A legal entity has locations and customers in multiple states within the United States.
You need to ensure that taxable customers are charged sales tax for taxable items in their delivery location.
Which three settings must you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
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A. B. C. D. E.ABE.
In order to ensure that taxable customers are charged sales tax for taxable items in their delivery location, there are three settings that must be configured in Microsoft Dynamics 365 Finance. These settings are:
A. The Sales tax group on the Customer record: A sales tax group is a grouping of tax codes that are applied to customers or groups of customers. In Dynamics 365 Finance, you can create sales tax groups for customers based on their taxability in different jurisdictions. By assigning a sales tax group to a customer record, you ensure that the appropriate tax codes are applied to their orders when they are processed.
B. The Terms of delivery setup: Terms of delivery are the conditions under which goods are delivered to customers. In Dynamics 365 Finance, you can set up terms of delivery that include rules for calculating sales tax based on the delivery location of the customer. By configuring the terms of delivery for your legal entity, you ensure that the appropriate tax rates are applied to orders based on the delivery location of the customer.
E. The Sales tax codes: Sales tax codes are used to identify different types of taxes that are applicable to sales transactions. In Dynamics 365 Finance, you can set up sales tax codes for different tax jurisdictions and rates. By configuring the sales tax codes for your legal entity, you ensure that the appropriate tax rates are applied to sales transactions based on the jurisdiction in which the transaction occurs.
Therefore, in summary, to ensure that taxable customers are charged sales tax for taxable items in their delivery location, you need to configure the sales tax group on the customer record, terms of delivery setup, and the sales tax codes.