Tax Rules

1. What a Tax Rule Is

Tax Rule (HaloPSA):
A configurable automation that, when an invoice is saved, evaluates a set of conditions (e.g., Top Level, Item Group, Region) and writes the correct tax amount directly onto each invoice line.
Key properties

• Runs only on Save—ideal for testing with sample invoices.
• Applies in order of specificity: the rule with the narrowest matching conditions takes precedence.
• Writes a permanent record; the tax is not an overlay but becomes part of the stored invoice data.

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2. Core Building Blocks

Term	Purpose in DTC’s configuration	Example
Top Level	Combined Industry + Region/State label that drives multiple automations, including tax.	Dental MD (dental offices in Maryland)
Item Group	Limits tax to certain product families.	Recurring Items (technology service contracts)
Tax Rule	Container for rate + conditions. Executes on invoice save.	3 % technology-services tax for Dental MD

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3. Current Production Tax Rules

1. Virginia – No tax on technology services
   Top Level: Dental VA
2. Maryland – 3 % tax on technology services
   Top Level: Dental MD
3. Guardian Dentistry Partners – VA sites (parent spans states)
   Applied at individual sites
4. Guardian Dentistry Partners – MD sites
   Applied at individual sites

Validation tip: The “Tax Rule” status column at Client/Site level can lag. Create a test invoice and save it to confirm the correct tax was written.

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4. Feature Requests & Interim Work-arounds

Requirement	Current Work-around	Status
Filter Tax Rules by Region Code (not just Top Level)	Site-specific rules for multi-state clients	Feature request logged; HaloPSA reports active development
Additional Top Levels for non-dental clients (Technology, Government, etc.)	Temporarily map to correct state-based dental Top Levels so 1 July calculations work	Technology and Government Top Levels created

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5. Known UI / Logic Quirks

• Occasional UI labeling errors (“Tax Rule” toggles showing incorrect state); the underlying application logic remains correct.
• Feedback messages during invoice testing may appear inconsistent; rely on the saved invoice lines for the authoritative result.

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6. Operational Checklist

1. Client / Site onboarding
   • Assign the most specific Top Level available.
   • Ensure taxable items are classified under the appropriate Item Group.
2. Testing procedures
   • Generate and save a sample invoice; verify tax lines immediately.
3. Rule maintenance
   • Keep the rule set lean—one rule per distinct scenario where possible.
   • Document any temporary site-level overrides until the Region-Code feature is live.
4. Permissions
   • Only staff with “Tax Rule” permissions should create or edit rules; grant access once the documented model is approved.

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