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Managing Tax on Debit Notes
Salesforce Billing calls your external tax engine to calculate tax for your debit note lines. First, estimate taxes on your debit notes. After you estimate the taxes, you can apply them to your debit notes. (Salesforce Billing Managed Package)
Required Editions
| Available in: Salesforce Billing Winter ’18 and later. |
By default, Salesforce Billing does not calculate tax for a debit note line when you save it. This standard is useful if you plan on entering a tax amount on your own or you don’t want to call a tax engine. To manage debit note line tax, you can apply, estimate, or cancel tax by clicking the appropriate button on the debit note record. Before you choose a tax action, review the following debit note line tax fields.
- Effective Tax Date
- Provide a date for when Salesforce Billing should should apply tax to this debit note line. Salesforce Billing sends this date to your tax engine during tax calculation.
- Calculate Tax?
- When you estimate or apply tax on your debit note, Salesforce Billing evaluates whether Calculate Tax? is selected on each debit note line. It then sends a call to calculate tax for each debit note line with an effective tax date and
- Tax Address fields
- You can enter values for the street, city, state, country, and postal code of the address you want associated with tax calculation.
First, estimate the tax on a draft debit note using the Estimate Tax action. After you estimate the taxes, post the debit note with its estimated tax using the Apply Tax action. When you estimate or apply tax, Salesforce Billing undergoes the following steps.
- Salesforce Billing checks each debit note line for a tax address. If the debit note line does not contain a tax address, it uses the parent debit note’s address. If the parent debit note does not contain an address, Salesforce Billing does not calculate tax for the line. The tax address on your debit note or debit note line needs only one address field to apply tax.
- Salesforce Billing evaluates each debit note line where the Calculate Tax? field is selected. It then evaluates whether each of these lines has an effective tax date. If one of these lines does not have an effective tax date, Salesforce Billing stops tax calculation and updates the debit note with a tax error message.
- Salesforce Billing evaluates whether each debit note line has a tax code and tax treatment. If not, it cancels tax calculation and updates your debit note with a tax error message.
- For each debit note line, Salesforce Billing passes all tax fields to each of your tax engines. This process lets you calculate tax using more than one tax integration.
- Salesforce receives tax data from your tax engines.
- If you estimated tax, Salesforce Billing provides a value for the Tax field and updates the Total Amount (With Tax) field for each of your invoice lines. If you click estimate tax again, Salesforce Billing performs the same series of actions and overrides your current tax fields with the new values.
- If you applied tax, Salesforce Billing provides a value for the Tax field and updates the Total Amount (With Tax) field for each of your invoice lines. If your debit note is a draft, Salesforce Billing also posts it.
