Calculating and reporting taxes in Microsoft Dynamics® AX 2012

Tax management: Sales tax processing

Flexible setup and tax calculation

Tax codes specify settings and rules for calculating a specific sales tax.

Tax codes are grouped into sales tax groups and item sales tax groups.

Sales tax groups are assigned to data entities such as customer or vendor.

Item sales tax groups are assigned to specific items.

Sales tax codes within a given sales tax group and item sales tax group determine the taxes to be calculated for a transaction line.

2

Business value: Complete functionality for reporting and paying taxes

Sales tax reporting codes can be assigned to tax codes to calculate total taxes for periodic reporting.

A periodic sales tax payment job posts taxes to tax settlement accounts and generates tax reports in country/region-specific formats.

3

Sales tax conceptual model

4

Determining taxes example

5

Customer Line 1 / Item A Line 2 / Item B

The following diagram represents a sales order with two lines.

• Matching sales tax codes in the sales tax group and item sales tax groups are used to calculate and post taxes (tax codes B and H for line 1; C, E, and H for line 2).

Sales Tax Codes

Sales Tax Codes

AB

D

F

H

Sales Tax Codes

A

C

EF

H

BC

E

H

• Sales tax codes A–H are assigned to the sales tax group and item sales tax groups.

Sales Tax GroupItem Sales Tax

GroupItem Sales Tax

Group

• A sales tax group is assigned to Customer; item sales tax groups are assigned to Items A and B.

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