(IND) Calculate service tax for a purchase order
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, Microsoft Dynamics AX 2012
Use the Purchase order form to calculate the service tax for a vendor. You can specify the service code and service category for vendors and foreign vendors before you post the purchase order.
Click Accounts payable > Common > Purchase orders > All purchase orders. On the Action Pane, on the Purchase order tab, in the New group, click Purchase order.
–or–
Click Procurement and sourcing > Common > Purchase orders > All purchase orders. On the Action Pane, on the Purchase order tab, in the New group, click Purchase order.
In the Create purchase order form, enter the required information, and then click OK. For more information about this form, see Create a purchase order.
In the Purchase order form, in the lower pane, on the Line details FastTab, click the Tax information tab.
In the Service tax field group, in the STC number field, select the service tax code (STC) number of the company. The STC number is used to identify the ledger accounts that the service tax amounts are posted to.
In the Service code field, select the service code that is attached to goods of the type Service.
Note
In AX 2012 R3 and cumulative update 6 or later for AX 2012 R2: The accounting code for the service is updated in the Accounting code field based on the service code that you select. For more information, see (IND) Set up service codes for service goods.
Depending on the version that you are using, do one of the following:
In AX 2012 R3 and cumulative update 6 or later for AX 2012 R2: In the Service category field, select one of the following options to specify the service category for the journal line:
Inward – Select this option when you purchase goods from a vendor.
Inter unit or input – Select this option when you transfer goods between two units within your legal entity, or from the legal entity to a subcontractor for additional processing. For example, you can select this option when the goods are manufactured in one unit, and then transferred to the packing unit of your legal entity.
Others – Select this option for other service categories for which input tax is paid. The input tax amount for this category is posted to the expense account instead of the recoverable account or the interim recoverable account.
In Microsoft Dynamics AX 2012 R2: In the GTA service category field, select one of the following options to indicate the category of goods transport agency (GTA) service:
Inward – Select this option when you purchase goods from a vendor.
Outward - inter unit/input – Select this option when you transfer goods between two units within your legal entity, or from the legal entity to a subcontractor for additional processing.
Others – Select this option for all other categories of GTA services.
On the Action Pane, on the Purchase tab, in the Tax group, click Sales tax to view the calculation of the service tax.
Post the purchase order.
See also
(IND) Calculate service tax for purchase order credit note transactions
(IND) Purchase orders (modified form)