Credit memo tax calculation by shipping address for physical products

^{Minor Upgrade}

❗ Important: This feature is currently in Early Availability (EA) status. For more information on feature status, see Product lifecycle phases.

This release updates credit memo tax calculation for physical products so that tax is now determined using the shipping address instead of the payment-method billing address when a shipping address is available. This change helps ensure that tax jurisdiction and tax amounts on credit memos remain consistent with the original hardware purchase, especially when physical and non-physical items follow different tax logic.

Key highlights

• Credit memos for physical products now use the shipping address for tax calculation when provided.
• Aligns credit memo tax calculation with the tax logic used on the original invoice so tax amounts are more accurately reversed.
• Supports scenarios where a single invoice includes both software or digital products and hardware or physical products.
• Digital products are not affected and continue to use the existing tax logic.
• Supports tax code overrides at the individual line-item level in invoice and credit memo edit workflows.
• Especially useful when billing and shipping addresses differ.
• Applies to:
  • Credit memos created from invoices
  • Standalone credit memos

UI updates

To support the above changes, a new Tax Code field is added.

Feature enablement

This feature is not enabled by default. Contact your AppDirect technical representative to request it.

Setting enablement

No setting enablement is required.

Documentation

Documentation will be updated with the release.