INDIA LOCALISATION ON AX4.0SP2

India localisation on AX4.0SP2 has been released on 21st January,2008 on PartnerSource & CustomerSource.

AX4.0SP2 India localisation is a re-design of the existing India taxes based on the standard tax engine, fully redesigned and reengineered Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). The criterion for redesign and new localisation is that it offers the same functionality as the existing localisation and it expands localisation features by adding taxes like VAT and Service Tax. Custom duty feature is introduced to address import and export transactions.

The following are the highlights of redesigned of AX4.0SP2:
· India features are controlled by a separate configuration key.
· Tax features are parameterized. User will activate only those taxes which are applicable to their business.
· India localisation can be implemented in parallel with the standard AX taxes and countries available in the SYS layer
· User defined tax components and codes
· India taxes can be calculated on all forms in AP, AR and GL modules where standard AX taxes can be calculated
· Calculated tax amounts can be adjusted manually before posting a transaction
· Tax setoff process can be carried out between multiple taxes and multiple registration numbers.
· India Direct taxes – TDS/TCS integrated with the standard AX WHT setup
· Master records include an additional tab for the extensive tax information for the reporting of the different tax types per multiple tax registration. These master records are Company Information, Vendor and Customer including alternate addresses
· The redesigned India Tax engine will be based on the standard tax engine bit establishing additional tabs and fields to be able to accommodate the complex tax requirements. There are many tax types that need to be calculated. These are Sales Tax, VAT, Excise, Service Tax, custom duty and charges. Tax types are made up of components and various tax types and components can be calculated on one document. The tax engine consists of the following :-

o Formulae builder – is a flexible tool which allows a user to devise formulae with
tax component for the different tax types.
o Sales Tax setups, rates, calculations, surcharges and rebates
o VAT setups and calculations
o Excise setups of components, tax on tax calculation formulae
o Service Tax setups and calculations
o Custom duty setups and calculation formulae

· All GL, AP and AR transaction forms are localised to calculate India taxes by means of tabs for India, fields and reports.
· End to end functionality of VAT (Setup to Settlement).
· Posting of service tax on cash basis. Service tax posted to interim accounts on invoicing and transferred to actual accounts on receipt or payment of cash.
· Stock Transfer – localisation of transfer order for Indian taxes and documents
· Inter-company localisation for India Taxes
· Tax Deducted at Source (TDS) – WHT on purchase transactions
· Tax Collected at Source (TCS) – WHT on sales transactions
· Calculation of customs duty on orders and journals.
· Calculation of assessable value in the order forms, as per the legal requirements for customs