Share via


A Country-specific Update for Russia to Cancel Amount Differences in Tax Accounting in Microsoft Dynamics AX 2009 SP1

Federal law № 81-FZ from 20.04.2014 introduced changes in Chapter 25 of Russian Tax Code related to accounting of amount differences, which appear during payment in rubles of invoices issued in foreign currency. The term "amount differences" is disappeared from the text of Russian Tax Code, but the term "exchange adjustment" is expanded and will be applied also in case when invoice is issued in foreign currency, but payment is done in local currency (rubles).

Overview

Starting from 2015 year, rules for accounting of invoices issued in foreign currency (dated starting from 2015 year), which are paid in rubles, will be similar in business and tax accountings. In both accountings, currency exchange adjustment is accounted at payment date and at the end of reporting (tax) period. As before, for prepayments, there is no exchange difference neither in business no in tax accounting. Should be noted, that for invoices in foreign currency posted before 2015 year, the old regulation should be applied.

To support these news, the following changes are implemented in the system:

  1. Tax registers «Amount difference in tax accounting» and «Exchange adjustment in accounting» reflect only amount of exchange differences from invoices posted before 1 January 2015 year.

  2. Currency exchange differences for invoices (created either in result of periodic exchange adjustment calculation, or in result of settlement), posted after 1 January 2015 year, are reflected in tax registers which collect transactions by GL accounts (Incomes – current period, Outlays – other unrealized).

  3. For identification of currency exchange differences on GL accounts for tax purposes, dimension Expense code is filled - with code set up in expanded settings of exchange differences in form Exchange rates (version 5.0 SP1, or in form Currency parameters in version 6.2 and higher) – in voucher, posted in result of periodic currency exchange differences calculation in AR and AP modules.

  4. Check box "Exclude" appeared in settings of tax registers "Amount difference in tax accounting" and "Exchange adjustment in accounting." After this check box is activated, register will not be initiated in new tax registers journals. Settings

  1. Make sure that parameter "Amount difference in tax accounting before 01.01.2015" is switched on. For AX 2009 SP1 - In form Exchange rates --> tab Exchange adjustment --> Tab General For AX 2012 R2 and higher - In form Currency parameters --> Fast Tab General

  2. Make sure that Expense/Incomes codes for currency exchange difference are set up in fields Expense code, Revenue code: For AX 2009 SP1 - In form Exchange rates --> tab Exchange adjustment --> Tabs General, Sales/Customers, Purchase/Vendors For AX 2012 R2 and higher - In form Currency parameters --> Fast tabs General, Sales/Customers, Purchase/Vendors

  3. Set up Ledger accounts for Expense/income codes for currency exchange differences: In form Expense and Income codes --> Ledger account setup

  4. Assign Expense/Income codes for currency exchange difference to tax registers where currency exchange difference transaction will be collected (for example, Incomes – current period, Outlays – other unrealized): In form Tax register --> Expense codes

  5. As soon as transition period finishes (i.e. all invoices posted in 2014 year are paid), user can activate check box "Exclude" in settings of tax registers "Amount difference in tax accounting" and "Exchange adjustment in accounting" so that these registers won’t be initialized in newly created tax register journals. In form Tax register --> Tab General

Important Notice to Customers

We recommend that you contact your Microsoft Dynamics Partner before installing service packs or hotfixes. It is important to verify that your environment is compatible with the service pack(s), hotfix(es), or download(s) being installed. A service pack, hotfix, or download may cause interoperability issues with customizations, and third-party products that work with your Microsoft Dynamics solution.

Downloads

DynamicsAX2009-KB3016847-SP1.EXE [EXE - 13.3 MB]

Support Information

For technical support questions, contact your partner or direct your questions to the Support for Business hub: https://serviceshub.microsoft.com/supportforbusiness/create

CustomerSource Help and How-To Resources

To access the downloadable material within this content as previously found on CustomerSource, users will need to have the same customer account access. Click here to view more information.