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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Tax Posting Setup
Small and medium business | Business Central, N...
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Tax Posting Setup

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Posted on by AriaConsulting 2,655
Hey all,
 
I'm new to BC (BC version 22 currently) and doing an implementation for my own company (which is just me). Yes, I'm implementing an ERP for a 1-person company 😉. Why? A combo of I needed a new finance system, but I also want to learn BC from a professional perspective. To that end, I'm working through the MS Learn Learning Paths and doing setup and config in my environment accordingly. Because nothing beats hands-on learning, right?
 
So, with that preamble out of the way, I'm looking for some help to understand setting up the tax system and the MS Learn content is somewhat out of date so its proving a bit more challenging. I'm located in Canada so I need to setup for VAT (GST, PST, HST). My understanding from the Learn material is that I need to setup the intersection of the Business and Product Posting groups. But I'm unclear as to how many of these I need to setup, and what I should be creating/choosing for the different field values. What I have so far:
 
I don't know if I need the /BC PST/ entry, or if I need similar entries for the other provincial taxes like HST in Ontario and New Brunswick and such. I also don't clearly understand what these fields should have as values:
 
Tax Identifier, what should go here?

Tax Calculation Type, I don’t understand the difference between “normal” and “full”?

Unrealized tax Type, which should I choose for each record?

Tax Clause Code, what should go here?

Tax Category Code, what should go here?

Sales and Purchases FastTabs, do I need to select accounts here? What if I don’t populate these?

Thanks very much!
Categories:
Business Central
  • Suggested answer
    KasparsSemjonovs Profile Picture
    KasparsSemjonovs 3,926 Super User 2024 Season 2 on at
    Tax Posting Setup
    Tax Identifier, what should go here?
    This is just an identifier of your choosing. System will group this on printouts if VAT Specification is printed. No real impact on accounting form this. Usually they are just VATxx  to group identical percentages.

    Tax Calculation Type, I don’t understand the difference between “normal” and “full”?
    Normal is the VAT percentage associated. Full is always 100% - like for some custom taxes when importing goods. Also Type could be reverse charge
    Unrealized tax Type, which should I choose for each record?
    Only needed if You need unrealized tax - like for Prepayments. Once prepayment invoice is posted, but not yet paid, the calculated tax is unrealized. 
    Tax Clause Code, what should go here?
    Only if needed, can add a Clause for this tax group - that can be printed on invoices. Usually goes together with European union regulation article references.
    Tax Category Code, what should go here?
    Just a category - but could be something US specific. 
    Sales and Purchases FastTabs, do I need to select accounts here? What if I don’t populate these?
    Then you will get error on Sales/Purchase document postings if left blank. After error You can fill in.
  • Suggested answer
    DAnny3211 Profile Picture
    DAnny3211 9,272 Super User 2024 Season 1 on at
    Tax Posting Setup

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