Exam MB-310 topic 1 question 92 discussion

Use Tax refers to a tax imposed on the use, storage, or consumption of goods or services in a jurisdiction when sales tax was not paid at the point of purchase 🔹 B. Ledger posting group : This defines how sales and use taxes are posted to the general ledger. It ensures that sales tax payable is consistently posted to a single ledger account as required. Without proper ledger posting groups, your use tax won’t be properly tracked or posted. 🔹 D. Taxation rule : Taxation rules determine how tax applies to transactions depending on the origin and destination of the goods. This is essential for Use Tax, especially when goods are purchased from Brazil and used in the U.S. It helps identify that use tax, rather than sales tax, applies.

Use tax is specific for United States-BC

Use tax is a simple checkbox on the tax code, so it needs a tax code per country. A description can be found here: https://community.dynamics.com/365/financeandoperations/b/msdynamics365-empowered-community/posts/how-to-setup-european-use-tax-mechanism-concept-and-configuration

B. Ledger posting group: This parameter is used to group ledger accounts that have similar posting characteristics, such as tax liability accounts. You should configure a single ledger posting group for all legal entities that will track sales tax payable. D. Taxation rule: This parameter is used to define how tax is calculated and posted for specific tax codes. You should configure a taxation rule for Use Tax, which is a tax on the use or consumption of products that were not subject to sales tax at the time of purchase. The taxation rule should be configured to apply to all legal entities that will track Use Tax. A, C, and E are not directly related to tracking Use Tax. A single sales tax code for Brazil or the United States would not be sufficient to track Use Tax, as Use Tax is a separate tax that is applied in addition to sales tax. Tax codes for each legal entity would be used to track sales tax, but not specifically Use Tax. SERG serg e2-e4 That is a chess notation for the opening move of a pawn in front of the King. It is also called the King's Pawn opening.