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Setting Up Tax Calculations

Tax calculations can either be done manually, or through the Tax Calculator business service, which makes a call to a third-party vendor.

Entering Taxes Manually

Users can enter tax information directly in the tax fields, in the Payments view in an order.

In the Payments form, the user will either enter the tax rate or will select a tax exemption code and tax exemption ID, if the customer indicates they are exempt from taxes.

If users enter tax information manually, the only required setup is to define the appropriate tax exempt codes in the list of values.

In the List of Values Administration view of the Application Administration screen, tax exempt codes are listed in records where the Type field has the value GLOBAL_TAX_EXEMPTION.

For information about changing lists of values, see Applications Administration Guide.

Using a Third-Party System to Calculate Taxes

You use an external third-party system to calculate taxes on quotes and orders. The Calculate Taxes step calls the Tax Calculator business service, which makes a call to the third-party application.

When using a third-party system, the end user should make sure that the ship-to addresses are correct and then click the Calculate Taxes button on the Line Items Totals form. The amount of the tax will appear on the Total form, and the tax rate will appear in the Payments form. Because ship-to addresses can vary for different line items in an order, the tax rate can also vary for different line items. (For details on the user's experience of this feature, see Calculating Taxes.)

NOTE:  For customizable products, taxes may be calculated either on the individual components, or on the extended price for the customizable product. The method used is determined by the Tax Subcomponent check box in the Product Administration screen. For more information, see Product Administration Guide.

Tax exempt information can be entered in your Siebel application on the Payments view tab in a quote or order.

However, customers can also file their tax exempt information with a tax provider for validation. When the third-party tax system contains tax-exempt information, that information is updated when the user clicks Calculate Taxes.

If you want to hide the tax-exempt fields from users, you must customize the Payments form in Siebel Tools. There are three tax exempt fields: Tax Exempt Flag, Tax Exempt Reason, and Tax Exempt Certification ID.

For details about setting up and using a third-party taxation application, see Siebel eSales Administration Guide.


 Siebel Order Management Guide 
 Published: 18 April 2003