> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fusioncore.us/llms.txt
> Use this file to discover all available pages before exploring further.

# Tax Products

> Create a tax product in fusionCore to define the percentage or flat-rate tax the engine applies to taxable items during Order Entry.

## What a Tax Product Is

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.

## Percentage Versus Flat-Rate Tax

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. |

<Warning>
  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.
</Warning>

## Tax Rules (Conditions)

To apply a tax only in certain cases — for example, only when the order's **Billing Country**, **State**, or **City** matches — attach a [Condition](/end-user-guides/products/conditions/index) 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](/end-user-guides/products/conditions/index) for how to build one.

## Creating a Tax Product

<Steps>
  <Step title="Open the product list">
    In Salesforce, click the **App Launcher** (the nine dots at the top left) and open **Products**.

    <Frame caption="Finding Products in the App Launcher">
      <img src="https://mintcdn.com/fusionspan/4u-JGPkRA8QDMGYi/images/end-user-guides/4854644761/image-20250528-170847.png?fit=max&auto=format&n=4u-JGPkRA8QDMGYi&q=85&s=3292291ff922c418f4a218dcfa345d10" alt="The App Launcher with Products selected" width="357" height="421" data-path="images/end-user-guides/4854644761/image-20250528-170847.png" />
    </Frame>
  </Step>

  <Step title="Create a new product with the Tax record type">
    In the Products list view, click **New** and select **Tax** as the record type.

    <Frame caption="Selecting the Tax record type">
      <img src="https://mintcdn.com/fusionspan/4u-JGPkRA8QDMGYi/images/end-user-guides/4854644761/image-20250528-174607.png?fit=max&auto=format&n=4u-JGPkRA8QDMGYi&q=85&s=d4c2db05008a150afa865fac4257529f" alt="The record type selection dialog with Tax selected" width="1315" height="525" data-path="images/end-user-guides/4854644761/image-20250528-174607.png" />
    </Frame>
  </Step>

  <Step title="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.                                                                                                                      |
  </Step>

  <Step title="Save the tax product">
    Click **Save**.

    <Note>
      Create each tax product under the correct Business Unit. A tax product only applies to taxable items in the same Business Unit.
    </Note>
  </Step>
</Steps>

## Limitations and Common Pitfalls

* **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.