Microsoft Dynamics 365 Finance — Question 49

A company uses Dynamics 365 Finance. The company is based in the United States and sells a product online. The product is shipped to the United States,
Canada, and Mexico. The product is sourced from Brazil.
Legal entities must be set up for each country/region. One ledger account must be used to track sales tax payable.
You need to configure the system to track Use Tax.
Which two parameters should you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.

Answer options

• A. single sales tax code for Brazil
• B. ledger posting group
• C. single sales tax code for the United States
• D. taxation rule
• E. tax code for each legal entity

Correct answer: B, E

Explanation

Configuring the ledger posting group (B) is essential for managing how transactions are recorded in the ledger for different legal entities. Additionally, setting up a tax code for each legal entity (E) is necessary to ensure compliance with local tax regulations in the regions where the company operates, while the other options do not directly address the tracking of Use Tax across multiple jurisdictions.