Purpose
A dynamic tax key is used to automatically take time-dependent tax changes into account.
Instead of manually maintaining several tax keys, a dynamic key refers to other tax keys - depending on the service or posting date.
This saves maintenance work and ensures that postings are always made with the correct tax rate (e.g. in the case of temporary VAT reductions).
How it works
A dynamic tax key refers to other tax keys that are defined in the tax matrix. There are:
a standard reference (valid if no specific period applies),
and optional period-dependent references, which have priority.
Assignment by date fields in the posting
If a posting has several date fields, the following priority applies (descending):
Service date to
Service date from
Posting date
Example
A booking with the dynamic key UVoll has:
Service date from: 10.10.2019
Service date until: 09.10.2020
Posting date: 01.11.2020
The system checks whether there is a different definition for the date 09.10.2020.
UVoll refers to U16 (= VAT 16 %) for this day.
This means that the posting is automatically posted with the correct tax key without you having to adjust the key manually.
Restrictions
Dynamic tax keys are not posted themselves.
They only serve as a reference to other keys.Therefore, you cannot store percentage rates or account assignments for them.
They cannot be assigned in the tax matrix .
Step-by-step instructions
Create a new control key
Open Edit tax key and click on New.
Assign a unique name (e.g. UVoll).
Activate and call up dynamics
Mark the key as dynamic by clicking in the "Dynamic control key" column and save.
You can now call up the selected key via Edit dynamic control key.
Set default reference
Specify which control key is used if no period applies.
Define references
Optionally store time-dependent validities (from/to).
Specify which control key the dynamic key refers to in these time periods.
Save
Save the definition.
The dynamic key can now be used in postings.
Result
Dynamic tax keys automatically select the appropriate tax key, depending on the service or posting date.
This means that tax postings always remain correct, even with changing tax rates (e.g. 19% → 16%).
Tags
#tax key #dynamic tax key #tax matrix #accounting #sales tax #pre-tax #tax rate change #service date