Dynamics 365 Finance and Operations - How The AX Sales Tax Total Calculation Method Works

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If you’ve been wondering on how sometimes the GST (sales tax) amount in total doesn’t exactly turn out to be 10 percent (in this case GST in Australia). Or in the other words, the GST total amount has discrepancy than the given percentage.

In summary, AX GST Total calculation works as following
  1. Ax will look at the total net amount of your tax invoice then multiply by 10%.
  2. The GST Total will then be distributed to each line based on the weighted average of net amount
  3. AX natively records the currency amount in 4 decimal places. And in your case the currency amount will be rounded in 2 decimal places.
  4. Your GST Total is supposed to be 9.91 (if you calculate it per line), however after doing the step 2 (distributing to each line based on the weighted average of net amount) and did the round of the GST Amount per each line. It will end up by having 9.89

My colleagues has created very good excel simulation in his blog, you can see it in here https://dynamicsnavax.blogspot.com/2016/07/tax-calculation-on-net-amount-gotcha.html


Excel Files to download.



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