Microsoft Dynamics ® AX

Accounting Code for Payment of Service Tax

Last Updated: January 2014
AX 2012 R3 / Version 1.0.0
 Contents

Introduction..........................................................................................3
Audience...............................................................................................3
Scenario................................................................................................3
Before you begin..................................................................................3
Define service accounting codes setup.................................................4
Create and post purchase order with excise taxes................................6
Create and post sales order with service tax accounting code.............7
Sales tax settlement process.................................................................9
Service tax authority payment............................................................11
Conclusion..........................................................................................12
Disclaimer..........................................................................................12

Microsoft Dynamics AX 2012 Accounting Code for Payment of Service Tax Demo Script 2
 INTRODUCTION

This document steps through how Microsoft Dynamics AX 2012 R3 supports the service tax accounting code
functionality.
The primary objective of the demo script is to provide the user with an overview of the tax settlement with service
tax accounting code transactions with financial impact.

AUDIENCE
The scripts in this document can be used to demonstrate to a business decision maker (BDM), the value of Microsoft
Dynamics AX 2012 R3 and how the solution supports the settlement process which includes service tax accounting
code. The executives that you present to will find value in this script if they have an interest in:
 Creation of a purchase transaction
 Financial impact

SCENARIO
This script focuses on the following processes:
 Post a purchase transaction with Excise tax
 Post a sales transaction with Service tax
 Perform the tax settlement process
 Post the service tax authority payment
 Validate taxes are posted to the appropriate accounts

DEMO PRESET CONFIGURATION:

This script was written to work with the Microsoft Dynamics AX 2012 R3 RTM Virtual Machine (VM). Make sure
that the VM is up and running and that you have logged on. The script addresses key pain points and challenges that
different roles might face. However, the demo can be completed logged on as the system administrator.
 Domain: CONTOSO
 User: Administrator
 Password: pass@word1

BEFORE YOU BEGIN

Before you begin, please add the above login details to your environment in the demo data set and company Contoso
INMF.

Microsoft Dynamics AX 2012 Accounting Code for Payment of Service Tax Demo Script 3
DEFINE SERVICE ACCOUNTING CODES SETUP

Accounting supervisor
Define accounting code
1. Click File > Tools > Session date and time
2. Click the calendar icon and select 12/10/2013 in
the calendar
3. Click OK
4. Click General ledger > Setup > Sales tax >
India > Service codes

5. Select Service code Advertisin

6. Enter Accounting code 00440013
7. Select the Service code Cargo
8. Enter Accounting code 00440189
9. Select the Service code Profession
10. Enter Accounting code 00440480
11. Select the Service code Transport
12. Enter Transport agency by Road in the Name
field
13. Enter Accounting code 00440262
14. Click Close

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Define service codes
15. Click General ledger > Setup > Sales tax >
India > Tax components

16. Select Tax type Excise

17. Select Tax component BED
18. Click Tax setoff rule
19. Click New
20. Enter Setoff component Service Tax
21. Save the record
22. Click Service code
23. Click New
24. Select Transport Service code.
25. Click New
26. Enter Service code Profession
27. Click Save
28. Click Close for each form
End of the define service accounting codes setup

Microsoft Dynamics AX 2012 Accounting Code for Payment of Service Tax Demo Script 5
CREATE AND POST PURCHASE ORDER WITH EXCISE TAXES

Purchasing agent
1. Click Accounts payable > Common > Purchase
orders > All purchase orders.

2. On the Action pane, click Purchase order

3. Select Vendor account INMF-000005

4. Click the General FastTab
5. Select Site Site1
6. Select Warehouse11
7. Click OK
8. Select Item number M0013
9. Enter Quantity 500.00
10. Enter Unit price 100.00
11. Click the Line details FastTab
12. Click the Setup tab
13. Select Sales tax group ALL_STG
14. Select Item sales tax group Excise_KA
15. Click the Tax information tab
16. Select Excise type Manufacturer
17. Select Excise tariff code 4409 10 20
18. Select Excise record type RG23A
19. Save the record
20. On the Action pane, click the Purchase tab
21. In the Tax group, click Sales tax

Microsoft Dynamics AX 2012 Accounting Code for Payment of Service Tax Demo Script 6
 22. Validate the tax calculations
23. Close the Temporary sales tax transactions form
24. Click Confirm

Accounts payable clerk

25. On the Action pane, click the Invoice tab
26. In the Generate group, click Invoice.
27. Select Ordered quantity in the Default quantity for
lines field.
28. Enter Invoice INV0149
29. Enter Invoice date 12/10/2013
30. Click Post, and then click Post
31. Click OK
32. In the Journals group, click Invoice
33. Click the Overview tab
34. Click Voucher
35. Validate the voucher entries
36. Click Close for each form
End of the create and post a purchase order with a service tax accounting code
CREATE AND POST SALES ORDER WITH SERVICE TAX ACCOUNTING CODE

