How to Set Up Item Sales Tax Groups for Product Variants in D365
Introduction
Managing sales tax for product variants in Microsoft Dynamics 365 Finance and Operations can be simplified by utilizing the “Apply Sales Tax Group for Product Variants” feature. This feature allows businesses to assign specific sales tax groups to released product variants, ensuring tax accuracy in both sales and procurement processes. In this guide, we will explore how to enable and set up this feature to streamline tax application for product variants in D365.
Using Apply sales tax group for product variants in sales and procurement feature it is possible to set up a specific item sales tax group for a released product variant.
The specific item sales tax group for a released product variant can be set up both for sales and procurement.
If a specific item sales tax group is set up for a released product variant for sales, then this item sales tax group is used as default when creating a sales quotation and sales order line.
Similarly, for purchase order, purchase requisition, if a specific item sales tax group is set up for a released product variant for purchase, then this is used as default.
First, we need to Enable ‘Apply sales tax group for product variants in sales and procurement’ feature in Feature management, so this feature allows to set up product variant specific item sales tax group in released product master in product information management module.
Setup Item sales tax group to released product variant:
- Go to Product information management > Products > Released products.
2. Select product master to which user can default item sales tax group for product variant.
3. Click on Product tab > Product master > Released product variants.
4. Here, we can find product variants related to the product master.
5. Click on respective variant.
5. Give respective item sales tax group under Purchase and sell tab as shown below
6. Click on Save.
- Here, we can select another variant and can default item sales tax group and click on save.
Process:
- Go to Procurement and sourcing > Purchase orders > All purchase orders.
- Click on NEW and create a Purchase Order.
- Add line and give Item number and product variant number.
- Once the product variant number is given, then the respective item sales tax group will be automatically populated in the line details tab > setup > sales tax > item sales tax group.
- Here, we can give different variant number then find respective item sales tax group will be automatically populated in the line details tab > setup > sales tax > item sales tax group.
NOTE
If the item sales tax group is not specified to a released product variant, then the item sales tax group of the product is used as default.
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Conclusion
The ability to apply specific item sales tax groups to product variants in Dynamics 365 is a powerful feature for businesses managing diverse product lines. By following the steps outlined in this guide, you can enable and configure sales tax groups for product variants in both sales and procurement, ensuring the correct tax rates are automatically applied. This feature not only improves tax compliance but also simplifies order management across different product variants. If no sales tax group is specified, D365 will use the default group for the product, ensuring continued accuracy.
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