Hi, Can anyone tell me what is the best way to capture sales tax on purchase order with dynamic GL account? For example, purchase supplies with XXXX GL account, and the sales tax post to the same XXXX GL expense account. The customer does want to retain the original price and separate the tax associate with the purchase. And they don’t want to post a separate sales tax account. Currently what they are doing is manually add new lines and calculate the sales tax. The order is like a blanket order, therefore there are a lot of tax lines. Thanks, Trin
I don’t know the exact sales tax requirements for the US, but from a technical standpoint you could modify the accounts assignation for these tax entries in the posting process. You should look for “Tax Account (Purchases)” in codeunit 90 (appears twice), and replace this field by the value you need. Additionally it might be necessary to modify codeunit 12 aswell (search for “Tax Account (Purchases)” again), but I am not sure if the US version really makes use of these functions in C12. Saludos Nils
In tax jursdiction table you have tax account Sales and Tax Account Purchase. You need to setup for each jurisdiction the accounts.
Hi Trin, glad to see you stuck with Navision. Basically I think you mean a sales order, since there is no sales tax on a purchase order, but I know it is common in the US to call a sales order a purchase order, since the customer is king, and the king is purchasing [:D]. Anyway, just use resources, it is the simplest solution. You can create a differnt resource for each tax group and just select that Resource for the sale.
Hi Trin This is standard functionality in the North American Sales Tax. You will want to use the Expense/Capitalize Field in the Sales Tax setup. This field calculates Sales Tax automatically, the same way regular sales tax works, but posts the tax with the expense account (dynamically). To speed the data entry up you can assign a tax Group Code to the GL account (purchases in your example) which will default in this piece. Normally when purchasing the tax area code comes from the location. Derek
Trin, do you mean “use tax”.
…somehow I knew my knowledge on US sales tax wouldn’t be sufficient to answer this question from a functional point of view… at least it was a try [;)] This “Expense/Capitalize” option raised my interest (as a customer is using a US version), but I only could find some code in the purchase part of Navision, it looks like this option is not available for Sales - is this correct? Saludos Nils
I think that Trin is trying to implement Use tax, and that is the confussion. Use tax is where you buy something that if sold would incur sales tax, but you in fact use it internally, so there is no sale, and thus no Sales Tax. In this case you need to pay the local authorities tax as though you did sell the item, but in no way is this sales tax. Unfortunatley the issue is confussed by the US practice of calling a sales order a purchase order. Even though I am now used to it, it is very annoying and confussing.
Hi all, I am sorry for all these confusion I made. I do mean use Tax. The Expense/Capitalize Field in the Sales Tax setup does exactly what I want. Thank you all for all the help. Trin[:D]
No Problem, I just caused the same confussion by trying to get involved in Canadian tax with Rosine. Taxes still remain as that thing that is always going to be country specific. Wouldnt it be graet if the whole world just went to VAT [:D]