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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Sales tax code - Tax M...
Finance | Project Operations, Human Resources, ...
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Sales tax code - Tax Module

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Posted on by CU16050927-0 9
Hi everyone,
 
I'm writing here to ask for your support, because I've not yet find out a solution of what is the purpose of a specific parameter included in the sales tax code section.
 
I'm talking about this flag: "RECONCILE AMOUNT ORIGIN", you can see the picture that I've attached here.
 
If I set this flag on "Yes", or "no", I don't see any difference with the sales tax, after posting an invoice.
The description says that "origin" and "marginal base" option must be set respectively to "percentage of net amount" and "net amount of invoice balance".

Can you tell me an example of case to be done, to understand the difference between on and off?
 
Thank you very much
Your help will be much appreciated
 
Gianluca
 
 
 
SalesTaxCode_ITCO22%.jpg
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Dynamics 365 Finance
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  • Verified answer
    Saalim Ansari Profile Picture
    Saalim Ansari 708 on at
    Hii,

    The "Reconcile amount origin" flag in the Sales Tax Code setup in Dynamics 365 Finance is used in specific tax calculation scenarios, particularly when dealing with VAT reconciliation in countries that require partial tax deduction (such as Italy or France).

    This flag only takes effect when the Calculation origin is set to “Percentage of net amount” and the Marginal base is set to “Net amount of invoice balance.” When enabled, it tells the system to track the original taxable base amount used to calculate the VAT.

    This is especially useful when a portion of the VAT is non-deductible, for example, when only 50% of the VAT can be recovered. With this flag set to Yes, the system stores the original basis for reconciliation and reporting purposes, helping generate accurate tax reports showing how much VAT is deductible versus non-deductible. If the flag is set to No, the system does not track this base separately, and VAT is calculated and posted without storing its origin for future reconciliation. Although users may not see a visible change in the invoice posting screen, the effect is noticeable in tax reporting and reconciliation functions.

    Thanks     for sharing the file. Just a small suggestion for next time — it might be more convenient to share a screenshot instead of a file, if possible. It helps quickly understand the issue without needing to download and open anything.

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