MICROSOFT DYNAMICS® AX

2012 R2

TAX COLLECTED AT SOURCE

January 2013
Version 1.0.0
 Contents

Introduction................................................................................................3
Audience.....................................................................................................3
Scenario......................................................................................................3
Before you begin........................................................................................4
TCS setup...................................................................................................4
Order to Cash............................................................................................17
customer Advance payment.....................................................................20
TCS settlement process............................................................................21
Authority payment....................................................................................24
TCS statement..........................................................................................25
TCS certificate process.............................................................................28
TCS inquiry..............................................................................................28
Conclusion................................................................................................30
Disclaimer................................................................................................31

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 2

INTRODUCTION
This document demonstrates how Microsoft Dynamics Ax2012 R2 supports TCS functionality.
The primary objective of the demo script is to provide the user with an overview on the TCS setup and posting of
transaction with financial impact.

AUDIENCE
The scripts in this document should be used to demonstrate the value of Microsoft Dynamics AX 2012
R2 and how the solution support transactions with TCS execution to a
business decision maker (BDM). The executives that you present to will find value in this script if
they have and interested in:
 Creation of Sales order
 Creation of Advance payment
 View financial entries with TCS
 Authority settlement process
 TCS statement/Certificate
 TCS inquiry

SCENARIO
This script focuses on the following processes:
 TCS setup in AX2012
 Order to Cash
 Customer Advance payment
 Authority settlement process
 TCS statement/certificate process

DEMO PRESET CONFIGURATION:

This script was written to work with the Microsoft Dynamics AX 2012 R2 RTM Virtual Machine (VM), released in
December 2012. 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 as the system
administrator.
 Domain: CONTOSO
 User: Administrator
 Password: pass@word1

BEFORE YOU BEGIN

Before you begin please add the following to your environment in demo data set and company Contoso INMF:
Use the following log in details:

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 3

  Domain: CONTOSO
 User: Administrator
 Password:pass@word1

TCS SETUP
Use this procedure to create TCS setup.

General ledger parameters

Accounting supervisor

1. Navigate to General ledger > Setup > General

ledger parameters

2. Click tab Direct taxes

3. Mark Activate TCS checkbox
4. Mark Invoice checkbox
5. Mark Payment checkbox
6. Click button Close

Create Chart of accounts

1. Navigate to General ledger > Common forms >

Main accounts

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 4

2. Click New Main account

3. Set field Main account = 202113

4. Set field Name = TCS Scrap Company
5. Click fast tab General
6. Set field Main account type = Asset
7. Click fast tab Setup
8. Set field Posting type = Withholding tax (TCS)
9. Click New
10. Set field Main account = 132540
11. Set field Name = TCS Scrap Company
12. Click fast tab General
13. Set field Main account type = Asset
14. Click fast tab Setup
15. Set field Posting type = Withholding tax (TCS)
16. Click button Close

Create Registration number

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 5

1. Navigate to Organization administration > Setup
> India > Enterprise tax registration numbers

2. Select field Select tax = Direct tax

3. Select field Registration number type = Company
4. Click New
5. Set field Registration number = AXDF87645F
6. Set field Description = TAN Number
7. Click fast tab General
8. Set field Circle number = 47
9. Set field Ward number = (1)
10. Set field Assessing officer = 1
11. Save the record
12. Click button Close

Define Registration number to the Legal entity

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 6

1. Navigate to Organization administration > Setup
> Organization > Legal entities

2. Click Taxes

3. Click fast tab Tax information

4. Click Add

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5. Set field Name or description = Taxinfor_001
6. Mark Primary checkbox
7. Click fast tab Withholding tax
8. Set field Registration number = AXDF87645F
9. Close forms

Withholding tax component groups

1. Navigate to General ledger > Setup > Withholding

tax > Withholding tax component groups

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2. Set field Tax type = TCS
3. Create new record
4. Set field Withholding tax component groups = Scrap
5. Set field Description = Scrap
6. Click fast tab General
7. Set field Status = Resident
8. Set field Section code = 206C

9. Click button Certificate

10. Click button Create certificates
11. Set field Prefix = IN
12. Set field Quantity = 10
13. Click button OK
14. Close form

Withholding tax components

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1. Navigate to General ledger > Setup > Withholding
tax > Withholding tax components

2. Set field Tax type = TCS

3. Click New
4. Set field Withholding tax component = Scrap
5. Set field Withholding tax component groups = Scrap
6. Click fast tab General
7. Set field Description = Scrap
8. Click button Close

