ERP User GuideMicrosoft Dynamics 365 for Finance and Operations, Business Edition

Microsoft Dynamics 365 for Finance and Operations, Business Edition

Tax Posting Groups

Every company collects and pays taxes to various tax authorities. The rules and rates vary for countries, states, counties, and cities, and must be updated periodically as tax authorities change their requirements.

 NOTE

Information in this article is applicable to those who are using VAT in Dynamics 365 for Financials and setting up tax posting groups on G/L accounts.

To use VAT in Dynamics 365 for Financials, it should be enabled first. Choose the Search for Page or Report icon and enter General Ledger Setup. In the General Ledger Setup window, on the General FastTab, enable the option VAT in Use.

Set up sales taxes

Tax must be associated with both, Tax business posting group of a customer and Tax product posting group of an item. Tax is calculated only for the tax posting group codes that are included in both, Tax business posting group and Tax product posting group.

Step 1: Configure Tax Business Posting Groups and Tax Product Posting Groups. Choose the Search for Page or Report icon and enter Tax Posting Setup.

In the Tax Posting Setup window configure the combinations of Tax Business Posting Groups and Tax Product Posting Groups. For each combination, you should fill in a Tax %. You can set up as many combinations as needed.

Step 2: Open the customer card of the required customer and on the Invoicing FastTab select the appropriate Tax Business Posting Group.

From the customer card you can also control whether a customer should see prices including tax or excluding in the Sana webshop. If you select the Prices Including Tax checkbox on the Invoicing FastTab, a customer will see all product prices in the webshop including tax.

Step 3: Open the item card of the required item and on the Price & Posting FastTab select the appropriate Tax Product Posting Group.

Tax is calculated when there is a match between the tax posting group codes from the Tax Business Posting Group assigned to the customer and the tax posting group codes from the Tax Product Posting Group assigned to the item. If there is no match, tax will not be applied to the sales order.

In Dynamics 365 for Financials tax is applied to each sales order line. Therefore, some extra taxes can be calculated. For example, if a service charge is applied to the sales order it is posted on a G/L account. G/L accounts in Dynamics 365 for Financials can also store a combination of Tax Business Posting Group and Tax Product Posting Group.

If there is a relevant combination set for the G/L account, tax will be applied to the corresponding sales order line.

Tax from Dynamics 365 for Financials is triggered in the shopping cart of the Sana webshop.

From Sana Admin you can control presentation of taxes in the shopping cart of the Sana web store. For more information about how to change presentation of sales taxes in the shopping cart, see 'Taxes'.

ERP User GuideMicrosoft Dynamics 365 for Finance and Operations, Business Edition