Learn the two essential actions to set up and manage tax rules and rates for multi-country operations in Microsoft Dynamics 365 Finance. Simplify tax compliance effortlessly!
Table of Contents
Question
Contoso, Ltd. has recently expanded its operations to multiple countries and is dealing with various tax authorities. You need to set up a system that can handle different tax rules and rates, and also update them periodically as per the requirements of tax authorities. What two actions should you perform ? Each correct answer presents part of the solution. Choose two.
A. Set up sales tax codes to define the amounts or percentages that must be collected.
B. Use the Accounts Receivable module to track tax invoices and incoming payments.
C. Use the General Ledger module to record all tax transactions.
D. Use the sales tax framework to calculate and document indirect taxes during purchase and sales transactions.
Answer
A. Set up sales tax codes to define the amounts or percentages that must be collected.
D. Use the sales tax framework to calculate and document indirect taxes during purchase and sales transactions.
Explanation
Setting up sales tax codes and using the sales tax framework allows you to handle different tax rules and rates, and also update them periodically as per the requirements of tax authorities. The General Ledger module records all financial transactions but does not specifically handle tax rules and rates. The Accounts Receivable module tracks customer invoices and incoming payments, not tax rules and rates.
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