Sales tax settlements

hi all

I have one query , how to do Sales tax settlements in AX 2009?


and in

period >

tax be settled

can u tell me the setups and step by step how to do sales tax settlement??

can u tell me the setups and step by step how to do sales tax settlement??

There are some options and variables for sales tax settlements. Depending on parameter settings and country configuration the screens have different fields and options. You can process sales tax payments manually, automatically or as a vendor payment in your regular check run. It’s too much to go into here so the following just describes the latter:

Go to General Ledger > Setup > Sales Tax > Sales Tax Authorities. Assign a vendor to the sales tax authority(ies) if not already set up.

Go to General Ledger > Periodic > Sales Tax Payments > Sales Tax Payments. This session will calculate the payment . In this session you select the settlement period, the dates, and “Original” and check the “update” box. (Note: You can first run this process without the “update” box checked to just generate a report ). This will calculate the payment amount (assuming that your payable taxes are higher than your receivable taxes) and make a general ledger entry for the tax liability (e.g. ‘sales tax payable’ to ‘accounts receivable’). To see the posted voucher go to General Ledger > Setup > Sales Tax > Tax Settlement Periods > press the “Sales Tax Payments” button > select the payment > press the “Voucher“ button.

The actual payment to the tax authority is now just treated like every other vendor invoice. When you run your next payment proposal the payment for the tax authority should show be proposed and can be included in the check run.

Hope this helps,

Karin Espelage
Independent Dynamics AX consultant

Thanks karin for your detailed process description

but one thing please clarify, after running this periodic run for sales tax payments, is is create payment journal automatically or after running this sales tax payments, by taking this amount , we have to create a payment journal for sales tax payments???

No, it’s not creating the payment journal automatically. What it does is basically creating an open invoice for the vendor (the tax authority) that you would then pay like every other invoice:

If you would want to pay just this one invoice separately then you would enter a payment journal, enter the vendor number, press the Functions button → select Settlements → mark the open transaction → close the screen → Generate the payment (Check or file for bank) → Post the journal

If you would want to pay it when you pay all your vendor invoices (most companies have weekly payment runs for that to create the checks or bank files) then the system will pick it up when you create your payment proposal for all the vendor invoices.

Hope this explains it. ~Karin