Q:

A company is expanding its retail business into a location that has a different sales tax.

You need to set up a new sales tax code in Dynamics 365 Finance to accommodate the expansion.

Which two elements should you specify to create the sales tax code? Each correct answer presents part of the solution.

This item tests the candidate’s knowledge of the initial setup steps, required fields, and configuration when setting up a sales tax code in Dynamics 365 Finance.

Settlement period is correct because it is a required field when creating a sales tax code. The sales tax settlement period contains information about the period intervals for which sales tax needs to be reported and paid.

Ledger posting group is correct because it is also a required field when creating a sales tax code. Sales tax is calculated and posted to main accounts that are specified in the Ledger posting group field.

Print code is incorrect because it is not mandatory when creating a sales tax code. Print code is used to determine invoice printing settings.

Marginal base is incorrect because it is not mandatory when creating a sales tax code. Marginal base determines which amount is used to pick the appropriate tax rate(s) from the rates in the Sales tax code values page.

Rounding precision is incorrect because the value is not mandatory when creating a sales tax code. Rounding precision determines how calculated amounts in the payload from the tax calculation service are rounded.

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Set up sales tax codes - Finance | Dynamics 365 | Microsoft Learn