About the Whole amount and Interval options for sales tax codes

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

You can set up a sales tax code to be calculated based on a whole amount or an interval amount. In the Sales tax codes form, use the Calculation method field on the Calculation FastTab to select how to calculate a sales tax code. (Click General ledger > Setup > Sales tax > Sales tax codes.)

  • Whole amount – The tax rate is applied to the whole taxable amount.

  • Interval – The taxable amount is divided into parts, each of which falls in a range that has a specific sales tax rate. The part of the amount that falls in a given interval is taxed according to the tax rate for that interval. The sales tax is the sum of the tax amounts that are calculated for each amount interval.

    Note

    The Interval option is available only when you select Line in the Calculation method field in the Sales tax area of the General ledger parameters form.

For taxes to be calculated on all taxable amounts, regardless of which calculation method is selected, intervals must follow these rules:

  • The first interval must have a lower limit of zero.

  • The last interval must have an upper limit of zero, which indicates infinity.

  • The upper limit of an interval must be the lower limit of the next interval.

If an amount is the upper limit of the previous interval and the lower limit of the next interval, the sales tax rate of the first interval will be applied to the amount.

If an amount falls outside the intervals that are defined by upper and lower limits, a sales tax rate of zero will be applied.

Note

To set up tax intervals for the sales tax code that you select in the Sales tax codes form, click Values in that form. For more information, see Values of sales tax codes (form).

Example: Whole amount method of calculation

In the Values form, sales tax rates are set up in the following intervals.

Taxable amount interval

Tax rate

0.00 to 50.00

30%

50.00 to 100.00

20%

100.00 to 0.00

10%

The sales tax is calculated on the whole taxable amount.

Taxable amount (price)

Calculation

Sales tax

35.00

35.00 * 0.30

10.50

50.00

50.00 * 0.30

15.00

85.00

85.00 * 0.20

17.00

305.00

305.00 * 0.10

30.50

Example: Interval method of calculation

In the Values form, sales tax rates are set up in the following intervals.

Taxable amount interval

Tax rate

0.00 to 50.00

30%

50.00 to 100.00

20%

100.00 to 0.00

10%

The sales tax is the sum of the tax amounts that are calculated for each amount interval.

Taxable amount (price)

Calculation

Sales tax

35.00

35.00 * 0.30

10.50

50.00

50.00 * 0.30

15.00

85.00

(50.00 * 0.30 = 15.00) + (35.00 * 0.20 = 7.00)

22.00

305.00

(50.00 * 0.30 = 15.00) + (50.00 * 0.20 = 10.00) + (205 * 0.10 = 20.50)

45.50

See also

About the Marginal base field