(IND) Set up threshold limits

Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2

Before you can set up thresholds and concession certificates for direct tax calculations, you must create threshold definitions and set up threshold hierarchies. Follow the steps in this topic to set up threshold limits.

Note

This topic does not apply to versions of Microsoft Dynamics AX 2012 prior to cumulative update 7 for AX 2012 R2.

This task is part of a bigger process

The following illustration shows how threshold limits setup relates to direct tax calculation tasks.

For an overview of the process, see (IND) Tax thresholds and tax concession certificates.

Prerequisites

The following table shows the prerequisites that must be in place before you start.

Category	Prerequisite
Version	Microsoft Dynamics AX 2012 R2 with the hotfix in KB2850782
Country/region	The primary address for the legal entity must be in the following countries/regions: India

Set up a threshold definition

Use the Threshold definitions form to create a threshold definition or a copy of an existing threshold definition. You can also view the list of referencing entities that use the selected threshold.

To set up a threshold definition, follow these steps:

1. Click General ledger > Setup > Threshold definitions.

2. To create a new threshold definition, follow these steps:

   1. Click New or press CTRL+N to create a threshold definition record.

   2. In the Name and the Description fields, enter a name and a description for the threshold definition record.

   –or–

   To create a copy of an existing threshold definition, follow these steps:

   1. Select a threshold to copy, and then click Copy threshold to create a copy of the threshold definition record.

   2. In the Name and the Description fields, enter a name and a description for the copied threshold definition record.

You can click Referenced by to open the Threshold reference list form, where you can view the list of referencing entities that use the selected threshold.

Note

You can’t delete a threshold definition that is currently referenced by an entity. You must delete the threshold from all of the referencing entities before you delete the threshold.

Design the threshold hierarchy structure

Use the Threshold designer form to create a hierarchy structure for a threshold definition. You can design a hierarchy structure in the following ways:

• Single threshold hierarchy – This structure contains a single threshold segment.

• Progressive threshold hierarchy – This structure contains multiple threshold segments. You can specify multiple segments in a single level or in multiple levels. For example, you can create a threshold hierarchy structure with the following segments.

  Segment	Minimum value	Maximum value
  Segment one	0	1,00,000
  Segment two	1,00,000	5,00,000
  Segment three	5,00,000	-

To design a hierarchy structure for a threshold definition, follow these steps:

1. Click General ledger > Setup > Threshold definitions.

2. Select the threshold definition to design the threshold hierarchy for, and then click Threshold designer.

3. In the Threshold designer form, select the node to create the segment for, and then click New or press CTRL+N to create a threshold segment.

4. In the Effective from field, select the date from which the threshold values are effective.

5. In the Effective to field, select the date until which the threshold values are effective.

6. In the Lower limit and Upper limit fields, select the starting and ending points of the threshold segment.

7. In the Type field, select the type of threshold to apply to the selected segment.

   Use the following table to decide what type of threshold to apply to the selected threshold.

   Option	Description
   Cumulative	Select this option to apply the threshold segment to cumulative transaction values.
   Per transaction	Select this option to apply the threshold segment to individual transaction values.
   Per transaction line	Select this option to apply the threshold segment to individual transaction line values.

   You must specify different calculation methods for overlapping date ranges and overlapping limit ranges for threshold segments at the same hierarchy level.

8. If the selected segment is the final level in the threshold structural hierarchy, select the Final level check box.

9. Repeat steps 3 through 8 to create additional segments.

Note

You can't delete a parent segment for a threshold hierarchy that has child segments. You must delete the child sections before you can delete the parent.

Next step

You have finished setting up threshold limits. Continue to set up thresholds and concession certificates for tax calculations. For more information, see (IND) Set up thresholds and concession certificates for tax calculations.

Technical information for system administrators

If you don't have access to the pages that are used to complete this task, contact your system administrator and provide the information that is shown in the following table.

Category	Prerequisite
Configuration keys	No configuration key is required for this task.
Security roles and duties	To set up threshold limits, you must be a member of a security role that includes the following duties: Enable sales taxes process (TaxSalesTaxesProcessEnable) Inquire into sales tax process reference data (TaxSalesTaxProcessReferenceDataInquire)
Security roles and privileges	To set up threshold limits, you must be a member of a security role that includes the following privileges: Maintain withholding tax codes (TaxWithholdTableMaintain) View withholding tax codes (TaxWithholdTableView)