Automatically Calculate Sales Tax in Dynamics 365 Finance
Question
A company plans to use Dynamics 365 Finance to calculate sales tax on sales orders.
You need to automatically calculate sales tax when the sales order is created.
Which three actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
Answers
Explanations
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A. B. C. D. E.ABE.
https://docs.microsoft.com/en-us/dynamics365/finance/general-ledger/indirect-taxes-overviewTo automatically calculate sales tax on sales orders in Dynamics 365 Finance, you should perform the following three actions:
A. Assign values to the sales tax codes and assign the sales tax codes to the sales tax group associated with the customer.
This action involves creating and setting up sales tax codes that represent the different tax rates applicable to the customer's location. You should then assign these sales tax codes to the sales tax group associated with the customer, which identifies the tax rules for that customer. By doing so, Dynamics 365 Finance will automatically apply the correct tax code to sales orders for that customer.
B. Assign all sales tax codes to the item sales tax group associated with the item being sold.
This action involves creating and setting up item sales tax groups that specify the tax codes applicable to the item being sold. You should assign all the relevant sales tax codes to the item sales tax group, which will ensure that the correct tax code is applied to the item being sold in the sales order.
C. Set up a default item sales tax group on the item being sold and set up a default sales tax group on the customer used on the sales order.
This action involves setting up default item sales tax groups and default sales tax groups. The default item sales tax group is assigned to the item being sold, while the default sales tax group is assigned to the customer used on the sales order. By doing so, Dynamics 365 Finance will automatically apply the default tax codes to the sales order if a specific tax code has not been assigned to the item or customer.
In summary, to automatically calculate sales tax on sales orders in Dynamics 365 Finance, you need to set up sales tax codes, sales tax groups, and item sales tax groups, and then assign them to customers and items. Additionally, you should set up default item sales tax groups and default sales tax groups to ensure that tax codes are applied automatically when a specific code has not been assigned.
