Learn how to automatically calculate and apply the correct sales tax in Microsoft Dynamics 365 Business Central. Discover the importance of setting up tax groups and area codes to ensure accurate tax rates based on customer location and product type.
Table of Contents
Question
Your company needs to ensure that sales tax is calculated correctly on all sales transactions.
You need to set up the system to automatically calculate and apply the correct sales tax for each transaction.
What should you do?
A. Set up tax groups and tax area codes to calculate sales tax based on customer location and product type.
B. Apply a flat sales tax rate to all transactions regardless of location or product type.
C. Manually calculate and enter sales tax for each transaction.
D. Disable sales tax functionality and handle tax calculations externally.
Answer
A. Set up tax groups and tax area codes to calculate sales tax based on customer location and product type.
Explanation
Setting up tax groups and tax area codes allows the system to automatically calculate the correct sales tax based on customer location and product type. Applying a flat sales tax rate (Option B) does not account for varying tax rates. Manually calculating sales tax (Option C) is time-consuming and prone to errors. Disabling sales tax functionality (Option D) is not practical for a company that needs to manage sales tax internally.
Microsoft Dynamics 365 Business Central Functional Consultant MB-800 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 Business Central Functional Consultant MB-800 exam and earn Microsoft Dynamics 365 Business Central Functional Consultant MB-800 certification.