Discover the Advantages of the Universal Tax Rate API for
Harness the power of streamlined integration with third-party tax solutions through the universal tax rate API, now generally available in Microsoft Dynamics 365 Finance, Supply Chain Management and project management and accounting functionality of Project Operations. This advancement eases the complexities of managing multiple and frequently changed tax rates and rules across diverse tax jurisdictions for businesses worldwide.
Navigating the Challenges of Tax Calculation
The tax calculation functionality of Dynamics 365 offers highly flexible and powerful tax determination and calculation capabilities right out of the box. It allows customers to input and manage tax rates and rules to cover complex tax scenarios across Dynamics 365 Finance and Supply Chain Management applications. In some countries, tax rates and rules are inherently intricate, demanding constant vigilance and updates to comply with constant changes by local tax authorities across multiple jurisdictions. This complexity escalates for businesses operating internationally, necessitating the maintenance of accurate tax rates and rules for each location. Traditionally, this process has had a high potential for errors, requiring extensive manual data management and exposing businesses to risks of non-compliance, penalties, and reputational harm.
Recognizing these challenges, many businesses opt for third-party tax solutions to automate and simplify their tax calculation processes. However, integrating these solutions with Microsoft Dynamics 365 Finance and Supply Chain Management applications could be a complex endeavor, burdened by the need for deep understanding of the ERP systems data models and business logic, along with ongoing maintenance to ensure alignment with release updates.
Empowering Businesses with the Universal Tax Rate API
In response to these challenges, we are releasing the universal tax rate API as a standardized solution facilitating communication between Microsoft Dynamics 365 Finance and Supply Chain Management applications, and third-party tax solution providers. This API offers a consistent, reliable interface for data exchange, eliminating the need for extensive customization and simplifying the integration process.
Benefits of the Universal Tax Rate API
The universal tax rate API drives simplification and efficiency for users of Dynamics 365 Finance and Supply Chain Management applications. By offering integration with third-party tax solutions, this innovative API dispels the complexities traditionally associated with managing tax rates and rules, enabling businesses to focus on growth and scalability. Harnessing the universal tax rate API enhances compliance and operational efficiency, through delivering:
- Simplified Integration: Connect with supported third-party tax solution providers, leveraging their expertise without the need for expensive customizations.
- Standardized Communication: Utilize a predefined set of APIs for various tax operations, including address validation, tax calculation, and transaction posting, all employing the JSON format for efficient data exchange.
- Enhanced Compliance and Efficiency: Keep your tax calculations accurate and up to date, minimizing risks of non-compliance and improving operational efficiency.
- Comprehensive Dynamics 365 coverage: Take advantage of the wide coverage of tax transactions within Dynamics 365 Finance and Supply Chain Management applications, as well as within other Dynamics 365 applications that can be available through the universal tax rate API later.
Utilizing the Universal Tax Rate API
The process of employing the API is straightforward. Upon transaction creation or update, the system identifies taxable transactions configured for external tax calculation. It then prepares and sends a data payload to the chosen tax solution provider via the API. The provider calculates the tax and returns the results, which are then validated and recorded in Dynamics 365 Finance and Supply Chain Management applications for audit and reporting.
Get started today
To begin leveraging this powerful feature, select a compatible third-party tax solution provider that aligns with your business needs from the list on Microsoft Learn. Follow the detailed guide provided in the Connect to an external tax solution provider via the Universal Tax Rate API learning path on Microsoft Learn, ensuring a smooth setup and efficient use of the universal tax rate API in your organization.
Embrace the universal tax rate API to transform your tax calculation process, focusing on compliance, efficiency, and scalability within Microsoft Dynamics 365 Finance and Supply Chain Management applications.
Resources
- Universal tax rate API – Finance | Dynamics 365 | Microsoft Learn
- TechTalk Recoding
- Tax solution provider’s connectors available at general availability (GA):
The post Discover the Advantages of the Universal Tax Rate API for Simplified Tax Calculations in Microsoft Dynamics 365 Finance and Supply Chain Management applications appeared first on Microsoft Dynamics 365 Blog.