A. Conditional sales taxes setup and transaction in D365 FO
A.
Conditional sales taxes setup and transaction in
D365 FO: -
1.
Business Requirement
Sales taxes are usually reported in the period when the invoice
is created.
Business
wants to report sales tax amount when the invoice is paid.
Example-
On June 10, you create an invoice of 10,000 plus 2,500 in sales
tax.
On
July 10, you report taxes for June. The 2,500 is not included in the sales tax
payment, because the invoice has not been paid.
On
July 15, the customer pays half of the invoice amount, 5,000, plus 1,250 in
sales tax.
On
August 10, you report taxes for July. The 1,250 is included in the sales tax
payment.
When
the customer settles the invoice with a second payment of 6,250, the remaining
sales taxes are reported and paid.
2.
Solution
If a sales tax authority allows for sales taxes and base amounts
to be reported when the invoice is paid, we can use the conditional sales taxes
functionality.
For invoices that are not fully settled with a single payment,
sales taxes are reported and paid to the sales tax authority on the amounts
that are settled, not on the total invoice amount.
3.
Overview of how to set up conditional sales taxes
a.
Required in some countries/regions:
Create
separate main accounts for sales taxes on invoices that are awaiting settlement
and create separate sales tax ledger posting groups to control the posting of
conditional sales taxes to the separate main accounts.
b.
Create a separate settlement period for
conditional sales taxes that is aligned with the settlement period for ordinary
sales taxes and for reporting to the sales tax authority.
c.
Create and align two sales tax codes:
one for the conditional sales tax and one for the sales taxes that you must
report.
d.
Set up sales tax groups and item
sales tax groups that contain one of the two sales tax codes that you created.
e. Select the Conditional sales tax check box in the Sales tax area of the General ledger parameters form.
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