Sales tax payable account automatic entry in dynamics AX

In this post, I am going to describe the functionality of sales tax tax payable account in dynamics ax

I am using COM demo data set here.
First you will have to set the posting type as "Sales tax" on Main account form to cater the Sales tax account entries.
Go to General ledger > Common > Main accounts
I am setting posting type "Sales tax" on Main account "24210"
Select "24210" and click Edit button on action pane or double click

Click Edit
Set Posting type = Sales tax [Make sure the account type should be set as "Liability" as this is payable account]

Go to General ledger > Setup > Sales tax > Ledger posting groups
Set Sales tax payable = 24210 

Go to Accounts receivable > Common > Free text invoices > All free text invoices
Click New > Free text invoice button on action pane
Set Customer = RCUS000001
Set Billing classification = General [This field is only available if Public sector license key is enabled. You don't need to set the value of Billing classification if you don't have Public sector license key enabled]
Click Add line button
Set Main account = 45999 [Use revenue account here as this is Accounts receivable invoice]
Set Item sales tax group = SalesTxItm
Set Sales tax group = US
Set Unit price = 100

I will discuss Sales tax payment setup in my next post. In my next post, i will discuss in detail about sales tax codes, sales tax groups, item sales tax group and sales tax settlement periods because without setting up these things you will not be able to perform sales tax payments and your accounts will not reflect sales tax entries on Subledger journal and General ledger.
Click on Subledger button on action pane

You can see on the above screenshot that automatic entry of Sales tax payable "24210" account with credit entry of "5" is shown on Subledger journal form of Free text invoice. As "24210" is Liability account, that's why it is showing credit entry which is a correct behavior.
"24210" is adding 5 to the total invoice amount because 5 percentage is the amount that is set on the Sales tax code and that Sales tax code is associated with the Sales tax group and Item sales tax group that we are using on Free text invoice line here.
5% of 100 is 5 that's why it is showing credit entry of 5 on Sales tax payable account
You will have to associate the Sales tax code with both Sales tax group and Item sales tax group otherwise entries will not be reflected on Sales tax form, Subledger form and General ledger.
You can also verify the sales tax amount by clicking on Sales tax button on action pane at the top.

In this way, you can get the automatic entries of Sales tax payable account.
Hope, you will learn from this blog.
For any issues or concerns, you can contact me on my email addresses given below:
uzi_sag@hotmail.com, uzairshah50@yahoo.com