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Create tax codes

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Set up tax codes in Dynamics 365 Field Service and specify how much tax will be applied to your products, agreements, and services.

Enabling tax calculation

Field Service v8.8.39.37 introduced the Calculate Tax field in Field Service Settings. By default, for all new installations of Field Service v8.8.39.37 or higher, this field will be set to No. For many Field Service organizations, tax calculation is not an important factor because:

  • The services are not being provided to an external customer.
  • The tax calculation and application rules are complex enough that they are handled in a related ERP system.

When an organization needs to calculate tax and the Field Service tax logic is sufficient, set the Calculate Tax field to Yes for all tax fields to be visible and all calculation logic to be enabled.

When toggled, this will hide/show and disable/enable logic for the following tables and fields:

Table Fields impacted
Work Order Taxable, Tax Code, Tax Amount, Subtotal Amount
Work Order Type Taxable
Work Order Product Taxable
Work Order Service Taxable
Account Tax Exempt, Tax Exempt Number, Sales Tax Code
Agreement Taxable, Tax Code
Purchase Order Bill Tax Amount, Tax Code
Product Taxable
RMA Taxable, Tax Code
RMA Product Taxable
Quote Detail Taxable, Tax Code

Set up tax codes

Each tax code may contain multiple child tax codes; in that case, the tax rate will be determined by the total of all children.

If an area has more than one type of tax, for example, state and county tax, then use the Tax Group option to combine several tax codes into one group.

For example, if the state of California has a state and county tax, then you might have a tax group called "California, Alameda County." The tax group will have two tax codes: one for overall California state tax and one for Alameda County local tax.

  1. From the main menu, go Field Services > Administration, and then choose Tax Codes.

  2. On the Active Tax Codes screen, select +New in the upper left corner.

  3. Use the tooltips to help fill in your information, and then select Save.

  4. If Act as tax Group is set to Yes:

    1. Go to the Tax Code Details section and select +Add Tax Code Detail record.

    2. Specify the Tax Code.

    3. If the government agency charges tax above the local tax then set Tax on tax to Yes.

      For example, the Canadian government charges Provincial Sales Tax (PST) and Goods and Services Tax (GST). You will need to set a tax on tax.

      For instance, if the work order total equals $100, the first tax code in the group is calculated on the $100. If the tax code is 5%, then the total is now $105. If the second code in the tax group is 10%, and it is marked as a tax on tax, the 10% is calculated on $105 instead of $100, which makes the total $110. However, if the second code is not flagged as a tax on tax, then the 10% is calculated on the initial work order amount, of $100.

    4. In the Line Order field, enter the order of how the system should calculate the multiple tax codes.

    5. Select Save.