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Description of problem: In order to ensure that tax is posting to the correct account (immaterial as to whether or not a debit or credit), the Tax direction requirement has been set to Yes in the General ledger parameters. I then allocate Payable as the Tax direction on a specific account. I raise a general journal for that account and it works as expected. However, if I raise an inter-company general journal where I debit the one account in company X and credit the same account in company Y, no TAX is calculated at ALL for the journal that is recorded in the destination company. This is however not correct. Especially from an inter-company perspective as each legal entity needs to wear the GST values. Repro steps: 1. Ensure that tax Direction Requirement is set to Yes in ledger parameters 2. Select a number of accounts (or only one) and specify the tax direction for two legal entities 3. Ensure that there is an intercompany relationship (same currency) between two entities. 4. Create a general journal, using the account setup in point 2. Debit the account in legal entity one. On the second line, credit the same account but in legal entity 2. Ensure that both GST and Item GST groups are populated on each line. Check the GST tab. No GST s calcualted. 5. Post the journal. Check the voucher. Note that NO GST is posted in the destination legal entity. This suggestion is to request for the tax to be recorded in both legal entities

Category: Tax
STATUS DETAILS
Inactive
Ideas Administrator

Thank you for your feedback.

We are not considering the suggestion at this time due to the following reason:

Sales tax could only be recorded in one legal entity under current design

Sincerely,

PM, Eric Wang

Microsoft.