Localization for

Pakistan
Microsoft Dynamics AX is a fully integrated
Enterprise Resource Planning (ERP) solution
that addresses various business processes
of organizations, from Manufacturing, Logis-
tics, Finance to Human Capital Management.
While Microsoft Dynamics AX
"out-of-the-box" is localized to address Key Functions
specific laws and/or regulations for particular
Specific tax calculations for Pakistan.
countries, it is does not support localization Accounting for financial reporting requirements
in all countries, including Pakistan. In order to for Pakistan.
fully benefit from a Microsoft Dynamics AX Assessable value calculation for Pakistan.
Import sales tax, Cost estimations and Actual
implementation, companies in Pakistan need costing for Pakistan.
an implementation partner that not only Funded and non-funded bank facilities and limits.
possesses the technology expertise but
also understands country-specific laws and
regulations.

We leverage our world-class Microsoft Dynamics AX consulting team, deep and expansive
understanding of Pakistans laws and regulations, four decades of experience, and a number of
successful technology implementations to deliver highly integrated and robust solutions to our
clients. The solution we provide even includes automated and customized tax calculations for
Pakistan.

Solutions Features

Withholding Tax

On a national level, the biggest source for tax collections by the Federal Revenue in Pakistan is
Withholding Tax. Over the years, the collection as well as dependence on Withholding Taxes is on
the rise. Important withholding provisions relate to Salary, Imports, Exports, Commission and
Brokerage, Dividends, Contracts, Profits on debt, Utilities, Vehicles Tax, Stock Exchange-related
provisions and Non-residents, to name a few.

Systems Limited offers Microsoft Dynamics AX localization for the following Withholding Taxes;

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Withholding Tax Selection On Invoice Level

The solution allows selection of Withholding Tax

on invoice level. Using this feature, users can
calculate Withholding Tax while making pay-
ments as per their selections on invoices. This
feature covers the requirement of Tax Withhold-
ing of services and supplies, on a single pay-
ment made to a supplier or payment received
from a customer.

Withholding Tax Selection On Item Level

The solution allows selection of Withholding Tax

on Item master level which provides a base for
calculation of Withholding Taxes item-wise. Item
Withholding Tax group helps users categorize
withholding taxes. For example, Withholding Tax
calculations for supplies and services.

Income And Sales Tax Withholding

The solution keeps a complete record of Income

and Sales Tax Withholding which includes pay-
ables and receivables both at the time of pay-
ment made to suppliers and also upon receipt of
payment from the customers.

Withholding Tax Settlement

The solution enables users to process Withhold-

ing Tax on weekly and monthly basis. It allows
selection of individual Withholding Tax transac-
tions for specific payments.

A tax inquiry is available for Withholding Tax

settlements where date and Withholding Tax
type filter is available for weekly or monthly tax
settlements.

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Selected data can be exported to excel on
weekly or monthly basis. This inquiry includes all
the columns required by the local tax authorities.

Computerized Payment Recording (CPR)

Number Recording

The solution provides CPR number recording

process on Withholding Tax settled transactions.
Following screen shows the complete process of
CPR calculation and recording.

Receivable Challan Recording

The solution automatically records all the Chal-

lans received by customers. It also provides the
status report for each Challan.

Payment Sections, Code and Nature

References

Withholding Tax is applicable on the purchase of

all types of goods including Electronics, Auto-
mobiles, etc. Country-specific tax authorities
require certain payment sections, Codes of
Charges and Nature references when the procur-
er submits such a type of Withholding Tax.

Systems Limiteds localizes the entire process of

Payment sections, Code and Nature references
in Microsoft Dynamics AX as per the require-
ments of local governing bodies.

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Weekly and Monthly Tax Submission Report

The solution comes with pre-defined weekly and

monthly tax reports, which includes all the
details required by tax authorities. These reports
are available in Microsoft Excel format.

Withholding Tax On Customer Advances

This feature enables users to record Withholding

Tax on receipt of customer advances. Advance
Withholding Taxes record is linked with the
standard Withholding Tax report.

Sales Tax Localization

Sales Tax Annexures

Sales tax annexures are available in the form

inquiry where users can select the relevant
authority to filter sales tax data. For example,
you can choose between the Federal Board of
Revenue, Sindh Board of Revenue, and Punjab
Board of Revenue.

