[Important Issue & Workaround] Correction for Report Sales Tax For settlement Period

Dear Dynamics 365 Finance and Operations Lovers,

Being a Finance Consultant we need to be aware of this issue to be ahead of the curve and avoid BUG from Implementation/ production support.

Very recently we have concluded in 10.0.12, Report Sales Tax For settlement Period contains incorrect details and amount.

This product issue is there when your customer is reporting sales tax to authority including Sales Tax Correction in every month, means their sales tax setup is driven by the below option 

General Ledger-> Ledger Setup-> General Ledger Parameters-> Sales tax tab-> Tax-> Include Correction= Yes

So, what is the issue?

When we run the report, the report is taking all the sales tax transactions from past months/years, even though those were settled/reported once.

This is a very crucial issue for business and can lead to incorrect judgement and decision if not fixed.

FIX?

Product team already acknowledged this as a BUG and will be fixed in 10.0.15 version, for further details, check LCS Issue 488842

Workaround?

As this is very  crucial, we have concluded the below workaround and it can be some slight change in reporting, however not much.

We have decided to make General Ledger-> Ledger Setup-> General Ledger Parameters-> Sales tax tab-> Tax-> Include Correction= NO

It will certainly change the reporting concept, see below.

When the settlement is done, customer need to select from the filter "Correction" and if some correction is done on the same period, they have to report that into the same period by selecting "Latest Corrections"

When this is done, in sales tax payment, it is visible by "Correction" and "Latest Corrections"

It goes for the "Report Sales Tax For settlement Period" with the similar filter but some more specification 

Original- First time settlement report

Correction- Any new transactions posted after original settlement 

Latest Correction- Only the latest Correction (this is possible business does report multiple correction, hence this will only show latest correction settled)

Total- All settled including original settlement + all corrections settlement for the period.

I hope this blog will help you take decision quickly before something goes wrong and it can save lot of issues if considered as soon as possible.