D365 Finance & Operations and Dynamics AX Forum

Sales tax options with early payment discounts on sales orders

  • 1.  Sales tax options with early payment discounts on sales orders

    Posted Sep 25, 2019 06:14 PM

    In Canada we have 2 types of taxes in some provinces, GST federal and PST provincial. When we provide a cash discount for early payment (of sales order invoice) to a customer, we want to have AX 2012 R3 CU13 automatically calculate taxes where the PST amount is calculated after the cash discount is applied, and the GST amount is calculated before the cash discount is applied. So far we have not seen any functionality this granular and we are wondering if there are any solutions to the problem?

    An example with numbers: Currently a sales order invoice subtotals $1,000 (and invoice total with taxes $1110) and there is a 2% early payment discount setup. The 5% GST is $50 and the 6% PST is currently calculating at $60 but we want AX to calculate PST at $58.80. AX is currently expecting $1090 payment ($20 early pay discount) but we want it to be expecting $1088.80 instead. The PST $58.80 = $60 less the 2% early discount.

    Summary: We need AX to apply only the PST tax to the total selling price of the goods after deducting any early payment discount.

    We do see some functionality in the GL parameters under sales tax and tax options called "deduct cash discount before sales tax calculation" but this is not the solution.

    Any (hopefully out of the box) help would be appreciated!

    Ron Sommerfeld
    Support Analyst
    Pason Systems Inc.
    Calgary AB
    Academy - Online Interactive Learning from Experts

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