Apply right tax with minimal effort in order entry for product variants

Important

This content is archived and is not being updated. For the latest documentation, go to What's new or changed in Dynamics 365 Supply Chain Management. For the latest release plans, go to Dynamics 365, Power Platform, and Cloud for Industry release plans.

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Users by admins, makers, or analysts Apr 21, 2023 Jun 16, 2023

Business value

In some countries or regions, sales tax may differ for variants of the same product (such as for different sizes of clothes). Businesses facing this issue are confronted with the pain of having to set these tax rates manually for each sales order and quotation line, resulting in extra work and the risk of error. Defining the item sales tax group at the released-product variant level eliminates this pain, effort, and risk.

Feature details

With this feature, you can set a specific item sales tax group for any or all released product variants, both for sales and procurement. This eliminates the cost, pain, and risk of not having the correct taxation applied to an order line for a product variant.

When an item sales tax group is set for a released product variant for sales, this tax group is used as the default when creating a sales quotation or sales order line for that variant. If a specific tax group isn't set for a released product variant for sales, then the tax group set for the released product is used as the default instead.

Similarly, for a purchase order or purchase requisition, if a specific item sales tax group is set for a released product variant for purchase, then this is used as default.

See also

Set up variant-specific sales tax groups for sales and/or procurement (docs)