
In the Sales tax group, in the Form type field, select the type that is relevant to the state code of the customer.
On the Sales order lines FastTab, click Financials > Maintain charges to attach the charges code to the item lines, and then close the form.
On the Action Pane, on the Sell tab, in the Tax group, click Sales tax to open the Temporary sales tax transactions form and view the details of the sales tax amount for the transaction that is displayed.
Click the Adjustment tab to adjust the sales tax amount, if it is required, and then click Apply.
Click Formula designer. In the Formula designer form, the calculation expression that is defined for each tax code in the item sales tax sales group is displayed. The fields in this form cannot be modified.