Create Tax Engine Provider and Tax Engine

Create a Tax Engine Provider

Create a tax engine provider to store information about the Apex adapter class that manages communication with the tax engine.

1. From the App Launcher, find and select Tax Engine Providers.
2. Click New.
3. Enter a label and API name for the tax engine provider.
4. Select the ID of the Apex adapter that you want the tax engine provider to use.

   If you want to calculate standard tax or use your own tax engine, select the custom tax adapter that you configured.

   

   Note Select a unique Apex adapter for each tax engine provider.
5. If you have extended tax callouts, enter the API name of the custom metadata type you created.
6. Save your changes.

Create a Tax Engine

Store an instance of the tax engine provider in Salesforce by using named credentials and the provider's details. The Tax Engine record contains information that's passed to the tax engine.

1. From the App Launcher, find and select Tax Engines.
2. Click New.
3. Enter a name for the tax engine.
4. Select the tax engine provider.
5. Select the named credential that you created to authenticate the tax engine.
   A named credential isn't used when calculating standard tax. However, select the named credential that you configured because this is a required field.
6. Enter the seller code of the tax provider.
7. Select the status as Active.
   You can use only active tax engines to calculate taxes.
8. Enter the address of the tax provider.
9. To capture taxes at the header level, select Capture Taxes at Header.
   The Capture Taxes at Header checkbox appears only when the Credit and Payment Application Level is Invoice.
10. Save your changes.

Note Make sure that your tax engine supports tax calculation for credits used for negative invoice lines and credit memos. If the tax engine doesn’t support credits, Billing can’t process negative invoice lines and invoice void operations fail.

After you create the Tax Engine record, select the type as Revenue Cloud Tax Extension. If the Type field is empty, Revenue Cloud Tax Extension is considered as the value.

Tax Totals at the Line and Header Levels

Understand how Billing applies line-level and header-level tax amounts during balance calculation.

When Capture Taxes at Header Level is turned on:

• Billing stores the consolidated tax amount returned by your tax engine in the Total Taxes Captured at Header field on invoices and credit memos.
• Invoice balance calculations use the header tax amount instead of the sum of line-level taxes.
• Billing retains line-level tax details as an aggregated total of all invoice lines for reporting or reconciliation when provided by the tax adaptor.
• For credit memos created from invoices based on the header tax, the credit memo records the corresponding header tax amount. The Total Taxes Captured at Header field stores the tax amount returned for the credit memo calculation.

Billing applies line-level tax instead of header-level tax in these situations:

• The header tax amount is null or missing.
• The tax engine fails to return a header tax amount.
• The invoice is created before header tax is enabled.
• The Credit and Payment Application Level is changed from Invoice to Invoice Line after invoice creation.
• The users manually edit tax amounts while the invoice is in draft status.
• A tax engine timeout occurs during header tax calculation.
• A network connectivity issue interrupts tax service calls.
• The currency conversion fails for the header tax amount.
• Exchange rate calculation errors affect the header tax amount.
• The header tax format in the API request is invalid.
• An API version compatibility issue prevents header tax processing.