We sell and/or purchase items from couple of states in the US (at least not a lot for now though that may change and we may end up selling in many states). we are not in retail business. I am setting up the Tax module in D365.
Do I need to create ledger accounts (state tax payable) per state/county/city etc., . we were thinking of creating just a single account (instead of one for each state for e.g CA tax payable). just one account for state tax payable, similarly for city, county, use tax etc.,
How about for tax authorities? It looks like we have to create all tax authorities (those states/region we do business) which would mean we have to create vendor account for each authority - Is this the case? Probably the case with settlement periods as well I suppose as it might pertain to state/city/country/region. typically the tax are paid on quarterly if so, can we just setup one settlement period for e.g quarterly state settlement period?
Question - We use an external tax consultant to pay the quarterly taxes. If that being the case, could we need to setup tax authorities/settlement periods etc.,?
appreciate your inputs.