Sales Tax setup made easy

We hope you already signed up for the preview and are getting to know the capabilities of Dynamics 365 for Financials. For example, did you know that you can set up sales taxes quickly with Financials?

It really is easy: sign in to Financials, and then follow these few steps - in a matter of minutes, you're all set up!

1. From Home, open the list of assisted setup guides, and then choose Set Up Sales Tax.

2. Choose Next to create the default tax group, TAXABLE, that you must assign to items that are taxable.

3. Specify the accounts that you use for sales tax on purchases and sales.

For the purposes of the CRONUS US company, let's just pick account no. 20600 for both. This account is our Sales Tax Payable account, but you can choose another account by choosing the ellipsis button (...) to show the list of accounts.

4. Next, specify the tax information for your area: City, county, and state.

You must specify your city, county, and state, and the tax rates for each jurisdiction.

When you click Next, you'll be asked to save this setup as a new tax area. This becomes the standard tax area for your company that you can reuse for some or all of your customers and vendors in the next step.

5. Choose where to apply this new tax area, and then let Financials apply make the relevant changes, based on your filters. That's it!

We recommend that you choose to apply the new tax area to your own company information. If you also choose to apply it to customers or vendors, you'll be asked if you want to set a filter for which customers or vendors you want to apply the information to. For example, you can choose to apply the tax area to those customers that are in your own city or county, or to all customers.

Who you assign the tax area codes to will determine the taxes that are calculated on your sales and purchasing transactions.