Import Tax on Sales Orders

Specify Whether to Include Tax in Net Price

You can include or not include Tax in Net Price. In either case:

Set the FreezeTaxFlag attribute to False.

Add your ChargeComponent elements in this hierarchy:

<soap:Envelope
  <soap:Body>
    <ns1:process
      <ns1:OrchestrationOrderRequest
        <ns2:OrchestrationOrderRequestLine>
          <ns2:LineCharge>
            <ns2:ChargeComponent

Get some example payloads. Go to Technical Reference for Order Management (Doc ID 2051639.1), download the Payloads and Files attachment, then examine the examples that include or don't include tax in net price.

Include Tax in Net Price

Add details to the price adjustment. For example:

<ns2:ChargeComponent>
  <ns2:ChargeCurrencyCode>USD</ns2:ChargeCurrencyCode>
  <ns2:HeaderCurrencyCode>USD</ns2:HeaderCurrencyCode>
  <ns2:HeaderCurrencyExtendedAmount>-10</ns2:HeaderCurrencyExtendedAmount>
  <ns2:PriceElementCode>QP_DISCOUNT_ADJ</ns2:PriceElementCode>
  <ns2:SequenceNumber>2</ns2:SequenceNumber>
  <ns2:PriceElementUsageCode>PRICE_ADJUSTMENT</ns2:PriceElementUsageCode>
  <ns2:ChargeCurrencyUnitPrice>-1</ns2:ChargeCurrencyUnitPrice>
  <ns2:HeaderCurrencyUnitPrice>-1</ns2:HeaderCurrencyUnitPrice>
  <ns2:RollupFlag>false</ns2:RollupFlag>
  <ns2:SourceParentChargeComponentId></ns2:SourceParentChargeComponentId>
  <ns2:SourceChargeIdentifier>SC1</ns2:SourceChargeIdentifier>
  <ns2:SourceChargeComponentIdentifier>SCC2</ns2:SourceChargeComponentIdentifier>
  <ns2:ChargeCurrencyExtendedAmount>-10</ns2:ChargeCurrencyExtendedAmount>
</ns2:ChargeComponent>
<ns2:ChargeComponent>
<ns2:ChargeCurrencyCode>USD</ns2:ChargeCurrencyCode>
<ns2:HeaderCurrencyCode>USD</ns2:HeaderCurrencyCode>
<ns2:HeaderCurrencyExtendedAmount>10</ns2:HeaderCurrencyExtendedAmount>
<ns2:PriceElementCode>QP_INCLUSIVE_TAX</ns2:PriceElementCode>
<ns2:SequenceNumber>3</ns2:SequenceNumber>
<ns2:PriceElementUsageCode>INCLUSIVE_TAX</ns2:PriceElementUsageCode>

Note

Add the code starting right after the line that contains PriceElementCode up to and including PriceElementUsageCode>INCLUSIVE_TAX.
Set ChargeCurrencyUnitPrice to -1 (negative 1).
Set HeaderCurrencyUnitPrice to -1 (negative 1).

Add the charge component where you specify the tax to include in net price. For example:

<ns2:ChargeComponent>
  <ns2:ChargeCurrencyCode>USD</ns2:ChargeCurrencyCode>
  <ns2:HeaderCurrencyCode>USD</ns2:HeaderCurrencyCode>
  <ns2:HeaderCurrencyExtendedAmount>80</ns2:HeaderCurrencyExtendedAmount>
  <ns2:PriceElementCode>QP_NET_PRICE_EXC_INCLUSIVE_TAX</ns2:PriceElementCode>
  <ns2:SequenceNumber>5</ns2:SequenceNumber>
  <ns2:PriceElementUsageCode>NET_PRICE_TAX_EXCLUDED</ns2:PriceElementUsageCode>
  <ns2:ChargeCurrencyUnitPrice>8</ns2:ChargeCurrencyUnitPrice>
  <ns2:HeaderCurrencyUnitPrice>8</ns2:HeaderCurrencyUnitPrice>
  <ns2:RollupFlag>false</ns2:RollupFlag>
  <ns2:SourceParentChargeComponentId></ns2:SourceParentChargeComponentId>
  <ns2:SourceChargeIdentifier>SC1</ns2:SourceChargeIdentifier>
  <ns2:SourceChargeComponentIdentifier>SCC5</ns2:SourceChargeComponentIdentifier>
  <ns2:ChargeCurrencyExtendedAmount>80</ns2:ChargeCurrencyExtendedAmount>
</ns2:ChargeComponent>

Note

Set PriceElementCode to QP_NET_PRICE_EXC_INCLUSIVE_TAX.
Set PriceElementUsageCode to NET_PRICE_TAX_EXCLUDED.

