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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / BC TAX code integratio...
Small and medium business | Business Central, N...
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BC TAX code integration with Dynamics Sales (CE)

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Posted on by Samantha73 3,247
Hi All
AFAIK I don't think Dynamics Sales contains tax in sales or syncs with BC tax codes. What's the best way to integrate BC and Dynamics sales when it comes to tax? I can think of using either the standard by adding fields or virtual tables? Has anyone got any experience?
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  • Suggested answer
    Holly Huffman Profile Picture
    Holly Huffman 6,530 Super User 2025 Season 2 on at
    Good morning, afternoon, or evening depending on your location :)
    Hope you are well today!
     
    I see this was posted a while ago - hoping you've resolved already but incase not :)
     
    You're absolutely right—Dynamics 365 Sales (CE) does not natively support tax calculation in the same way Business Central does. This creates a gap when integrating the two systems, especially if you want tax codes or amounts from Business Central to be visible or usable in Sales.
    Here’s a breakdown of the best practices and options for tax integration between Business Central and Dynamics 365 Sales:
     
    Why Tax Doesn’t Sync by Default
    • Dynamics 365 Sales is primarily a CRM system and does not include built-in tax calculation logic.
    • Business Central, on the other hand, has a robust tax engine with Tax Area Codes, Tax Group Codes, and jurisdictional logic.
    • The standard Dataverse integration between BC and Sales does not include tax fields in the default table mappings [1] [2].
    Best Practice Integration Options
    Option 1: Extend Dataverse with Custom Tax Fields
    • Add custom fields to the Quote, Order, or Invoice entities in Dynamics Sales:
      • Tax Area Code
      • Tax Amount
      • Tax Group Code
    • In Business Central, extend the integration mapping to include these fields using custom integration table mappings.
    • Use Power Automate or custom AL code to populate these fields during sync.
    This is the most flexible and low-code approach.
     
    Option 2: Use Virtual Tables (Dataverse Virtual Entities)
    • Create virtual tables in Dataverse that expose Business Central tax data (e.g., Tax Area, Tax Group, Tax Rate).
    • These can be referenced in Sales forms or used in Power Apps to display tax info dynamically.
    • This avoids data duplication and keeps tax logic centralized in BC.
    Ideal if you want real-time tax visibility in Sales without syncing data.
     
    Option 3: Use Power Automate for Tax Calculation
    • Trigger a Power Automate flow when a quote/order is created in Sales.
    • The flow calls a custom API in Business Central to calculate tax based on the customer and items.
    • The result is written back to the Sales record.
     Requires API setup and careful error handling.
     
    Option 4: Use Avalara or External Tax Engine
    • If you're using Avalara or another tax engine in BC, consider integrating it directly with Sales via API.
    • Avalara has connectors for both BC and CE, which can help unify tax logic across systems.
     
    Integration Table Mapping Example (Custom)
    BC Table Direction Dataverse Table Field
    Sales Header ToIntegrationTable Invoice Tax Area Code
    Sales Line ToIntegrationTable Invoice Detail Tax Group Code
    Tax Jurisdiction ToIntegrationTable Custom Table Tax Rate

    References
    [1] Integrating with Dynamics 365 Sales - Business Central
    [2] Dynamics 365 Sales and Business Central integration setup (Set up a ...
     
    Note: I collaborated with Copilot to help craft this response for clarity and completeness.
    Hope this helps some!
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    YUN ZHU Profile Picture
    YUN ZHU 95,331 Super User 2025 Season 2 on at
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    Jainam M. Kothari Profile Picture
    Jainam M. Kothari 15,631 Super User 2025 Season 2 on at

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