Create Vendor authority

Accounts payable manager

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 10

1. Navigate to Accounts payable > Common >
Vendors > All vendors

2. Click New Vendor

3. Set field Name = TCS Authority (KAR)
4. Set field Group = 50

5. Click fast tab Addresses

6. Click Add
7. Set field Name or description = Invoice
8. Set field Country/region = IND
9. Set field ZIP/postal code = 560051
10. Click button OK
11. Click button Close

Create Withholding tax authority

Accounting supervisor

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1. Navigate to General ledger > Setup > Withholding
tax > Withholding tax authorities

2. Set field Tax type = TCS

3. Click New
4. Set field Withholding tax authority = TCS Authority
5. Set field Description = TCS Authority (KAR)
6. Click fast tab General
7. Set field Vendor account = INMF-000012
8. Click button Close

Withholding tax settlement period

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 12

1. Navigate to General ledger > Setup > Withholding
tax > Withholding tax settlement period

2. Set field Tax type = TCS

3. Click New
4. Set field Settlement period = TCS
5. Set field Description = TCS_KA
6. Set field Withholding tax authority = TCS Authority
Set field Period interval = Months
7. Set field Number of units = 1
8. Click fast tab Periods
9. Click Add
10. Set field From date = 4/1/2010
11. Set field To date = 4/30/2010
12. Click button New period, to create period as required
13. Click button Close
Withholding tax codes

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 13

1. Navigate to General ledger > Setup > Withholding
tax > Withholding tax code

2. Click New
3. Set field Withholding tax code = Scrap
4. Set field Name = TCS_Scrap
5. Click fast tab General
6. Set field Tax type = TCS
7. Set field Withholding tax component = Scrap
8. Set field Main account = 202113
9. Set field Settlement period = TCS
10. Set field Receivable account = 132540
11. Click button Values
12. Click New
13. Set field Value = 1.00
14. Close forms
Withholding tax groups

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 14

1. Navigate to General ledger > Setup > Withholding
tax > Withholding tax groups

2. Click New
3. Set field Withholding tax group = Scrap
4. Set field Description = TCS_Scrap
5. Set field Tax type = TCS
6. Click fast tab Setup
7. Click Add
8. Set field Withholding tax code = Scrap
9. Mark Overlook threshold checkbox
10. Click button Designer
11. Click Ctrl+N
12. Set field Tax code = Scrap
13. Set field Taxable basis = Gross amount
14. Close forms

Withholding tax reporting codes

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 15

1. Navigate to General ledger > Setup > Withholding
tax >India >Withholding tax reporting codes

2. Set field Tax type = TCS

3. Click New
4. Set field Withholding tax component = Scrap
5. Set field Withholding tax component group = Scrap
6. Click fast tab General
7. Set field Reporting code = TCS
8. Close forms

Customer form
Accounts receivable manager

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 16

1. Navigate to Accounts
receivable>Common>Customers>All customers

9. Select Customer account = INMF-000004

10. Click on Edit
11. Click fast tab Invoice and delivery
12. Mark Calculate withholding tax checkbox
13. Set field TCS group = Scrap
14. Click button Close

End of TCS setups

ORDER TO CASH
Set Session date = 04/13/2012

Sales Clerk

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 17

1. Navigate to Accounts Receivable > Common >
Sales orders > All sales orders

2. On Action pane, Click Sales order

3. Set Customer account = INMF-000004

4. Set field Site = Site1
5. Set field Warehouse = 11
6. Click button OK
7. Set Item number= M0003
8. Set Quantity = 1632
9. Set Unit price = 833
10. Click Product and supply > Withholding tax

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 18

11. Click button Withholding tax
12. Close form

Accounts Receivable Clerk

13. On Action pane, Click Invoice > Invoice

14. Set field Quantity = All
15. Click OK
16. Click OK

17. On action pane, Click Invoice Journals

18. Click Voucher
19. Validate voucher entries
20. Close form

Set Session date = 04/18/2012

Accounts receivable payment clerk

21. Navigate to Accounts receivables > Journals >

Payments > Payment journals

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 19

22. Click New
23. Set field Name = CUSTP
24. Click button Lines
25. Set field Account = INMF-000004
26. Click menu button Functions > Settlement
27. Select Invoice number = INMF-000026
28. Click button Close

29. Set field Offset account type = Bank

30. Set field Offset account = INR OPER
31. Click menu button Post > Post
32. Close Infolog

33. Click menu button Inquiries > Voucher

34. Close forms

CUSTOMER ADVANCE PAYMENT

1. Navigate to Accounts receivables > Journals >

Payments > Payment journals

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 20

2. Click New
3. Set field Name = CUSTP
4. Click button Lines
5. Set field Account = INMF-000004
6. Set field Credit = 100000.00
7. Set field Offset account type = Bank
8. Set field Offset account = INR OPER

9. Click menu button Withholding tax > Withholding

tax

10. Click menu button 'Post > Post'

11. Click menu button Inquiries > Voucher
12. Close forms

End of Customer advance payment scenario

TCS SETTLEMENT PROCESS

Use this procedure to execute TCS settlement process.

