Skip to main content

Notifications

Small and medium business | Business Central, N...
Suggested answer

Tax Configuration for Purchase Invoices

(0) ShareShare
ReportReport
Posted on by 3,482

Hi:

Can the Tax Area Code be used within either Purchase Invoices or Sales Invoices?

Is the tax based on each state in which each vendor resides or on the state in which the end user's business resides?

When you create a purchase tax liability account in the chart of accounts for the Tax Area Code, is it a state-based liability account as opposed to a federal or local?

If the end user has vendors in many states, does this mean that a Tax Area Code will need to be created for each state?

Thanks!

John

  • Suggested answer
    KaranMehta Profile Picture
    KaranMehta 5 on at
    RE: Tax Configuration for Purchase Invoices

    Hello There,

    I'm new to this but i'd like to give a pointer - I hope that helps,

    Generally Tax Area should be created State wise - Which will give you a better clarity in reporting. (You can check the same in Cronus - This will definitely help you - Screenshot below)

    pastedimage1662181102217v1.png

    Within Tax Area -  There's Tax Jurisdiciton

    - Whereby you can create either State & County wise or State wise - It depends on how you want the data to be bifurcated. (You can Keep the Single G/L - Sales Tax Payable for all - As the bifurcation can me made easily by Tax Area)

    pastedimage1662181143056v2.png

    Click on - Select from full list - (Screenshot Below)

    pastedimage1662181187872v3.png 

    I hope this helps you. 

    Regards

    Karan

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

News and Announcements

Announcing Category Subscriptions!

Quick Links

December Spotlight Star - Muhammad Affan

Congratulations to a top community star!

Top 10 leaders for November!

Congratulations to our November super stars!

Tips for Writing Effective Verified Answers

Best practices for providing successful forum answers ✍️

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 291,359 Super User 2024 Season 2

#2
Martin Dráb Profile Picture

Martin Dráb 230,370 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Featured topics

Product updates

Dynamics 365 release plans