Make your Dynamics 365 F&O Compatible With the GST Compliances
Goods and Services Tax (GST) was implemented on 1st July 2017 by the government of India. Every business or individual with a turnover of over 20L/ annum is directed to comply with the set GST norms.
It has become imperative for every small, medium, or large company to leverage Dynamics 365 F&O to configure the software accordingly. Experts at DEV IT have written this detailed guide to set up GST in Dynamics 365.
To configure Dynamics 365 Finance & Operations following steps are to be followed:
- Load XML
- Tax configuration
- report configuration
- GST Authority
- Settlement period
- Create a ledger with posting type India GST
- Create HSN Code and Service Code
- Configuration in tax setup
- Add company and activate
- Tax hierarchies
- maintain setoff hierarchy profiles
- Bind HSN to item
- Map GSTIN customer and vendor
We shall discuss some of the points mentioned above in the blog:
- Load XML
- Download XML from lcs.dynamics.com and the same needs to be loaded in Dynamics 365
- Downloaded XML should be loaded in the path as shown in the picture
Workspace >> Electronic Reporting
- Load two XMLs in the following configurations
- Tax configuration
- Reporting configuration
- Under Tax Configuration, click on the Exchange button to load a particular format. The system will ask for a path to load configuration
Similarly in the reporting configuration click on the Exchange button to load a particular structure. The system will ask for a path to load configuration.
- GST Authority
- Create GST Authority for GST Payment
- For that, we have created one vendor in the Account Payable module
- Leverage this vendor when we create Tax authority
- Following is the path to setting up a Tax authority
Tax >> Indirect Tax >> Tax >> Tax authorities
Click on the NEW button and attach the Vendor we created in the previous step
- Settlement period
- In the Indian scenario, one should make a payment of GST Monthly
- To set up payment cycles in GST, we use the settlement period in Dynamics 365
- Following is the path to set up the settlement period
Tax >> Indirect Tax >> Tax >> Tax settlement periods
- Click on NEW to create a Settlement period. Select authority as we have made in the previous step
- The period internal unit should be a month, and the Period internal duration should be 1
- Click on the new period interval to create a Period
Create a Ledger by typing India GST
- For the Posting of CGST Receivable, SGST Receivable, and other ledgers, we have to create a primary account with posting type GST in the Chart of Account
- Following is the path to set up the Main Account
General ledger >> Chart of accounts >> Accounts >> Main accounts
- Click on the NEW button to create a new record and select fields the same as shown in the screenshot below:
- Under the Posting validation tab select India GST Posting type
Hope you can now easily configure GST with Dynamics 365 F&O. In case of any queries, do reach out to an expert at DEV IT here.