Sunday, 17 July 2016

Tax calculation on Net amount - Gotcha

In AX you have various ways of calculating tax. The one that is most confusing is calculating on the Net amount.  I thought I would show a few examples where you can get caught on this.

Notice below an example with negative lines. See how the distribution looks wrong but it is right. It distributes the rounded tax amount based on the total of the invoice.

2016-07-17_10-03-25

Another simpler example where the total of the invoice is zero. There is no tax calculated.

2016-07-17_9-56-57

There a few things you should consider when choosing this method.

  1. Do not add the Tax amount column on the Invoice report. This can make people say it is calculating incorrectly and you having to explain this problem. Standard AX does not have the tax amount column for this reason.
  2. If you are integrating with another system, make sure your method of calculating tax is the same. For example, if you are integrating an ecommerce web site with orders.

Download the excel file for a working example. Follow the instructions and enter your own values in the yellow cells. It will calculate based on the total, rounded to two decimal places.

xlsx

Note there are other methods of tax calculating, including line based.

Note: GST is Goods and Services Tax in Australia. It is set at a flat rate of 10%.

You can change the tax percentage in the file.

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