(India) Improvements in unit price and cost price handling in Stock transfer orders: Microsoft Dynamics 365 Finance and Operations

A small but very important improvement for Indian localization by Microsoft which will help in overcoming many traditional issues in Stock transfer order process.

Pre-Requisites: You should have following version.

This feature will address following issues:

  1. Default values of Transfer type and Price type can be configured in Inventory and warehouse management parameters.

Navigate to, Inventory Management > Parameters > Transfer Order.

  1. Unit price in a stock transfer order line is correctly recalculated based on the inventory dimensions specified in the line until the first shipment is posted for the line.

This was the major issue in transfer order costing, now this has been resolved now the cost will be populated based on Inventory dimension combination. See following as example:

  1. Shipment of a stock transfer order line having zero Unit price can be prevented.
  1. Correct inventory costs are posted for stock transfer orders in case of partial shipments or receipts, batch-controlled items, etc.
  1. Unrealized profit or loss is not posted upon shipment or receipt of a stock transfer line if the unit price differs from the inventory cost price of the item.

This was a really big issue while stock transfer and was creating huge Inventory reconciliation issue, difference was going into P&L.

  1. The feature also restricts changing Unit of measure in stock transfer order lines.

That’s it for this, hope this will solve lot of issues for stock transfer.

Thank You!!! Keep reading and sharing!!!

Thank You Nikesh Kurhade for helping in writing this blog !!!

2 comments

  1. Dear Sir,

    Any updated on TCS for Indian Localization.

    As of now D365 is not divert service invoice and sale goods invoice. As per government rule TCS Applicable on Sale on Goods.How to handle TCS in both Cases.

    *Thanks & Regards.* Babu Lal Sharma +91-8373915351

    On Wed, Feb 3, 2021 at 4:27 PM Explore Microsoft Dynamics 365 Finance and Operations Together wrote:

    > Saurabh Bharti posted: ” A small but very important improvement for Indian > localization by Microsoft which will help in overcoming many traditional > issues in Stock transfer order process. Pre-Requisites: You should have > following version. This feature will address foll” >

    Liked by 1 person

    • Dear All,

       

      We are sending this email to inform you that we have released new updates required by CBDT vide circular 17 in the regulatory feature “TCS on sale of goods “ originally released for India In September 2020.

       

      Feature:

      “ TCS on sale of goods “ ( Feature update based on CBDT circular No. 17 dated 30-09-2020)

       

      Description :

      Initially for the new TCS provision following interpretations were provided by the experts :   

      (a) Tax to be collected when both the amount of sale and the amount received as sale consideration exceeds Rs. 50 lakhs during the previous  year;

      (b) Tax to be collected when the amount of sale exceeds Rs. 50 lakhs irrespective of the amount of sale consideration received during the previous year;

      (c) Tax to be collected when the amount received as sale consideration exceeds Rs. 50 lakhs irrespective of the amount of sale made during the previous year. 

      The initial solution was delivered based on option (a)  in Dynamics 365 F&O which was released in September 2020. There was a lot of confusion about the correct implementation of this feature, to remove doubts arising on the applicability of new TCS provisions, the CBDT issued Circular No. 17, dated 30-09-2020 clarified that option ( c ) is more convenient,  realistic, and reasonable to get the expected result.

      To make the solution compliant with the circular following changes have been incorporated into the existing TCS on sale of goods feature :  

      ·        Introduced “Initial achieved threshold value” concept: As per CBDT clarification, “it may be noted that this TCS shall be applicable only on the amount received on or after 1st October 2020. However, the threshold is based on the yearly receipt, it may be noted that only for calculation of this threshold of Rs. 50 lakhs, the receipt from the beginning of the financial year i.e., from 1st April 2020 shall be taken into account.  For example, a seller who has received Rs. 1 crore before 1st October 2020 from a particular buyer and receives Rs. 5 lakhs after 1st October 2020 would be required to collect tax on Rs. 5 lakhs only and not on Rs. 55 lakhs [i.e. Rs.1.05 crore – Rs. 50 lakhs (threshold)] but for threshold calculation amount received before 1st October will also be considered.  To meet this change, we introduced an initial threshold value concept. 

      ·        TCS on the collection of payment from the customer against sales consideration:

      As per CBDT clarification “It may be noted that this TCS applies only in cases where the receipt of sale consideration exceeds Rs. 50 lakh in a financial year. For example, a seller who has made sales of Rs. 1 crore before 1st October 2020 from a particular buyer and receives only Rs. 10 lakh after 1st October 2020 would not be required to collect tax on 10 lakh as the payment amount has not crossed the threshold value of Rs. 50.

      Based on the above we provide an option through Feature management to enable TCS deduction on the collection of payment from a customer against sales consideration.

      ·        Direct voucher posting of TCS amount on Payment and Invoice transaction:

      In the initial solution provided for TCS deduction, the posting was made through related vouchers. Redesign based CBDT press note enables the user to post TCS amount directly in the ledger without posting through a related voucher.

                  Feature description :

      As per newly introduced section 206C (1H) TCS should be collected at the time of receipt of payment from a customer because this interim accounting option of posting is introduced for this feature. Where TCS amount will be posted to the interim account and added to invoice value at the time of issuance of the invoice, the liability of TCS will be recorded in the books at the time of receipt of payment. Another important aspect of this feature is that if multiple customers have the same PAN number then the accumulated transaction value will be taken to compare with the threshold limit to determine the eligible amount of transaction for TCS deduction.

       

       

      Dynamics 365 Finance

       

      Please find information about the update for Dynamics 365 Finance in the content article:

      https://support.microsoft.com/en-us/help/4599653

                    LCS issue search :

      https://fix.lcs.dynamics.com/issue/results/?q=4599032

       

      TCS on sale of goods feature is now supported in the following versions of Finance:

       

      Dynamics 365 Finance version

      Fix Build

      10.0.15

      10.0.644.20001

      10.0.14

      10.0.605.30002

       

       

      Dynamics AX 2012 R3

       

      Please find information about the update for AX2012 R3 in the content article: https://support.microsoft.com/en-us/help/4599639

       

      URL to download the package: Details for issue 3983659 (dynamics.com)

       

      LCS issue search: https://fix.lcs.dynamics.com/issue/results/?q=4598394

       

      Prerequisite :

                 AX2012R3 :

      User need to install KB 4089749 and KB 4528707  before installing the TCS feature 

       

      The process to compute TCS on sale of goods :

      Enable feature through feature management

      Initialized “Initial threshold achieved value

      Create new withholding tax code “Sale of goods

      Mark check the box “PAN-based accumulation if required”

      Define Interim account

      Create a new withholding tax group “Sale of goods.”

      Mark tax liability on payment

      Define Threshold definitions

      TCS Threshold setup for “Sale of goods”

      Activate calculation of TCS for customer

      Posting of Invoice

      TCS liability will arise on receipt of payment against sales consideration.

       

      Please find all the details about the TCS on Sale of goods in the content article below:

       

      https://support.microsoft.com/en-us/help/4599653

      https://support.microsoft.com/en-us/help/4599639

      Liked by 1 person

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