Loading
Feature Disruption - Service Cloud VoiceRead More
Feature degradation | Gmail Email delivery failureRead More
Insurance
Table of Contents
Filter by (0)Add
Select Filters

          No results
          No results
          Here are some search tips

          Check the spelling of your keywords.
          Use more general search terms.
          Select fewer filters to broaden your search.

            Search all of Salesforce Help
            Search all of Salesforce Help
            Tax Configuration

            You are here:

            1. Salesforce Help
            2. Docs
            3. Digital Insurance

            Tax Configuration

            In Agency Billing, taxes are modeled using Insurance Policy Surcharge records and are applied during billing. The billing system distributes these tax amounts across invoices based on the selected billing model, such as one-time, term-based, or milestone (hybrid) billing, while considering proration and rounding rules.

            Required Editions

            Available in: Lightning Experience
            Available in: Professional, Enterprise, and Unlimited Editions where Insurance Brokerage is enabled

            Tax billing behavior is also influenced by the Product Selling Model (PSM) associated with the surcharge or its parent. If the Product Selling Model on a tax surcharge is left blank, the system inherits the Product Selling Model from the parent policy component and prorates or applies tax accordingly. If a Product Selling Model is specified on the surcharge, it must either match the parent’s Product Selling Model or be set to One Time to support upfront tax collection in hybrid billing scenarios.

            Tax Engine Configuration

            Agency Billing uses the Insurance Tax Proration engine to apply and distribute taxes during invoice generation. For one-time billing, the full tax amount is applied at once. For term-based billing, tax is prorated across billing periods. For hybrid (milestone) billing, the engine supports both upfront tax collection and distribution of tax across milestones, depending on how billing treatments and Product Selling Models are configured on the tax surcharge and/ or its parent. For more information, see Configure Tax Calculation for Invoices.

            Tax Policies and Treatments

            Tax policies and tax treatments control how taxes participate in billing. For insurance use cases, configure a tax treatment with Is Taxable enabled and select Insurance Tax Proration as the tax engine. In hybrid billing, billing treatments on the tax surcharge determine whether tax is billed upfront (using a 100% billing treatment item aligned with the parent) or split across milestones (by inheriting the parent billing treatment). See Create Tax Policies and Treatments to know how.

            Default Tax Treatment

            You can set the pass-through Tax Treatment as the organization default. This default is applied during billing unless a different Tax Treatment is explicitly selected when configuring billing for a policy.

             
            Loading
            Salesforce Help | Article