Create or Change a Tax Class

You create tax classes that can be associated with product offers. For a given product offer, pricing administrators associate tax classes with each price component application. After tax classes are committed to the pricing repository, tax classes appear in My MATRIXX in the Tax/GST tab of the product offer definition.

Before you begin

You must have the Domain role of Configuration User to create a tax class.

Obtain the names of the tax classifications used by the service provider's billing systems if you want to name the external IDs of the tax classes accordingly.

Procedure

  1. In Tax Classes, click New Tax Class.
  2. In Name, enter a descriptive name for the tax class.
    The name is displayed in the Product Offer Tax/GST tab in My MATRIXX. Make the name descriptive so that it identifies the MATRIXX Data Container (MDC) containing the field (pricing administrators will need to know the MDC containing the field when they create pricing plans). The name is saved to the Event Detail Record (EDR) and can be used to map the information to a tax code in a third-party system.
  3. In External ID, enter a unique identifier.
    This value is saved to the EDR.
  4. Add either a rate percentage in the Rate (%) field or add a fixed tax value in the Fixed Tax field. Once you enter a value in either Rate (%) or Fixed Tax, the other field is disabled.
    • In Rate (%), enter the tax-class rate. Accepted values are a numeric value from 0 to 100 that represents the percentage of the charge. The value is copied into applied offer records in EDRs.
    • In Fixed Tax, enter the fixed tax numeric value.
  5. (Optional) Select Is Paid to specify that the tax has already been paid.
  6. (Optional) In Tax Code, enter a string to identify an additional tax code.
  7. Click Create.
  8. In Start Date/Time, optionally enter the start date and time.
  9. In Tax Recognition Type, specify how taxes are to be reported in general ledger (GL) postings. This controls when the tax is recognized in the general ledger. The options are:
    • Always Immediate — Recognize the tax immediately (regardless of the revenue recognition type for the charge to which the tax is being applied).
    • Same as Charge — Recognize the tax in the same way as set by the revenue recognition type for the charge to which the tax is being applied.
    MATRIXX Charging Application sets the recognition type in the GL information records in EDRs.
  10. Click Save to create the tax class.
  11. To change a tax class, click Tax Classes in the breadcrumbs, and click the tax class name or click Edit the selected object and make the necessary changes.
  12. Click Save.