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Siebel Product Administration Guide > Managing Products with Components > Controlling How Products with Components Are TaxedThe components of products with components can have different tax rates. For example, a company may sell a product with components called Concrete Services. As its components, this product may have the cost of concrete, the cost of using a truck to pour concrete, the cost of labor, and the cost of engineering services. In some jurisdictions, these components may be taxed at different rates. You can control how tax is computed by setting the Tax Subcomponent flag. To tax the components individually, set the Tax Subcomponent flag on the root of the product with components or bundle. If you do not set the Tax Subcomponent flag, the tax is computed on the total price of the product with components or bundle. If one of the components is itself a product with components, you can set the Tax Subcomponent flag on the component. This causes the tax for that component to be the sum of the tax computations on the components of that component. Note the following points about taxing components:
The tax will be calculated accurately if you apply volume discounts or bundling discounts to the product. These discounts are applied at the component level, so the tax on each subcomponent will be adjusted to reflect the discount. CAUTION: You cannot use simple bundles for pricing when tax rates of components are different. To tax the components of a product with components or bundle |
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