Dynamics GP Sales Tax Mea Culpa

Dynamics GP Sales Tax Mea Culpa

Before I was as smart as I am today, I used to think that the Dynamics GP sales tax functionality was perfectly adequate. I was wrong. It certainly can work well if you do business in just a few states and those states don’ t have much variation in how sales tax is calculated and reported. But for almost everyone else it is just too much to maintain and work with.

This post is evidence that I just didn’t know what I was talking about: Sales Taxes, Not so Difficult.

On April 1, 2013, sales taxes in California changed for about 19 cities and 3 counties. Because I’m the only one in our office that has a cheerful attitude about Dynamics GP sales tax functionality, I have the honor of updating the sales tax tables in our GP system whenever the local electorate votes as a majority to raise sales taxes.

Frankly the task just hadn’t been that difficult and I was happy to do it. That has now changed. It’s a pain in the neck to do.

Usually changing rates is simple, and I set up our Tax Details and Tax Schedules to be easy to update.

This is why it was difficult this time:

  • Because there are at least 15 new cities and counties now assessing and collecting sales taxes, I had to set up 15 new Tax Details and 15 new Tax Schedules
  • I had to add all the new tax details to the “ALL TAXES”  tax schedule
  • Need to review customers in jurisdictions with new sales taxes, and make sure they are assigned to the appropriate Tax Schedule.

And I don’t even know how the periodic reporting is going to work. I’ll leave that for a later time.

Now I recommend that if you have much of a sales tax issue at all, you use a tax calculating and reporting service that ties in with Dynamics GP. There are several to choose from. The one that we have been specifying lately is: http://www.avalara.com/ Check out their goERPcloud information here:

Dynamics GP Sales Tax

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