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Hi,
Hopefully someone can help with this.
The below is a simplified general journal with amounts entered Sales Tax exclusive, obviously the Sales amount would be Debited to the Sales Tax main account. My question is where does the offset of the Sales Tax get credited to, and is there anywhere in the general journal entry screen to view this prior to posting the journal?
Thanks in advance.
Hi Swatson86,
What kind of transaction do you record?
Is this an invoice transaction?
If so, I would recommend using the subledgers (AP or AR)
About the sales tax:
In D365FO you usually don't post sales tax directly on a sales tax main account.
The system is doing that for you based on the item sales tax group and sales tax group that you have selected in your voucher.
Best regards,
Ludwig
Hi Ludwig,
Thanks for your response.
This transaction is directly to the ledger. The sales tax main account and amount is automated by the item sales tax group and sales tax group as you've mentioned, but then this needs to be offset with a credit for the same amount.
What I can't work out is if there is anyway to manually select the main account for this offset amount, as it seems to be selecting the main account for the first credit in the journal.
From the information that was shared; i understand that you are posting an tax adjustment journal to tax ledger account.
If so, as suggested by Ludwig; this is not best practice to recommend subject to exceptions. Assuming that your scenario is an exception; you don't need to update sales tax group or item sales tax group. Instead you can update Tax direction and sales tax code.
And the entry looks as below:
Hope this helps to answer your question. If so mark the thread as answered.
Best Regards
Ashok Kumar Gupta Ega
Sr. T.A, Microsoft.
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