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Tax and Admin Fee

  • 1.  Tax and Admin Fee

    TOP CONTRIBUTOR
    Posted 25 days ago
    Hello All,

    We are selling extended warranties which are taxable in some states and not in others. This we have no problem setting up, however, OK require an admin fee instead of tax. How would you go about setting that up so we charge an admin fee for OK instead of tax when we sell our customer a plan?

    Many Thanks - Rob

    Dynamics AX 2012 R3

    ------------------------------
    Robert Harriman
    The Eastwood Company
    Pottstown PA
    ------------------------------
    AXUG Summit - Post


  • 2.  RE: Tax and Admin Fee

    TOP CONTRIBUTOR
    Posted 23 days ago
    What do you do with that admin fee? do you keep it or do you need to pass it to the state?

    and how the admin fee is calculated? if it a fixed amount or a % of the warranty price?

    ------------------------------
    Zvika Rimalt
    Functional Consultant
    Vancouver BC
    ------------------------------

    AXUG Summit - Post


  • 3.  RE: Tax and Admin Fee

    TOP CONTRIBUTOR
    Posted 21 days ago
    Hello Zvika Rimalt,

    It is passed along to the state and it is 2%.

    Thanks

    ------------------------------
    Robert Harriman
    The Eastwood Company
    Pottstown PA
    ------------------------------

    AXUG Summit - Post


  • 4.  RE: Tax and Admin Fee

    TOP CONTRIBUTOR
    Posted 21 days ago
    From what you're describing this is different from sales tax by name only, and I do not see a reason why this cannot be set up in the same way "sales tax" is configured.

    ------------------------------
    Zvika Rimalt
    Functional Consultant
    Vancouver BC
    ------------------------------

    AXUG Summit - Post


  • 5.  RE: Tax and Admin Fee

    TOP CONTRIBUTOR
    Posted 20 days ago
    Zvika Rimalt,

    If we set it up the same way as tax, we would now be telling our OK customers we are collecting a tax amount which would be false, we're not going to do that. We already collect sales tax in OK. The item requiring the admin fee per OK state, is a service item. It is the only state charging an admin fee, not tax, for such items.  We need a clear way of separating/defining and identifying tax from an admin fee. If I sell a SKU and a service plan to a OK customer, I would collect tax on the SKU and an admin fee on the plan, that needs to be clear.

    Thanks - Rob

    ------------------------------
    Robert Harriman
    The Eastwood Company
    Pottstown PA
    ------------------------------

    AXUG Summit - Post


  • 6.  RE: Tax and Admin Fee

    TOP CONTRIBUTOR
    Posted 19 days ago
    Edited by Zvika Rimalt 19 days ago
    There is an out of the box configuration that you make your customer invoice print separately each sales tax code, making it clear the difference between "OK sales tax" and "OK service fee" added to the invoice.

    You will need to define 2 separate Tax Codes, and name them appropriately  - and hence your customers will not think "you're charging them sales tax incorrectly"
    From from the technical perspective of how they are setup, they will both be set up in the Tax module, with very similar settings.

    If you want to print the sales tax / admin fee separately for each sales order line, I don't think that's out of the box, but modifying the sales invoice printout to do that should not be hard.

    There are other ways to calculate/record fees, such as using sales charge codes - and that can work for you too, but if you do so you will be giving up on a lot of useful out of the box reporting and remittance functionality built into the Tax module that will make you life easier when tracking the service fee and remitting it to the government..

    ------------------------------
    Zvika Rimalt
    Functional Consultant
    Vancouver BC
    ------------------------------

    AXUG Summit - Post


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