Correct tax rate

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Posted on by PN004

Hello,

This is probably an easy one but I can't seem to work it out. I have a tax setup with:

1. Sales tax code of 5%

2. That Sales tax code assigned to an item sales tax group with only that sales tax code as part of it

3. That Sales tax code part of a sales tax group with only that sales tax code as part of it

I'm trying to post a GL journal with an amount of $210.00. The system is currently taking that as the net amount and adding 5% so the total is $220.50. I want that $210 as the total amount of which 5% is calculated from i.e. net is $200 & tax is $10.

I'm using D365 platform update 59

thanks,

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Suggested answer

Ramit Paul 22,797 Most Valuable Professional on at

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Hi,

When you are using any JV or Po or sales order, keep "Price inclusive of tax" = yes , it will work.

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PN004 on at

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Hi Ramit,

Thanks for you response, where is that parameter on the system?

thanks

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Hana Xue Microsoft Employee on at

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Hi,
While creating a sales order or purchase order, there is a price include sales tax option as shown in the screenshot:

In addition, you can check this document, which mentions how to calculate the tax amount by excluding from base amount calculation. When this parameter is enabled for a tax code, if the price includes sales tax, the Tax Calculation Service will calculate the tax amount for the marked sales tax code as if it were not included in the base.
Calculate tax on prices when Prices include taxes is enabled - Finance | Dynamics 365 | Microsoft Learn
Best Regards,
Hana

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Kevin Xia Microsoft Employee on at

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Hi,

As Ramit and Hana said, you can check the box for Price inclusive of tax, you can refer to this official documentation: Set up tax codes - Finance | Dynamics 365 | Microsoft Learn. This article explains how to set up tax codes in the Tax Calculation service. It includes the setup for a simple scenario to make the tax code work and information about some advanced tax code functionality for complex scenarios.

Best regards,

Kevin

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