Points-based orders can be converted to monetary currency so that Avalara and Vertex tax processors can calculate taxes. Currency conversion is enabled at the price group level. When configured, the shipping and commerce line item amounts are converted to currency before being sent to Avalara and Vertex systems.
There are two different types of conversion for Avalara and Vertex processors. Depending on the configuration made in the price list group, an administrator can configure the price list group to skip the tax call or make the tax call without performing any currency conversions.
If tax is disabled in the price list group, the tax is removed from the total order amount. If tax is enabled and the price list group is configured for currency conversion, the secondaryCurrencyCode and ExchangeRate are added to the order.
For details additional about creating and activating price groups, see Configure Price Groups in Using Oracle Commerce Cloud for additional information on working with price list groups.
For information on configuring tax processor integrations, refer to the Configure Tax Processing section in Using Oracle Commerce Cloud and Configure Tax Processors in Extending Oracle Commerce Cloud.
The price of the points-based order is converted to the secondary monetary currency for the site, using the corresponding exchange rate, as described in the Understand currency exchange rates section. The value that the tax processor calculates is converted from monetary currency back into points using the same exchange rate.
If you are using the External Tax Calculation webhook to integrate with an external tax processor, the tax call is made with or without currency conversion depending on how price list group has been configured. This allows the external tax processor to use the correct logic.
Once the conversion is complete, the exchange rate is recorded and used for subsequent operations, such as returns and exchanges. Once the tax value in monetary currency is returned by the tax processor, it is also stored so that it may be passed to order management systems as part of a Submit and Return Request webhook.
