Considerations for Configuring Inclusive Taxes
Calculating taxes as inclusive of the item line amount is primarily driven by the tax legislation and the business relationship between the transacting parties. Configure your tax setup accordingly to capture the inclusiveness as per the taxes and the parties involved within a transaction.
The following table provides some of the key inclusiveness requirements and the corresponding setup:
Inclusiveness Requirement |
Setup Based on the Tax Inclusiveness Processing Hierarchy |
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Always apply to specific tax rates regardless of the party setup |
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Apply to specific taxes and all associated tax rates originating from certain tax jurisdictions for certain transacting third-party sites |
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Apply to specific taxes and all associated tax rates regardless of the tax jurisdiction for certain transacting third-party sites |
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Apply to all taxes defined for a tax regime for certain transacting third-party sites |
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Apply to all taxes and all tax regimes for certain transacting third-party sites |
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Apply to specific taxes and all associated tax rates originating from certain tax jurisdictions for all transacting third-party sites defined for a party |
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Apply to specific taxes and all associated tax rates regardless of the tax jurisdiction for all transacting third-party sites defined for a party |
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Apply to all taxes defined for a tax regime for all transacting third-party sites defined for a party |
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Apply to all taxes and all tax regimes for all transacting third-party sites defined for a party |
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Apply to certain taxes originating from certain tax jurisdictions for all transacting third parties originating from a specific business unit or legal entity |
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Apply to certain taxes regardless of the tax jurisdiction for all transacting third parties originating from a specific business unit or legal entity |
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Apply to all taxes defined for a tax regime for all transacting third parties originating from a specific business unit or legal entity |
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Apply to all taxes and all tax regimes for all transacting third parties originating from a specific business unit or legal entity |
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Apply to certain taxes for all transacting third parties originating from any business unit or legal entity |
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