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Supply chain | Supply Chain Management, Commerce
Suggested Answer

How to Handle CESS, PAL, Custom Duty Charges in Sri Lanka entity?

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Dear Community, 
We are under process of implementation Sri Lanka entity. As we know MS does not provide any localization for Sri Lanka. 
Well, for Import Purchase Orders in Sri Lanka , we want specific Calculation to be handled for multiple charges. 
.
===========================
Scenario
Ex. Item Cost is 1000, 
Freight is 200
My CIF becomes 1200
.
Next level charges 
CESS 10% on my CIF value ie. 120. 
.
Taxable Value (Assessible value) : 1320 
on Which my VAT 18% : ie. 237.6
============================
How to handle this in Sri Lanka?? 
.
We are thinking of doing customization for same, as no Std OOB solution available. 
Please suggest.
 
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  • Suggested answer
    Laurens vd Tang Profile Picture
    4,969 Super User 2026 Season 1 on at
    Good day thefindingnimo, 
     
    Is the CESS in your case a header or line charge? 
     
    If it is a header charge, than you might try to use 'Compound' feature. Link to the documentation: https://learn.microsoft.com/en-us/dynamics365/supply-chain/sales-marketing/auto-charge-sequence-compound 
     
     
    Best regards,
    Laurens van der Tang
     
     
  • André Arnaud de Calavon Profile Picture
    306,351 Super User 2026 Season 1 on at
    Hi thefindingnemo,

    There was a similar question about a month ago on this forum. You may get some ideas from the replies here: How the 'Sales Tax on Sales Tax' tax calculation option works for Sri-Lanka Entity.
    You can most likely ignore the reply from Saif as this person used AI without validating the outcome. 

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