Sales Tax on Invoice Journal

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Posted on by Naveen Bagri

Hi,

I will appreciate if someone can help me with below questions on AP invoices sales tax function:

1) I understand that D365 looks for the sales code that is common in sales tax group and item sales tax group. Would this mean the user doesn't have to pick any tax code while making an invoice entry? What if there are more than one common tax codes?

2) The system allows to post the invoice with blank values in both sales tax group and item sales tax group fields. Is this normal? Can we place a control saying tax group is mandatory before posting the invoice journal?

Thanks

Naveen

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Financial Management

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Ludwig Reinhard Microsoft Employee on at

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Hi Naveen,

For no1:

Yes.

If there are multiple tax codes applicable then you usually create a new line by creating a so called split posting

For no2:

There is a control available for this. In the chart of accounts you can specify the tax codes that are allowed to be posted with a specific account.

Best regards

Ludwig
Naveen Bagri 20 on at

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Thanks a lot Ludwig.

The only issue here is that the system asks for the sales tax even if it is a GL general voucher. How can we make this setup purely for AP?

Best regards,

Naveen
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Ludwig Reinhard Microsoft Employee on at

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Hi Naveen,

The tax controls are generic and apply to GL, AP and other modules that you use. That is because you can post vendor invoices also in GL journals. If you want to have this tax check limited to AP journals you would have to make an adjustment.

Best regards

Ludwig
Naveen Bagri 20 on at

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Got it. Thanks a lot Ludwig.
Ludwig Reinhard Microsoft Employee on at

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Hi Naveen,

If nothing else is open and if the question has been answered please be so kind and verify the answers. Many thanks and best regards

Ludwig
edoscou 36 on at

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Hi All,

Just to follow up on point #1.

My journal calculates tax using rates of both tax codes. How do I select only 1 code in the journal instead of having to manually override the other calculated amount to zero?

My other option is to go to Sale tax group and remove 1 code temporarily then add it back after I post the journal.

Our tax setup:

Sale tax group:

Item sales tax

Thank you