Introduction
This module explains how to configure and use ledger posting groups for sales tax management in Microsoft Dynamics 365 Finance. It covers the setup of essential accounts in the chart of accounts and how ledger posting groups automate sales tax calculations during invoice postings.
Module scenario
You're a finance manager at a multinational corporation. Your company trades goods and services across various regions, each with its unique tax laws and regulations. To help ensure legal compliance and efficient tax management, you need to set up and manage sales taxes in your company's Finance system. The challenge is to understand and configure various components, such as ledger posting groups, sales tax authorities, settlement periods, sales tax codes, sales tax groups, and item sales tax groups. This setup is important because it impacts the calculation, collection, and payment of sales taxes, which directly affects your company's financial health and legal standing.