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 Credit Facilities

Banks finance the corporate sector for its business activities in the form of either Funded or
Non-funded facilities. Microsoft Dynamics AX out-of-the-box does not support country-specific
calculations for such credit facilities. Systems Limited, leveraging its years of experience in the
financial industry, localizes Microsoft Dynamics AX such that it allows users to record and calcu-
late funded and non-funded facilities separately. The solution also enables the users to record
limits for banks as main and sub limits.

Funded Facilities Financial Impact

The Loan tab has been introduced to record

funded facilities. Upon recording loan transac-
tions users can select the facility type which will
record consumption of funded facility.

Main Limits And Sub Limits

To cover the local requirement of main limits and sub limits of facilities provided by the bank,
Systems Limited introduces parent facility and limit type in Microsoft Dynamics AX. Limit type
can be a sub limit or main limit whereas if limit type is selected as sub limit then the parent
facility should be filled.

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 Customs Regulations

Microsoft Dynamics AX localization by Systems Limited addresses the unique requirements of

Pakistan Customs. All the reports, forms and processes are mapped to bring efficiency in Cus-
toms operations.

The following key features are a part of the localization;

Assessable Value Calculation

Assessable value is the value of the percentage of

duty payable to the central excise tax authorities.
In general, the assessable value is the price on
the bill or the invoice. The solution provides
pre-designed Assessable value calculation forms
which are designed as per the standards of Paki-
stan Customs. The solution enables users to
calculate duties and taxes on the basis of both
Assessable Value and Import Trade Price (ITP).

Sales Tax on Import

The solution records and calculates Sales on Import on the basis of assessable value and custom
duty. It also provides calculation of Third party (Government and/or Tax Authority) liability.

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Shipment Tracking

Shipment tracking customization has been

done to maintain complete details of ship-
ments which contain details such as vendor/-
supplier information, shipment loading infor-
mation, shipment discharge/dispatch informa-
tion, delivery information and additional infor-
mation.

Shipment information also includes the details

of the container in which the package details
can also be maintained along with shipment
information. It provides functionality to attach
custom-related documents or any other infor-
mative document with the shipment.

Pre-delivery inspection is the process carried out by any workshop team and in this process the
engineers check the equipment, vehicle or other tools within a shipment and verify all the parts
that are available. In case of any non-availability of parts, excess, or inaccuracy it will record the
details on the shipment with reference to the purchase order. This whole functionality is developed
and available in the Shipment details as well.

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Vendor Liability

The solution enables the recording of Vendor liability on risk and reward transfer.

Landed Cost Estimate

A Landed cost estimate includes any applicable duties, fees, taxes, and transportation costs that
may apply based on the origin, destination, and products of a shipment. Systems Limited localiz-
es the calculation of Estimated landed cost on the basis of estimated charges percentages.

Actual Landed Costing

The solution automatically calculates and records actual charges against the Landed cost estima-
tion. It also provides the comparison between actual and estimated costing.

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 About Systems Limited
Systems Limited, founded in 1977, is the leading Technology
and Business Process Outsourcing service provider,
delivering innovative business solutions and technology-led
BPO services. With over 2,500 employees globally, our
people help customers maximize their IT investments around
the world and create specialized solutions that drive
business results. These solutions leverage our deep
technical skills, accelerators, frameworks and products,
industry best practices, and domain expertise to ensure they
achieve the business goals and give a creative competitive
advantage to our customers.

Systems Limited brings industry insights and business

acumen focused on helping its customers achieve a high
ROI, oers the enterprise mission-critical software solutions,
and brings a deep technology-agnostic skill-set which
remains unmatched in the industry. By delivering on
hundreds of projects, we have developed industry-specic
and cross-industry oerings, plus a suite of tools and
accelerators that enable our customers realize business
benets faster with increased eciency while lowering
overall IT costs.

The winning combination of our people, best-in-class

technology, innovative business practices and value-added
global alliances help us team-up with the corporate and
public sectors to deliver value by producing a signicant
return on our clients investments.

FOR MORE INFORMATION Lahore Karachi Dubai

[email protected] Chamber of Commerce Building, E-5, Central Commercial Area, Office 105, Building 11 Dubai
www.systemsltd.com 11, Shara-e-Aiwane Tijarat, Shaheed-e-Millat Road, Internet City, PO Box 500497,
Lahore, Pakistan. Karachi, Pakistan Dubai, UAE
(+92 42) 36304825-35 (+92 21) 34549385-87 (+ 9714) 369 3525
(+92 42) 36368857 (+92 21) 34549389 (+ 9714) 456 3761