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[Sara Sharkey]

I found the below link on YouTube on how to set up sales tax in 365 Business Central.  It isn’t specific on if setting this up on the customer side creates a line that charges them the sales tax, or if it is just to accrue the sales tax in our records in order for us to use when we pay taxes to the associated state/county/city.  Any insight would be helpful.

https://www.youtube.com/watch?v=AfD-D9uf6po

YouTube		remove preview
Learn how to automate sales tax calculations by entering tax rates for the state, county, and city where they do business. This video demonstrates how Microsoft Dynamics 365 Business Central users can make sure that the correct tax rates are applied to sales and purchase documents. View this on YouTube >

Thank you, 

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Sara Sharkey
Senior Accountant
Compax
Salt Lake City UT
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[Jimmy Yu]

Hi Sara,

The short answer to your question is yes, BC will charge tax on the sales invoice to the customer.  However, a new line isn’t inserted.  In BC, on the sales invoice or posted sales invoice page, there won’t be an extra line but the tax is calculated in the background.  You can see it through the Statistics page.  On the printed invoice to the customer, there’s usually a line at the bottom of the invoice indicating the taxes for the entire invoice, again, not a separate line for each item charged.

The best thing to do is hop into a sandbox, configure one or two counties and then test it out.  If you have a customized sales printout document, it’s important to know that the taxes will be properly captured in the that output.

Hope that helps.

Regards,

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Jimmy Yu
Enterprise Architect
Step Energy Services Inc
AB
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[David Wiser]

Like Jimmy said, it does add the sales tax to the sales invoice so it is charged to the customer.  In addition, it adds lines to the Tax Entry table by jurisdiction to allow you to report and remit taxes.  You can run the Sales Tax Collected report for the time period required and see summary-level or detail-level information to help you fill out for tax forms.

Also, be aware that setting it up in BC requires some knowledge on taxability of products in your area and the different jurisdictions you need to report to.  I’ve found that if you are selling from one locations or into just 1-2 states, you would do fine with the built-in functionality.  If you are selling nationwide, it would be beneficial to look at a couple of the sales tax add-on products which can help with tax calculations, reporting, exemption certificate manegment, etc.

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David Wiser
President & Lead Consultant
Dynamics Northwest LLC
BCUG|NAVUG Board of Advisors
BCUG|NAVUG Programming Committee
BCUG|NAVUG All-Star
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