Billing Tax Amounts

In Billing and Revenue Management, tax for an entire contract is billed with the first milestone. This tax amount is included on a separate invoice from the rest of the billed amount. Therefore, when you first run Product Invoicing (BR151), two invoices are created—one for the billed amount and one for the tax amount. When you subsequently run Product Invoicing (BR151) for other milestones, only one invoice will be created for the billed amount. These subsequent invoices will not include a tax amount.

Because all tax is included on a single invoice for the contract, cancelling invoices can only be done at the contract level. You can not cancel a single invoice for a contract, because the tax would not be included properly in the cancellation.