Accounting supervisor/Accountant

1. Navigate to General ledger > Periodic > India

withholding tax > Withholding tax payment

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 21

2. Set field Tax type = TCS
3. Set field Tax Account Number (TAN) =
AXDF87645F
4. Set field Settlement period = TCS
5. Set field From date = 04/01/2012
6. Set field Transaction date = 04/30/2012
7. Mark Update checkbox
8. Click OK

1. Navigate to General ledger > Setup > Withholding

tax> India > Withholding tax settlement period

2. Set field Tax type = TCS

3. Select Settlement period = TCS
4. Click button Withholding tax payment

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 22

5. Click button Voucher
6. Close form

End of TCS settlement scenario

AUTHORITY PAYMENT
Use this procedure to process authority payment

Set session date = 04/30/2012

Accounts payable payment clerk

1. Navigate to Accounts payable > Journals >

Payments > Payment journals

2. Click New
3. Set field Name = VendPay
4. Click button Lines
5. Set field Account = INMF-000012
6. Click menu button 'Functions > Settlement'

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 23

7. Mark Transactions
8. Click button Close

9. Set field Offset account type = Bank

10. Set field Offset account = INR OPER
11. Click menu button 'Post > Post

12. Close Infolog

13. Click menu button Inquiries > Voucher
14. Validate voucher entries
15. Close forms

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 24

16. Click menu button Withholding tax > Challan
information
17. Set field Challan number = 14660
18. Set field Date = 04/30/2012
19. Set field Bank name = INR OPER
20. Set field BSR code = 007
21. Close forms

End of Authority payment scenario

TCS STATEMENT
Accountant/Accounting supervisor

1. Navigate to General ledger > Reports >India >

TCS >TCS statement

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 25

2. Set field Tax Account Number (TAN) =
AXDF87645F
3. Set field Statement = Form 27EQ
4. Set field Date = 04/30/2012
5. Set field Responsible person = 000001
6. Set field Designation = Manager
7. Set field Printing date = 07/01/2012
8. Mark Generate e-file checkbox
9. Set field File name = D:\TCS\27EQ.txt
10. Mark Filed checkbox
11. Click button OK
12. Close form

1. Navigate to General ledger > Periodic > India

withholding tax > TCS token numbers

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 26

2. Set field Token number = 14588
3. Set field Receipt number = 1458800
4. Click button Close

End of TCS statement process

TCS CERTIFICATE PROCESS

1. Navigate to General ledger > Reports >India

>TCS >TCS certificate

2. Set field Tax Account Number (TAN) =

AXDF87645F
3. Set field Withholding tax component group = Scrap
4. Set field Date (under field group From) = 04/01/2012
5. Set field Customer account (under field group From)
= INMF-000001
6. Set field Date (under field group To) = 06/30/2012
7. Set field Customer account (under field group To) =
INMF-000005
8. Set field Full name = Rajesh Gupta
9. Set field Father name = Rakesh Gupta
10. Set field Designation = Manager
11. Click OK

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 27

TCS INQUIRY
Accounting supervisor/Accountant

1. Navigate to General ledger > Inquiries > India

posted tax > Withholding tax > TCS

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 28

2. Set field Tax Account Number (TAN) =
AXDF87645F
3. Set field Settlement period = TCS
4. Set field Withholding tax component group = Scrap
5. Set field From date = 4/1/2012
6. Set field To date = 4/30/2012

7. Click Ok
8. Validate transactions
9. Close form

End of TCS inquiry

End of Demo script

CONCLUSION
This demonstration has guided you through the creation and posting of TCS transaction in AX.
 Creation of Sales order
 Creation of Advance payment
 Validation of financial entries with TCS
 Authority settlement process

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 29

  TCS statement/Certification process
 TCS inquiry

AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 30

DISCLAIMER
© 2011 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. Microsoft may make
changes to specifications and product descriptions at any time, without notice.
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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AX2012R2- Microsoft Dynamics AX 2012 R2 Tax Collected at Source Demo Script 31