Book Image

Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

By : Mohamed Aamer Ala El Din
Book Image

Microsoft Dynamics 365 Enterprise Edition - Financial Management - Third Edition

By: Mohamed Aamer Ala El Din

Overview of this book

Microsoft Dynamics 365 for finance and operations is a rapidly growing application and is widely used in enterprise organizations. Because of its ability to maximize business productivity, it is a fast-growing business application package in the ERP market. We will start by looking into ERP concepts, implementation needs, and interface design, giving you basic knowledge of financial management aspects and explaining key concepts along the way. To begin with, you'll be taken through the general ledger and financial dimension functions. You'll later learn about the sales tax mechanism and multi-currency in Microsoft Dynamics 365. We tackle each topic with focused examples and explanations on topics such as payable/receivable accounts, forecasting, cash and bank management, budgeting planning/control, and fixed assets. Finally, we walk you through intercompany, consolidation, costing basics, and financial reporting. By the end of this book, your finance team will have a much richer understanding of Microsoft Dynamics 365 for finance and operations and its powerful capabilities.
Table of Contents (24 chapters)
Title Page
Copyright and Credits
Dedication
Packt Upsell
Contributors
Preface
Index

Understanding withholding tax


Withholding tax is calculated and executed at the vendor payment process. The calculated reflection of the withholding tax on the finance module will be as follows:

  • Price includes sales tax: For a 1% withholding tax, 10% sales tax, and a 1,000 USD price including tax, 909.09 USD excludes tax, and this amount is the base of the withholding tax (909.09 * 1%). The system will allocate 9.09 USD to the withholding tax payable account, and 990.91 USD will be allocated to the payable account. The following diagram shows the calculation:
  • Price excludes sales tax: For a 1% withholding tax, 10% sales tax, and a 1,000 USD price excluding sales tax, this will be the base of the withholding tax calculation (1,000 * 1%), and the amount including sales tax is 1,100 USD. The system will allocate $10 to the withholding tax payable account and 990 USD will be allocated to the payable account. The following diagram shows the calculation:

Note

The Withholding tax checkbox on the vendor...