[Denis Marcoux]

Hi all,

We use AX 2012 R3 CU10.

We face a problem with issuing of non invoiced stocked items that are purchased using partially refunded taxes.
I know it’s pretty specific, but please read on in case an ideas pops up….

The root of the problem  is the fact that school boards purchase goods using taxe codes for which part of the tax is reimbursed by the government.  AX adds the NON refundable part of the tax to the expense or asset account of the transaction at the time of invoicing.

Attached to this post is the screenshot of the tax code.
Also attached is a screenshot of the item model group.

Here is the issue we face.  It is related to the purchase of stocked items with these tax codes.  Specifically the issuing of received but not invoiced stocked items purchased using these tax codes.

 

• School board purchases almost always go through a PO
• When merchandise is received,
  • The physical cost amount (Inventory sub-ledger) is increased, but not considering the non refundable part of the tax.
  •  If I receive a qty of 10 at $10
    • The physical cost amount of the stocked item is  $100
    • Cost price is $10 (we use average price)
• When merchandise is invoiced,
  • The physical cost amount is reversed
  • The financial cost amount is increased of the invoiced amount including the non refundable taxes
    • physical cost amount = $0
    • financial cost amount = $105
      • That is good if we want to balance GL with inventory
    • Cost price : $10.50

 

All is good if you don’t issue any stock that has’nt been invoiced.  But it goes sour when you do.

 

When stock is issued before it is invoiced, using the numbers above, it’s issued at $10.

• This means that cost price varies even if you always pruchase at the same price.
• Worse, your asset account balance will be wrong
  • The issue of qty 10 at $10 (before invoice) will credit inventory of $100
  • The invoice will then add the $5 of non refundable tax to the asset account and to the Financial cost amount in the inventory
    • The asset account will be debited by $105
    • We end up with a balance of $5 debit, when this transaction should have a null effect on the GL
      • 10 purchased , 10 issued

 

Do you have any idea on how to avoid this situation?

Is there a way for the non refundable part of the tax to be included in the physical cost amount?

Will inventory close process have any impact on this?

Other suggestions or ideas.

 

Thank you.

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Denis Marcoux
Developer
Grics
Montreal QC
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[Denis Marcoux]

Sorry for the typo in the title :  Issuing of non invoiced stocked items.

Thanks.

——————————
Denis Marcoux
Developer
Grics
Montreal QC
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