A tax product is a Product (Product2) record that the tax engine uses to calculate tax on taxable items. At sale time, the engine identifies a tax product by the Is Tax (Is_Tax__c) checkbox being checked — not by its category. The product must also be active and have a price in the order’s currency.You create the record under the Tax category (the FC_Tax record type), which is the UI bucket for tax products. The Tax category alone does not make a record a tax product — you must also check Is Tax (Is_Tax__c) on the record.A tax product applies to a taxable item only when both belong to the same Business Unit (Business_Unit__c). For example, a tax product in the Society of Innovators Business Unit only applies to taxable items in that same Business Unit.
A tax product charges tax in one of two ways, depending on how you set its rate.
Tax type
How to configure
How it is charged
Percentage
Set Tax Rate (Tax_Rate__c) to the percent value — for example, 5 for 5%.
When Tax_Rate__c is greater than 0, tax is Tax_Rate__c / 100 × unit price.
Flat
Leave Tax Rate (Tax_Rate__c) at 0 and set the tax product’s standard price (its Standard Price Book entry).
The standard price is charged as a flat tax amount. There is no separate flat-amount field.
Use one method per tax product. For a percentage tax, set Tax_Rate__c and leave the standard price at 0. For a flat tax, leave Tax_Rate__c at 0 and set the standard price. A flat-rate tax product must have a Standard Price Book entry in the order’s currency.
To apply a tax only in certain cases — for example, only when the order’s Billing Country, State, or City matches — attach a Condition to the tax product through the Condition (Condition__c) lookup. The condition’s Condition Lines reference the order’s billing fields.Only Simple conditions (the FC_Simple record type) are supported for tax. Apex conditions are rejected. See Conditions for how to build one.
In Salesforce, click the App Launcher (the nine dots at the top left) and open Products.
Finding Products in the App Launcher
2
Create a new product with the Tax record type
In the Products list view, click New and select Tax as the record type.
Selecting the Tax record type
3
Fill out the tax product fields
Fill out the tax product fields:
Field
Notes
Product Name
Internal and UI-facing name.
Is Active (IsActive)
Required. The tax product must be active to be used.
Is Tax (Is_Tax__c)
Identifies the record as a tax product. Must be checked.
Tax Rate (Tax_Rate__c)
The percentage charged — 5 means a 5% tax. Set to 0 if charging a flat-rate tax.
Standard Price
The flat amount charged for the tax (the Standard Price Book entry). Never set both Tax Rate and Standard Price. Leave at 0 if using a percentage tax rate.
Condition (Condition__c)
Lookup to a Simple Condition that limits when the tax applies. Do not fill this out when creating a default tax product.
Business Unit (Business_Unit__c)
Required. The tax product only applies to taxable items in this same Business Unit.
Revenue GL Account
Used for financial tracking.
A/R Account
Lookup to the A/R account record.
Used by fusionCore
Enables inclusion in fusionCore logic.
4
Save the tax product
Click Save.
Create each tax product under the correct Business Unit. A tax product only applies to taxable items in the same Business Unit.
Business Unit must match. A tax product only applies to a taxable product in the same Business Unit (Business_Unit__c).
Only Simple conditions are supported. A tax product’s condition must be a Simple condition (FC_Simple); Apex conditions are rejected.
Percentage and flat are mutually exclusive. A non-zero Tax Rate (Tax_Rate__c) makes the tax a percentage; leaving it at zero uses the tax product’s standard price as a flat amount, which requires a standard Price Book entry in the order’s currency.
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