Exam MB-310 topic 1 question 116 discussion

Option C is the correct approach because it involves creating sales tax ledger posting groups for each state to define the main accounts for tax liabilities and associating settlement accounts with vendor accounts in the vendor posting profile to ensure proper posting during the settle and post process. This configuration meets the requirement for automatic monthly transfers of sales tax liabilities to state-specific main accounts. https://knowledge.avalara.com/bundle/opo1663586089680_opo1663586089680/page/egi1743593988975.html

You cannot associate main account on Sales Tax Authority The correct answer is A.Create a sales tax settlement period for each state.​ In Dynamics 365 Finance, the sales tax settlement period defines the intervals at which sales tax must be reported and paid to the tax authority. By creating a separate sales tax settlement period for each state, you can specify the main account associated with each state's tax authority. This setup ensures that, during the sales tax settlement process, liabilities are correctly posted to the appropriate main accounts for each state.​ References https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/indirect-taxes-overview

How you associate main account with tax authority? I think A is correct

The correct answer is: D The correct approach involves creating a sales tax authority for each state and associating the respective main account with each tax authority. This ensures that when sales tax is settled and posted, it is transferred to the correct main account. A. Create a sales tax settlement period for each state: While setting up settlement periods is necessary, it does not handle the association with the main accounts directly. B. Select a vendor account during the sales tax group setup: This step is not related to configuring main accounts for posting sales tax liabilities. C. Create a sales tax ledger posting group for each state: While this can be part of the setup, it is not sufficient by itself. The critical step is associating the sales tax authority with the main account, which ensures correct posting during the settlement process.