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

Sales tax setup and configuration


In this section, we will be discussing the sales tax setup elements and the sales tax mechanism in Microsoft Dynamics 365 for Finance and Operations, in addition to different configuration options that affect sales tax calculation and posting. 

Sales tax setup elements

At the heart of sales tax is sales tax code. It carries settlement periods, ledger posting groups, and tax calculations. The settlement periods contain settlement period intervals, terms of payment, and optionally, the vendor ID, which represents the sales tax authority. Then, there are two main groups where the tax code is attached. The first is the sales tax group, which is assigned to vendors, customers, or ledger accounts. The second group is the item sales tax group, which is assigned to items or ledger accounts.

The following diagram illustrates the sales tax elements: 

To create a sales tax authority, go to Tax | Indirect taxes | Sales tax | Sales tax authorities. The Sales tax authorities...