Tax Calculations

When you use the internal tax engine, Salesforce Billing calculates tax upon order product and invoice line creation. Third-party tax engines use API tax calls for tax calculation. The tax is calculated and displayed on each order product and invoice line, which aggregate to the order and invoice tax totals respectively.

If you’re also using Salesforce CPQ, you can click Calculate Tax on your quote to calculate an initial quote tax estimate. This functionality is available only with third-party tax engines and won’t calculate using the Salesforce standard tax engine.

Quote-level and order-level tax calculation represents an estimated tax value, since these objects don’t have access to complete billing information. Invoice-level tax represents the final calculated tax value that you’ll use when billing customers.

The Salesforce Billing tax integration object acts as the bridge between your Salesforce org and your tax engine.

• Tax Calculation Results
  Salesforce Billing updates several fields following tax calculation, depending on the active stage of the billing process. (Salesforce Billing Managed Package)
• Choosing a Tax Engine
  When choosing your tax engine, consider your company’s scale, complexity, and auditing plans. Third-party integrations often provide reporting services, while the standard tax engine requires you to handle reporting in a separate process. (Salesforce Billing Managed Package)
• Configure Salesforce Billing for Tax Calculation
  To ensure tax calculation, Salesforce Billing requires values for several key fields. If you’re hitting errors when calculating tax, make sure that these fields are populated correctly. (Salesforce Billing Managed Package)
• Line-Level Tax Calculation
  Salesforce Billing calculates tax at the line level on both the order product and invoice Line objects. Each order product’s tax amount sums to the Billed Tax field on the parent order, and each invoice line’s tax amount sums to the Tax field on the parent invoice. (Salesforce Billing Managed Package)