Hello there D.M.-azing D365 Community! And welcome to year 2021!
It is with pleasure to share this article about few key points on processing Settle and post sales tax in collaboration with one of our colleagues in D365 Community, Ramit Paul.
Kindly check out Ramit Paul’s blog on MsDynamics365 Empowered Community – Dynamics 365 Finance Community.
Before we further proceed, let us first know what Settle and post sales tax is.
Settle and post sales tax is a function in D365 FO which settles sales tax balances on the sales tax accounts, and offsets them to the sales tax settlement account for a given period. This helps us ease the process of computing the amount that has to be reported and remitted to sales tax authorities.
Now that we have an idea of what Settle and post sales tax is, allow me to share the few things to note in order to successfully execute and utilize the function Settle and post sales tax on D365 Finance and Operations.
- Basic setups: Sales tax codes, Sales tax groups, Item sales tax groups, Sales tax authorities (with linked Vendor account), Sales tax settlement periods, and number sequence for Sales tax payment.
- Ledger posting groups (with assigned main account on settlement account field) and of course the main accounts for sales taxes.
- Remember that we maintain setup on Main accounts + Financial dimension combination on Configure account structures and there will be time that we allow only specific financial dimensions for main account on Sales tax and to avoid encountering error during posting of Vat settlement we need to assign default dimensions on main account.
To do this, go to General ledger > Chart of accounts > Accounts > Main accounts > Select main account for sales tax payment > Edit > Under Legal entity overrides tab, click Add button then select the applicable legal entity > Click Add > Click Default dimensions > On the pop out form specify the applicable financial dimension value
Fixed value: the assigned financial dimension value cannot be changed by the user during posting of sales tax settlement (recommended)
Not fixed: the assigned financial dimension value can be changed by the user
- The assignment of default dimension on sales tax payment main account is not necessary if the configured account structure for the said main account is set to Allow blanks.
You may refer on Ramit Paul’s blog regarding Settle and post sales tax on [How to] VAT Settlement Correction Posting Concept Dynamics FO – Dynamics 365 Finance Community to proceed in the execution of this function.
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