# How to code a vendor invoice with mixed GST lines in Dynamics 365 Finance

In Dynamics 365 Finance, set the sales tax code on each line of the vendor invoice. Use the GST code for taxable lines and the GST-free code for others, then check the GST total matches the invoice.

A mixed GST bill has some lines with GST and some without, such as taxable goods plus GST-free items. Each line needs its own GST code.

## Before you start

- Sales tax set up for Australia

## The Dynamics 365 Finance way

Where to find it: Invoice journal > Sales tax and sales tax groups

1. The sales tax group defaults from the vendor and the item sales tax group defaults from the offset main account.
2. Open Sales tax on the line to see tax per sales tax code.
3. On the Adjustment tab change the amount per code if the supplier invoice differs.
4. Use Reset actual from calculated amounts to undo.

## Good to know in Dynamics 365 Finance

- Reporting codes in the BAS feature place each tax code in the right GST box.

## The Pulsify way

1. Forward the supplier's invoice to your Pulsify address or upload it. Pulsify reads every line and finds the vendor in Dynamics 365 Finance.
2. Pulsify works out the GST rate for each line from what is printed and picks the matching sales tax code in Dynamics 365 Finance.
3. Check any line where the invoice is unclear. Change the sales tax code and approve.
4. The vendor invoice is created in Dynamics 365 Finance with the GST on each line.

Pulsify connects to Dynamics 365 Finance. We set up the connection for you.

What Pulsify does not do here:

- If the invoice does not show GST by line, Pulsify uses past bills for that vendor. Check those lines yourself.

## Common mistakes

- Leaving a wrong sales tax group on the vendor, so every line defaults to the wrong code.
- Typing over a tax amount to match the supplier invoice and forgetting that Reset actual from calculated amounts undoes it.

## Common questions

### Where does the sales tax group on a line come from?

The sales tax group defaults from the vendor and the item sales tax group defaults from the offset main account. Open Sales tax on the line to see tax per sales tax code.

### What if the GST on the supplier invoice differs from the calculated amount?

On the Adjustment tab of Sales tax, change the amount per code. Use Reset actual from calculated amounts to undo it.

### How do tax codes reach the BAS?

Reporting codes in the BAS feature place each tax code in the right GST box. Sales tax needs to be set up for Australia first.

### Does Pulsify code GST by line?

Yes. Pulsify sets a GST code on each line from the rate printed on that line and matches it to a tax code in your ledger.

## Sources

- https://learn.microsoft.com/en-us/dynamics365/finance/accounts-payable/tasks/record-vendor-invoice-invoice-journal
- https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/tasks/calculate-adjust-sales-tax-vendor-invoice
- https://learn.microsoft.com/en-us/dynamics365/finance/localizations/australia/apac-aus-business-activity-statement

Source: https://www.pulsify.tech/how-to/code-a-bill-with-mixed-gst-lines-in-dynamics-365-finance/ (last checked 2026-10-19)