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This document outlines the process of configuring taxation in EngageIP and how taxes are applied to accounts and services. This content focuses on a native/local tax configuration (taxes applied by EngageIP without third party tax software) but the concepts and configuration details below are not exclusive to a local taxation scheme. Additional vendor specific/regional specific tax configuration content is also available in this knowledge base, links to this content can be found below:
How Taxes are Calculated
Taxes in EngageIP are calculated on each transaction and then summed up for invoicing purposes. If you take an invoice, look at the total amount and attempt to multiply that total by the tax percentage you will usually notice a one or two cent difference due to rounding. This is the expected behavior and does not mean tax calculations are incorrect. Since calculations are done per transaction when the transaction is added rounding is performed at that time and then summed up which then reflects on the invoice.
Per transaction is also how Billsoft currently handles taxation and nationwide companies such as Bell Canada.
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Note: the QST rate above is rounded to four decimal places in EngageIP due a tax precision value of '4' being set on the Configuration page
To apply the tax rates to accounts in Quebec the rates must be added to a tax code, the tax code example below shows the attached rates in the Tax Rate Details section.
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For third party tax integrations (AvaTax, SureTax): historical taxation for each transaction is stored in a TaxLog table in the EngageIP database. This table includes jurisdiction details (pcodes) used at the time of taxation for any transactions or usage billing
The Audit Log Report will capture any changes to addresses or pcodes in the objects 'ContactPointAddress' & 'ContactPointAddressAttributeJurisdictionCode'. Ensure these objects are enabled (User Audit=yes) if you need to reference the historical values of addresses
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