Hi All,
Below scenario is on Indian Service Tax → (Payment to Invoice)
In AX 2012 R2 CU 6 (Indian localization), we are trying to Post three different advance payment to the vendor which includes the Service tax with POT rule, Service Tax reverse charge rule and Service Tax Cash basis rule.
Before posting the Advance payment we make sure that the service tax is calculating and then posted the Transaction. In the Lines the amount entered was 10,000.00 and service tax @ 12.36% was calculated at 1236.00. Now if we check the vendor transaction then we see only 10,000.00, But i hope it should show 11,236.00 (10,000.00+1,236.00). As we are paying the vendor including the service tax.
The same scenario we tried in the Account receivable for Customer. The transaction effect was the same as in happened in the Vendor Transaction.
For the Advance payment to vendor or for the Advance receipt from the customer transaction, If we check the All related vouchers it shows the Service tax calculated and posted to the respective ledgers, which does not reflect in the Vendors/Customer balance.
The above scenario leads to the wrong accounting of service tax calculation and the balances of Vendor/Customer are affected after posting Purchase Invoice and Sales Invoice.
We also tested the Invoice to Payment for both Customer and Vendor, Which worked very well.
Please let me know your valuable suggestions.
Regards,
Sandesh