Shared Product Not Taxable in Child Entity

Why is the shared product not taxable in the child entity?

The Taxable setting is managed independently at the entity level.

When a product is shared from a parent entity, changes made later to the product's Taxable setting in the parent entity are not automatically inherited by child entities.

As a result, a product can be taxable in the parent entity but not taxable in a child entity.

For example:

• Subscription: S-13743
• Product: P-00634 (Iconik Professional)

If the product is not marked as taxable in the child entity, invoices generated for that product may not include the expected tax amount.

How do I update the Taxable setting?

To update the Taxable setting for an existing product in a child entity:

1. Export the products from the child entity.
2. Open the exported product file.
3. Set the Taxable field to Yes for the applicable products.
4. Save the updated product file.
5. Re-import the product file into the child entity.
6. Verify that the product is marked as Taxable.

Will the change apply to existing invoices?

No. Updating the Taxable setting affects future invoice generation. Invoices that have already been generated are not automatically updated when the product configuration changes.

What happens after the product is marked as taxable?

Once the product is marked as Taxable in the child entity, tax is correctly calculated and included on future invoices generated for that product.