How To Create A Tax Product


A Tax Product is a rate that is added either to individual products or on the invoice. This product cannot be provisioned under an account package product or added to a package.



Step 1. Create a new product.

Go through the motion of creating a new product by referring to the How To Create A New Product section. When asked to specify the Rating Method, select Tax.


Step 2. Specify the rate details

You have the ability to skip defining the default rate for the product for later definition when provisioning to a customer or when it is added to a package as a package product. For the purpose of this process, we will define the default rate for the product that you created.

Click the Specify Default Rate checkbox and enter the rate corresponding to the currency code that the product will be used for.

Refer to table 1 below for the field definitions to help you populate the rate details.



Click Submit to save the changes.


Terms Defined 

Table 1
Field Name Description
Tax Type

Indicates the manner of adding the tax product will be applied. The amount on which the tax will be applied will also be influenced by the Tax Application field. Available options are:

  • Percentage: The percentage of the amount will be taken.
  • Formula: Using the platform formula language, a complex tax formula can be implemented.
  • Fixed or Flat Fee: A flat fee will be added to the invoice regardless of the amount.
Formula Value

Available when the Tax Type is set to Formula. The formula for computing the tax cost when this tax product is invoked can be entered here using the platform formula language. The syntax can be checked before saving by clicking the Check Syntax button can be used so that errors can be corrected before saving the tax product.

Tax Application

Indicates where the amount will be taken from and will be used for tax computation. Available options are:

  • Per Invoice: Amount to be computed for tax will be taken from the total invoice amount.
  • Per Product: Amount to be computed for tax will be taken from the products in the invoice.
Applicable To

Allows the selection on where the tax products applies when provisioned. Available options are:

  • All Products: Tax is applied to all products whenever they land on the invoice.
  • Filtered Products: Tax is applied to a subset of products when they land on the invoice and meet the criteria defined in the Filtered Products table.
Filtered Products

Allows the definition of rules on which products/charges will have the tax rate applied. The object reference model can be used here and the base entity used is Invoice Detail. This means that as long as there is a relationship via LOOKUP fields or Parent/Child entities, the filter can be used with their fields.

Filtered Products Join Logic

Indicates the join logic of the filter rules defined in the Filtered Products table. The number corresponding to the rows as they are listed in the table can be used. For example, consider the following screenshot:

The tax rate will be applied for any of the following: 

  1. The product charge has "TAX_ME" in the name when the customer is from the US.
  2. The customer is from Australia regardless of the product charge.
Tiered Rate Type

Only applicable for Tiered Pricing, this allows for choosing the behavior of how usage data is handled for tiered rates. Available choices are:

  • Bulk: Applies the rate of the final tier to all the usage units.
  • Incremental: Applies the rate for usage allocated to each tier respectively
Tier Calculation Level

Only applicable for tiered pricing, this indicate the aggregate level of the tiered rates. Available options are:

  • Package: Calculates aggregation within the package only and if multiple packages, instances of the product within each contribute to will be considered.
  • Product: Calculates aggregation at the usage that belongs to the same product instance.
  • Account: Calculates aggregation at individual levels of hierarchy if account is part of hierarchy.
  • Invoice: Calculates aggregation for all instances of the product on the invoice.
Split Usage Crossing Bands When dealing with large chunks of data, enabling this option will allow the splitting of usage data across bands. Disabling the option will have the large chunk rated against the lower band.
Pricing Type

Indicates the type of pricing that the product will use. Available options are:

  • Standard Pricing: Specify the rate in currencies configured on the platform. This is the basic per usage unit charge.
  • Tiered Pricing: Specify tiered rates. This enables the flexibility of indicating different rates based on the number of usage units.

Pricing rate of the product.

Min Charge

Minimum charge when this product is charged to the customer. If the computed rate multiplied by the # of consumed units is less than the minimum charge, the minimum charge will be reflected on the customer's invoice.

 Related Topics

Have more questions? Submit a request


Powered by Zendesk