MEM Tax Reporting Entity Setup

Use this page to specify entity for which tax amounts are reported. The tax reporting entity is applicable for all tax jurisdictions and to all transactions. Tax jurisdictions are part of standard Microsoft Dynamics 365 Business Central functionality. For more information, see the Microsoft Dynamics 365 Business Central documentation.

Review the following example on how this page is set up and the tax reporting is applied.

Entity	Reporting Entity
000	000
800	000
900	000
500	500

Entities 000, 800, and 900 use entity 000 as the tax reporting entity. Entity 500 uses 500 as the tax reporting entity.

A sales order with a header entity 100 is created. The lines with the amount and tax amount are as follows: 

Entity	Amount	Tax Amount
000	100.00	5.00
800	50.00	2.50
900	200.00	10.00
500	1000.00	50.00

The journal entries are as follows: 

AR		1,417.50		100 (header entity)
	Revenue		100.00	000
	Tax Payable		5.00	000 (line entity)
	Revenue		50.00	800
	Tax Payable		2.50	000 (line entity - reporting entity)
	Revenue		200.00	900
	Tax Payable		10.00	000 (line entity - reporting entity)
	Revenue		1000.00	500
	Tax Payable		50.00	500 (line entity - reporting entity)

When reports are generated, the tax amounts for entities 000, 800, and 900 are consolidated to a single line for entity 000. Tax amounts for entity 500 are reported on a separate line for entity 500.

Fields

This page contains the following fields: 

Field	Description
Entity	Select an entity for which you want to use a different entity for tax reporting purposes.
Reporting Entity	Select the entity for which tax amounts are reported.