Discover the best practices for configuring sales tax in Microsoft Dynamics 365 Finance. Learn how to handle multi-jurisdiction tax calculations accurately with an automated tax data model.
Table of Contents
Question
Contoso, Ltd. is setting up Microsoft Dynamics 365 Finance and needs to configure sales tax. This sales tax is for transactions involving multiple jurisdictions with varying tax rates and rules. You need to create a solution that allows for accurate sales tax calculation and reporting for transactions across different jurisdictions. What should you recommend?
A. Configure a single sales tax code with an average tax rate to simplify the tax calculation process for all jurisdictions.
B. Implement a comprehensive tax data model that includes header fields and line fields of transaction documents for automated and standardized tax determinations and calculations.
C. Manually calculate and apply sales tax for each transaction based on the jurisdiction’s tax rate to ensure accuracy.
D. Use the default sales tax codes provided by Dynamics 365 Finance without any jurisdiction-specific configurations.
Answer
B. Implement a comprehensive tax data model that includes header fields and line fields of transaction documents for automated and standardized tax determinations and calculations.
Explanation
Option B is correct because it leverages the tax calculation data model to automate and standardize tax determinations and calculations, which is essential for handling multiple jurisdictions. Option A is incorrect as it does not accommodate varying tax rates and rules. Option C is incorrect due to its inefficiency and potential for errors. Option D is incorrect as it does not consider jurisdiction-specific tax requirements.
Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the Microsoft Dynamics 365 Finance Functional Consultant MB-310 exam and earn Microsoft Dynamics 365 Finance Functional Consultant MB-310 certification.