Applies to Product -Dynamics 365 Project Operations
What’s happening?
Customers are experiencing an issue when creating intercompany expense reports: The sales tax is consistently posted in the loaning legal entity instead of the borrowing legal entity, even when the Legal entity for intercompany tax posting setting is changed to "DESTINATION." in General ledger> Ledger setup> General ledger parameters> Sales tax tab.
Reason:
The underlying cause of this is identified as a bug in the system related to the handling of intercompany expense reports and sales tax postings.
Resolution:
The sales tax issue has been reported to the product group and fixed in a quality update of D365 Finance version 10.0.41. Here you can find more details: Details for issue 954572