Sales Clerk

37. Click File > Tools > Session date and time
38. Click the calendar icon and select 12/10/2013 in the
calendar
39. Click OK
40. Click Accounts receivable > Common > Sales
order > All sales orders

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41. On the Action pane, on the Sales order tab, click
Sales order

42. Enter Customer account INMF-000001

43. Enter Site Site1
44. Enter Warehouse 11
45. Click OK
46. Select Item number S0001
47. Enter Quantity 1.00
48. Enter Unit price 10000.00
49. Click the Line details FastTab
50. Click the Setup tab
51. Select Sales tax group ALL_STG
52. Select Item sales tax group ST-KA
53. Click the Tax information tab
54. Select Service code Profession
55. Click Add line
56. Enter Item number S0003
57. Enter Quantity 1.00
58. Enter Unit price 20000.00
59. Click the Line details FastTab
60. Click the Setup tab
61. Select Sales tax group ALL_STG
62. Select Item sales tax group ST-KA
63. Click the Tax information tab
64. Select Advertising in the Service code field.
65. Click Add line
66. Enter Item number S0007
67. Enter Quantity 1.00
68. Enter Unit price 30000.00
69. Click the Line details FastTab
70. Click the Setup tab
71. Enter Sales tax group ALL_STG
72. Enter Item sales tax group ST-KA
73. Click the Tax information tab
74. Select Transport in the Service code field.

Microsoft Dynamics AX 2012 Accounting Code for Payment of Service Tax Demo Script 8
 75. On the Action pane, click the Sell tab
76. In the Tax group, click Sales tax

77. Validate the tax calculations

78. Click Close
79. Click Confirm

Accounts Receivable Clerk

80. On the Action pane, click the Invoice tab
81. In the Generate group, click Invoice
82. Select Quantity All
83. Click OK
84. Click OK
85. On the Action pane, in the Journals group, click
Invoice
86. Click Voucher
87. Validate the voucher entries
88. Click Close for each form
End of the create and post a sales order with a service tax accounting code
SALES TAX SETTLEMENT PROCESS

Accounting supervisor
89. Click General ledger > Periodic > Sales tax
payments > Sales tax payments

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90. Enter Tax registration group EX _ST
91. Enter Registration number ASDCE8796FST212
92. Select Settlement period Sr. Tax
93. Enter Date 12/31/2013
94. Enter Transaction date 12/31/2013
95. Click Tax adjustment

96. Click OK
97. Select the Update check box
98. Click OK
99. Click OK
100.Close the report

101.Click General ledger > Setup > Sales tax > Sales
tax settlement periods

Microsoft Dynamics AX 2012 Accounting Code for Payment of Service Tax Demo Script 10
 102. Select Settlement period Sr. Tax
103. Click Sales tax payment
104. Click Voucher
105. Validate the settlement voucher
106. Click Close for each form

End of the sales tax settlement process

SERVICE TAX AUTHORITY PAYMENT

Accounts payable payment clerk

107.Click File > Tools > Session date and time
108.Click the calendar icon and select 12/31/2013 in the
calendar
109.Click OK
110. Click Accounts payable > Journals >
Payments > Payment journal

111. Click New

112. Select Name VendPay
113. Click Lines
114. Select Account number INMF-000009
115. Click Function, and then choose Settlement
116. Select the transactions
117. Click Close
118. Select Offset account type Bank
119. Select Offset account IND OPER
120. Click Post, and then click Post
121. Click Close on the Infolog

122. Click Inquiries > Voucher

123. Validate the voucher
124. Click Close

End of the service tax authority payment

End of demo scripts

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CONCLUSION
This demonstration has stepped you through the creation of transaction and settlement with service
tax accounting code.
 Post a purchase transaction with excise tax
 Post a sales transaction with service tax
 Perform the tax settlement process
 Post the service tax authority payment
 Validate taxes are posted to the appropriate accounts

DISCLAIMER
© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista, Microsoft Dynamics and other product names are or
may be registered trademarks and/or trademarks in the U.S. and/or other countries. Other names and brands may be claimed as the property of
others.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this
presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of
Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.
Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE
OF THIS CODE REMAINS WITH THE USER.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS
PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY
RIGHTS IS GRANTED BY THIS PRESENTATION. Microsoft products are not intended for use in medical, life-saving, or life-sustaining
applications.
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business
decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software, automating and streamlining financial,
customer relationship and supply chain processes in a way that helps you drive business success.
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Worldwide +1-701-281-6500 www.microsoft.com/dynamics

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