Microsoft Dynamics 365 Finance — Question 1

A legal entity has locations and customers in multiple states within the United States.
You need to ensure that taxable customers are charged sales tax for taxable items in their delivery location.
Which three settings must you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

Answer options

• A. the Sales tax group on the Customer record
• B. the Terms of delivery setup
• C. the Item Sales tax group on the Item record
• D. the Sales reporting codes
• E. the Sales tax codes

Correct answer: A, C, E

Explanation

The correct answer includes 'the Sales tax group on the Customer record,' 'the Item Sales tax group on the Item record,' and 'the Sales tax codes' as these settings directly relate to determining the appropriate tax for each customer and item. The other options, such as 'the Terms of delivery setup' and 'the Sales reporting codes,' do not directly influence the calculation of sales tax for taxable items.