Dynamics Community Forum Thread Details

Srilanka Tax Configuration

Dear Community,

We are currently implmenting Taxation for Srilankan Entity. I could not found any source or microsoft document for Tax Configuration for Srilankan entity.

As srilanka has two tax one standard 18% and another SSCL duty 1.25% on Items and 2.5% on Services.

Challenge is, for Sales it is achievable using Posting ledger groups and posting goes to Payable accounts. But for Purchase posting for SSCL should go to Inventory account (Not to Receivable account) and posting of 18% should go to Tax Receivable account. (Find screenshot below)

On the top of it, we have different inventory accounts segregated based on Item Groups. Accordingly SSCL tax should be posted separately based on Inventory groups.

How should I achieve this??

If any document or blog, please shared that would be really helpful.

Sales Order
Particulars	Amount (LKR)	Account name	Account type	Ledger account number
	10000
	1.25
SSCL	125	SSCL Payable	Liability/Balance sheet	XXXXXX
	10125
VAT	1822.5	Sales Tax Payable	Liability/Balance sheet	219210
	11947.5

Purchase order
Particulars	Amount (LKR)	Account name	Account type	Ledger account number
Net Amount	3360000	Inventory	Inventory - Parts	131120
SSCL @2.5%	84000	Inventory	Inventory - Parts	131120
VAT Base	3444000
VAT @18%	619920	Sales Tax Receivable	Asset	151010
Total Inv Value	4063920