ERP User GuideMicrosoft Dynamics GP

Microsoft Dynamics GP

Tax Setup



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.

In the Sana webshop customers can see product prices including tax or excluding, depending on the setup.

If taxes are configured, they will be calculated and shown in the shopping cart of the Sana webshop.

Taxes are configured and calculated in Microsoft Dynamics GP.

Setup Taxes in Microsoft Dynamics GP

Microsoft Dynamics GP uses tax schedules and tax details to calculate taxes.

Tax details - identify specific taxes, their rate of taxation and the taxing authority to whom taxes must be paid.

To set up tax details, click: Administration > Setup > Company > Tax Details.

Tax schedules - provide a method of grouping the tax details that apply to companies, items, customers, or vendors.

To set up tax schedules, click: Administration > Setup > Company > Tax Schedules. Before setting up a tax schedule, all tax details you will use in the tax schedule should be already configured.

For more information about how to set up taxes, refer to the official Microsoft Dynamics GP Guide: System Setup.

In Microsoft Dynamics GP you can set up whether an item is taxable and a customer is liable to taxes or exempt from tax. This can be set up by assigning the appropriate tax schedule and tax details to an item and a customer. To calculate taxes, Microsoft Dynamics GP compares the tax schedules that are assigned to each item with the tax schedule assigned to the customer, and calculates taxes only for the details that appear for both.

Setup Tax Schedule ID for a Customer

Step 1: Open the Customer Maintenance window and select the necessary customer.

Step 2: Click on Address ID to open the Customer Address Maintenance window.

Step 3: Add Shipping Method and Tax Schedule ID to each customer's address. When the customer changes the shipping address while placing the order in the Sana webshop, taxes are automatically recalculated, based on the tax schedule ID assigned to the selected address.

It is also possible to assign the shipping methods from Microsoft Dynamics GP to the shipping methods in Sana Admin. In this case, the shipping method from Microsoft Dynamics GP which is assigned to the one in Sana will override the shipping method from a customer in the sales transaction.

Tax Schedule ID and Shipping Method, either from a customer or the one assigned to the Sana shipping method, are required to calculate taxes for the sales order.

Setup Tax Schedule ID for an Item

Step 1: Open the Item Maintenance window and select the necessary item.

Step 2: Select the necessary option in the Sales Tax Option field. Three options are available:

  • Taxable - if you select this option, you should also select the Tax Schedule ID to calculate taxes for the item. The tax schedule with tax details assigned to the item will be compared to the tax schedule ID and tax details assigned to the customer. When a customer places an order in the Sana webshop, taxes are calculated for the customer when there is a match between tax details assigned to the item and tax details assigned to the customer. If there is a match between multiple tax details assigned to the item and customer, all concurrent taxes will be applied. If there is no match, taxes will not be applied to the sales order.
  • Nontaxable - no taxes will be calculated, even if the customer is liable to taxes.
  • Base on customers - the tax details from the tax schedule assigned to the customer will be used to calculate taxes.

From Sana Admin you can control presentation of taxes in the shopping cart of the Sana webshop. You can set up whether to show or hide taxes in the shopping cart, and whether to show the total tax amount or all taxes applied to the sales order. For more information about how to change presentation of taxes in the shopping cart, see "Taxes".

ERP User GuideMicrosoft Dynamics GP