Taxes in nav4

Hi guys! 1. What is the purpose of the " Expense/Capitalize Field" in the Tax details window and how it’s work? 2. How can I introduce a tolerance of 0.10 $ amount of taxes in all invoices. 3. I found that : When I create a PO with a vendor that set up with specific taxes, that tax does not appear on the PO header even if the “tax liable” field is checked. Is it a bug of nav4?? ( before it worked!!!) So, what I need to have is this : - My vendor ABC has a “tax area code” with: GST&PST - My receiving location XYZ for item A has a "tax area code : with : GST when creating a Po with vendor ABC where I buy Items A, for a location XYZ or anyother one ( without tax area code) , I dont want my tax area code changes in the line as it does now. Thanks for help.

Please guys any idea???

Hi Tatiana The tax will be a localisation. I can comment on how you would set the tolerance up in the UK but this will be meaningless to you, I cannot comment on point 1 as I do not have this field, not even sure I have that table. This probably leads to 3 being an issue with the localisation. You will either need to contact your NTR or whatever Microsoft call the national centres now if they have them, or hope someone with Canadian implementation experience reads your post.

Sorry, this is a Candian thing, from US help file, we get:

quote:

Expense/Capitalize Field The Tax Detail Table Describe here

A little more help from the ‘Sales Tax Amount Line Table’…

quote:

Expense/Capitalize Field The Sales Tax Amount Line Table This field contains a check box if the Tax Amount on this line will be debited to an Expense or Capital account, rather than to a Payable or Receivable account. This applies to purchases only.

Thanks guys for the point 1. Any ideas on other points??

On point 2, are you talking about tolerance in GST or sales tax. If sales tax, I’m not sure how to do it, nor why you would want it. If its the GST component, then Stevens advise should work. Zaryn, where did you get that help from? I may have the wrong help file.

Hi David! " Expense/Capitalize Field" is not custom for canada . it’s a standard field as I can see. I just forgot to mention that , i use job also and it worked before.

I know its not a custom field, its in the US/CA version, but since the US version has no online help, I was guessing that its only used in Canada, but I think its actually the Use tax field, and that I just have a problem with my online help. We have two threads running on this topic at the moment.

David, The help for that table is located in na_lf_t.chm on the Navision NA 4.0 release cd.

Hi Tatiana In the UK the tolerance setting will be in the Purchase or Sales set-up files that allows it in the modules, then the General Ledger set-up defines what you allow. I do not have a tax details screen, so I certainly don’t have a expense/capital field unless it is called something else. As VAT is a localisation it may get taken out of our version!

Steven, there is a translation issue in the US version, where they mixed up the words “Tax” and “VAT”, In the Canadian version they got it OK, but in the US there is still a mess with captions, and it does cause confusion as to when an issue is related to VAT, and when its Sales Tax. Add to that the addded complication of countries like Canada, New Zealand, Australia and (I think Brazil) that have BOTH VAT and Sales Tax, and its hard to remember whcih field is which. I think that the field e are talking about here is the Use Tax field, but am not sure. Either way, the field has no connection to VAT, and does not exist in databases that support only VAT. I probably added to the confussion here, since I was looking at 3.70 US, and I now see (thanks Zarryn) that they have redone the help in 4.00. Sorry for the confussion added, and I think lets leave this question to someone that knows Canadian tax.

The Expense/Capitalize has always been in the Canadian Version and was added to the North American Version when they were consolidated. The idea behind this field is to allow the taxes charged, on the Purchase side, to be posted directly to the Purchases Account rather than to the Tax Account. The tax value also goes to the inventory account as a direct cost. I think this is done to cover the case where taxes paid can’t be recovered (in Ontario, we can’t recover the provincial tax paid on any equipment or supplies for use within the business). ie Purchase Item for 100.00 with (7.00 GST and 8.00 PST). [Forgive my accounting skills, but here’s a shot] If you don’t Expense the PST, then the following should occur: Db Inventry 100 Cr Inventory Adjustment 100 Db Purchases 100 Db GST Account 7 Db PST Account 8 Cr Accounts Payable 115 If you do Expense the PST, then the following should occur: Db Inventry 108 Cr Inventory Adjustment 108 Db Purchases 108 Db GST Account 7 Cr Accounts Payable 115 Hope this helps.

Thanks chrisk. It helps a lot

Tatiana, sorry for the confussion, Cris thanks for the clarification. Going through it now, I see that functionaly this field does a similar thing to Use Tax in the US, but is different. And I thought US Sales Tax was hard, life must be fun up there. [:D]

Ok Guys! Now what about the 2 other points: 2. How can I introduce a tolerance of 0.10 $ amount of taxes in all invoices. 3. I found that : When I create a PO with a vendor that set up with specific taxes, that tax does not appear on the PO header even if the “tax liable” field is checked. Is it a bug of nav4?? ( before it worked!!!) So, what I need to have is this : - My vendor ABC has a “tax area code” with: GST&PST - My receiving location XYZ for item A has a "tax area code : with : GST when creating a Po with vendor ABC where I buy Items A, for a location XYZ or anyother one ( without tax area code) , I dont want my tax area code changes in the line as it does now. PS: I Guess I should create 2 separate topics for those questions. Sorry!

  1. If you are looking to enter a tolerance for taxes only of .10, then you can’t do that. If you are looking to add a tolerance of .10 on the entire order, then Payment Tolerances should probably work for you (In this case, you can assume that all tolerances are for taxes as you don’t enter the taxes vs. regular amount on the payments/cash receipts). 3. What you are saying here is that you don’t want the Tax Area Code to come off of the Location for a Purchase Order? That is the way Navision works and for any other option, it would be custom. Am I mis-interpretting something here?
  1. What is the reason or need for a tax tolerance? If you are trying to account for differences in calculated tax in Navision vs. your vendors system then you should be able to use the “Tax Difference” field on the Purchase Order Statistics" screen (it is hidden by default).

Yes chrisk, you’re right and it’s not work the way i want. So it’s custom. Thanks guys!