Hi Dhanicca,
These two setups are requirement for month end settlements for sales tax. Required basic setups are:
1. Sales tax authority : Tax > Indirect tax > Sales Tax where you map the vendor account of "Tax Authority"
2. Sales tax settlement period: Tax > Indirect tax > Sales Tax, where you define how frequently the returns to the Tax authority will be filed, it all depends county to country statutory requirement
Now coming to use of these two:
1. In Declaration section: as per sales tax settlement period definition, company run the settlements process for entire period for arrive at the sales tax amount based on entire month sales & purchase transactions for each registration number,
2. As result we get the liability created based on localization requirement rules for the "Tax Authority" vendor account as mentioned in above setup
3. Now as next step company process the payment for "Tax authority " using payment journal
4. After Payment if require company can enter Challahan details in payment journal
Reporting:
To view settled transaction or payment made for the authority for a specific period , navigate to :
Tax > Indirect Tax > Sales Tax > Sales tax settlement period > Click on sales tax payments
Here is one of my blog for withholding tax process from Indian localization but will give you overview about the end to en processes for Tax:
exploredynamics365.home.blog/.../
