Sales Tax Setup is not so Difficult

Most Dynamics GP users I talk with, complain about the sales tax functionality. They say it’s difficult to set up and maintain. I don’t necessarily agree.

I just updated the new tax rates effective in California as of July 1, 2009. Because I had setup the taxes using Tax Schedules that contain individual Tax Details to represent the different taxing agencies, all I had to do was update the Tax Details that changed. In my case, the one Tax Detail that changed was Los Angeles County. Once I changed the one Tax Detail, it will effect all Tax Schedules that include that Tax Detail; perhaps six.

The task was simplified because the CA Board of Equalization publishes a list of tax rates. There are maybe 130 different taxes on this. An added bonus; this report includes four character codes that can be used for the Tax Detail ID.

When I set up sales tax in GP, I start with the tax return that needs to be filed on a periodic basis, and figure out how much detail I will need to assist in reporting. I then identify the different tax details that need to be created, and then create the Tax Schedules to contain the details. The set up takes some time, but keeping the rates up to date; not so difficult.

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