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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Correct tax rate
Finance | Project Operations, Human Resources, ...
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Correct tax rate

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Posted on by PN004 49
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,
  • Verified answer
    Kevin Xia Profile Picture
    Kevin Xia Microsoft Employee on at
    Correct tax rate
    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
  • Verified answer
    Hana Xue Profile Picture
    Hana Xue Microsoft Employee on at
    Correct tax rate
    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
  • PN004 Profile Picture
    PN004 49 on at
    Correct tax rate
    Hi Ramit,
     
    Thanks for you response, where is that parameter on the system?
     
    thanks
  • Suggested answer
    Ramit Paul Profile Picture
    Ramit Paul 22,300 Most Valuable Professional on at
    Correct tax rate
    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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