Calculation of Taxation Thresholds
When taxation thresholds are applied at the account's bill level, it means that the system must calculate taxes for each of the account's service agreements, then sum these tax amounts and apply any applicable rounding rules. This accumulated tax amount is compared to a threshold amount and if the accumulated tax amount is less than the threshold amount, then taxes should not be applied to the customer's bill. To ensure the accumulated tax amount is accurate, all service agreements for an account whose tax amounts should be taken into consideration when comparing to the specified threshold should be billed together and the threshold comparison should take place after the bill segments have been generated. In addition, all bill segments whose tax amounts should be taken into consideration when comparing to the specified threshold must be for the same bill period.
Note: 
Bill segments from different periods may not appear on the same bill. If a bill segment is canceled, all bill segments associated with that bill must be canceled and re-billed together. You cannot re-bill the bill segment on a bill for a different period.
An algorithm type is supplied with the base package that checks for taxation thresholds at bill completion time. The base bill completion algorithm type accumulates identified tax calc line amounts (accomplished using a bill segment calc line characteristic), and compares this to a specified threshold amount to determine if taxes apply for the account. If taxes do not apply, it sets a bill characteristic indicating this and regenerates the bill segment. Refer to the C1-CPBC-TAXT algorithm type for more information on how this type of algorithm operates.
Note: 
Calculated adjustments are included in the evaluation against taxation thresholds. Adjustments that use a rate to calculate the adjustment amount may be included in the taxation threshold evaluation if their rate's components are set up to do so. The base algorithm C1-CPBC-TAXT looks at adjustments that are about to be swept onto the bill and, if applicable, includes them in the calculation.
The calculation rule(s) that calculate taxes make use of calculation rule eligibility criteria to ensure that taxes are only computed if the bill does not have the characteristic indicating that taxes are not applicable. Note that during the initial generation of each bill segment, the characteristic will not exist and taxes will be applied. This means that if you look at a bill before it is complete, taxes may not be accurately reflected.