Tax Schedule in Gravity Cloud Accounting Solution

In general, purchasing of products, services and agreements attract applicable taxes as defined by the regional government authorities.  Dynamics 365 Field Service enables users to define Tax Codes, Tax Group on products, services and agreements which come into action while fulfilling a work order. However, the functionality is limited as Dynamics 365 Field Service does not support different tax categories which would be required to encompass a wide range of business scenarios and also it won’t allow you to trigger the Chart of Accounts while invoicing. These drawbacks could be overcome by using Gravity Cloud Accounting Solution.


Gravity Cloud Accounting Solution is built on Dynamics 365 Power Platform and can scale up as per your business needs. It takes care of your complete accounting needs by leveraging advanced features such as Multi-Entity, Multi-Location Inventory, Advanced Find Query, EOS Scorecard, Dashboards, Dimensional Reporting, Complete Transaction Audit Trail, Full Role Based Security, and Segmented Chart of Accounts.


In this article, we will examine how to implement Tax Schedule in Gravity Cloud Accounting Solution through a step-by-step procedure.


Considering that you have already installed Gravity Accounting Solution, below are the steps you need to follow.

Step#1: From the sitemap, select Gravity module and then select System Settings under Gravity Settings.

You will be navigated to System Settings window as shown below.

Step#2: Click Entity Configuration. You will be navigated to a pop-up window where you need to define the entity configuration.
 

In this case, we have considered Gravity 1001 as an example for entity configuration.

On clicking, it will open a pop-up window which lists out sections such as Company Information, User Access, Financial, Purchasing, Revenue, Inventory, Dimensions and Sequence Numbers.
 

Step#3: Expand each section and fill the fields accordingly.


















Note: You can set the VAT Taxes to Yes or No depending upon your tax needs.


Step#4: Go back to the System Settings window and click Sales Tax Authorities under Revenue section.

It will open a new window with the list of Active Sales Tax Authorities. For demonstration, we have created SGST as the sample Sales Tax Authority.

Let us see what fields are available in the Sales Tax Authority by clicking the sample.

Name: Give a name to the Sales Tax Authority that you want to create.

Tax Category: Select the required tax category from the dropdown.  It has Sales, Exempt Sales, Purchases, Exempt Purchases, Exempt Income, GST Free Sales, GST Free Capital, GST on Capital, GST on Capital Imports, GST Free Imports, GST Free Expenses, BAS Excluded, EC Sales Goods, EC Sales Purchases, EC Acquisitions, Reverse Charges and UK MOSS Sales.

Tax Authority ID: Enter the appropriate Tax Authority ID.

GL Account: Select the Chart of Accounts on which this Sales Tax Authority will trigger.

Tax Rate %: Enter the value.

Tax on Products: Set it to Yes or No depending upon your requirement.

Tax on Labor: Set it to Yes or No depending upon your requirement.

Step#5: Go back to the System Settings window and click Sales Tax Schedules under Revenue section.

It will open the Active Sales Tax Schedules. Here, we have GST as a sample Sales Tax Schedule.

Also notice that we have assigned Tax Authority “SGST” which we created in Step#4 for GST Sales Tax Schedule.

Step#6: Navigate to Revenue area and Click Customers.

Let us check the Tax Information for a sample customer in Gravity Cloud Accounting Solution.




You can populate the Sales Tax that you have just created in the Sales Tax field, Set Tax Exempt to Yes or No.

Now, let us quickly see how tax works on Invoice.

Step#7: Navigate to Revenue area and click Invoices. Then click +NEW.

A new invoice form will be displayed.


Step#8: Fill in all the necessary fields and make sure the Tax Schedule is populated appropriately.

Step#9: In the Invoice Lines, select the Inventory Master and create a line item as shown below.

Step#10: Go to TAXES section and select the Tax Type as Exclusive of Tax.

Then the Totals will be calculated as follows.

Step#11: Go to TAXES section and select the Tax Type as Inclusive of Tax.

Then the Totals will be calculated as follows.

Step#12: Go to TAXES section and select the Tax Type as No Tax. Then no tax would be applied in the invoice.

Step#13: From the ribbon, click POST to post the invoice.

Step#14: Go to Posted Un-Paid Invoice view from Invoices.

Step#15: Click the Invoice that was just created. Then go to the Journal Entries created for this invoice.

The system will show the Journal Entry.

Step#16: Click on the Journal Entry to see the Chart of Accounts that were triggered.

You can notice that the Sales Tax Schedule which was configured has reflected in the Chart of Accounts. 

If you need any further assistance, feel free to email us at salesteam@mtccrm.com