Make your Dynamics 365 F&O Compatible With the GST Compliances

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 leveraging 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 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.
configuration

 Workspace >> Electronic Reporting

  • Load two XML in 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.

Reporting configuration
  • GST Authority
    • Create GST Authority for GST Payment.
    • For that, we have to create one vendor in the Account payable module.
GST Authority
  • Leverage this vendor when we create Tax authority.
  • Following is the path to set up Tax Authority.

Tax >> Indirect Tax >> Tax >> Tax authorities

Vendor Account

– Click on the NEW button and attach the Vendor we created in the previous step.

  • Settlement period
  • In the Indian scenario, one should make 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.
Settlement 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. .
Main Account

– Under the Posting validation tab select India GST Posting type

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.

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I am a Functional Consultant (Chartered Accountant) at Dev Information Technology Ltd. I have 2 years of experience in Microsoft Dynamics AX/Dynamics 365 (ERP) and have worked on projects in private sector.

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