Don't Include Tax in Net Price

Add a charge component that specifies the tax to include. For example:

<ns2:ChargeComponent> 
  <ns2:ChargeCurrencyCode>USD</ns2:ChargeCurrencyCode>
  <ns2:HeaderCurrencyCode>USD</ns2:HeaderCurrencyCode>
  <ns2:HeaderCurrencyExtendedAmount>10</ns2:HeaderCurrencyExtendedAmount>
  <ns2:PriceElementCode>QP_EXCLUSIVE_TAX</ns2:PriceElementCode>
  <ns2:SequenceNumber>4</ns2:SequenceNumber>
  <ns2:PriceElementUsageCode>EXCLUSIVE_TAX</ns2:PriceElementUsageCode> 
  <ns2:ChargeCurrencyUnitPrice>1</ns2:ChargeCurrencyUnitPrice>
  <ns2:HeaderCurrencyUnitPrice>1</ns2:HeaderCurrencyUnitPrice>
  <ns2:RollupFlag>false</ns2:RollupFlag>
  <ns2:SourceParentChargeComponentId></ns2:SourceParentChargeComponentId>
  <ns2:SourceChargeIdentifier>SC1</ns2:SourceChargeIdentifier>
  <ns2:SourceChargeComponentIdentifier>SCC4</ns2:SourceChargeComponentIdentifier>
  <ns2:ChargeCurrencyExtendedAmount>10</ns2:ChargeCurrencyExtendedAmount>
</ns2:ChargeComponent>

Note

Set PriceElementCode to QP_EXCLUSIVE_TAX.
Set PriceElementUsageCode to EXCLUSIVE_TAX.

Add the charge component where you specify the tax to include in net price. For example:

<ns2:ChargeComponent>
  <ns2:ChargeCurrencyCode>USD</ns2:ChargeCurrencyCode>
  <ns2:HeaderCurrencyCode>USD</ns2:HeaderCurrencyCode>  
  <ns2:HeaderCurrencyExtendedAmount>100</ns2:HeaderCurrencyExtendedAmount>
  <ns2:PriceElementCode>QP_NET_PRICE_PLUS_TAX</ns2:PriceElementCode>
  <ns2:SequenceNumber>5</ns2:SequenceNumber>
  <ns2:PriceElementUsageCode>NET_PRICE_PLUS_TAX</ns2:PriceElementUsageCode>
  <ns2:ChargeCurrencyUnitPrice>10</ns2:ChargeCurrencyUnitPrice>
  <ns2:HeaderCurrencyUnitPrice>10</ns2:HeaderCurrencyUnitPrice>
  <ns2:RollupFlag>false</ns2:RollupFlag>
  <ns2:SourceParentChargeComponentId></ns2:SourceParentChargeComponentId>
  <ns2:SourceChargeIdentifier>SC1</ns2:SourceChargeIdentifier>
  <ns2:SourceChargeComponentIdentifier>SCC5</ns2:SourceChargeComponentIdentifier>
  <ns2:ChargeCurrencyExtendedAmount>100</ns2:ChargeCurrencyExtendedAmount>
<ns2:ChargeComponent>

Note

Set PriceElementCode to QP_NET_PRICE_PLUS_TAX.
Set PriceElementUsageCode to NET_PRICE_PLUS_TAX.

How Order Management Displays Your Tax

How You Include Tax	Values in Price Breakdown
Include Tax in Net Price	Pay Now is equal to Net Price. Total Tax includes only the inclusive tax.
Don't Include Tax in Net Price	Pay Now equals tax plus Net Price. Total Tax includes only the exclusive tax.

How You Include Tax

Values in Price Breakdown

Include Tax in Net Price

Pay Now is equal to Net Price.

Total Tax includes only the inclusive tax.

Don't Include Tax in Net Price

Pay Now equals tax plus Net Price.

Total Tax includes only the exclusive tax.

How Order Management Integrates Tax with Accounts Receivable

If you freeze price or tax, then Pricing Administration doesn't calculate tax, and Order Management uses the price that you import to display tax on the sales order.
Order Management creates a tax estimate. It doesn't create the actual tax that's charged in Accounts Receivable.
Order Management doesn't send tax values to Accounts Receivable because conditions that affect tax during fulfillment might change. Assume you set the Warehouse attribute to Los Angeles on a sales order, then click Submit. Assume fulfillment depletes the inventory in Los Angeles before it fulfills the sales order, so fulfillment decides to ship from Denver instead of Los Angeles so it can meet the requested ship date. The tax rate in Los Angeles might be different than the tax rate in Denver. So, Accounts Receivable uses the actual fulfillment conditions to calculate its own tax regardless of whether you freeze price or tax. For details, see Change Your Tax Rate.