1Z0-1077-22 · Question #79
A tax authority requires that you calculate tax only on the selling price of an item that you are selling, and not on the shipping charge. How will you achieve this?
The correct answer is B. by moving the "Compute Tax" step before the "Create Shipping Charges" step in the Pricing. See the full explanation below for the reasoning.
Question
A tax authority requires that you calculate tax only on the selling price of an item that you are selling, and not on the shipping charge. How will you achieve this?
Options
- Aby moving the "Compute Tax" step before the "Create Net Price Charge Component" step in
- Bby moving the "Compute Tax" step before the "Create Shipping Charges" step in the Pricing
- Cby creating a sub-algorithm and an expression builder
- Dby using nested action and Groovy scripts
How the community answered
(24 responses)- A8% (2)
- B75% (18)
- C4% (1)
- D13% (3)
Community Discussion
7
Grace U.Mar 6, 2026Moving the "Compute Tax" step before the "Create Shipping Charges" step in the Pricing algorithm is the right move here, because the algorithm runs sequentially, so tax gets calculated against the selling price alone, before shipping charges ever enter the picture. Once you see it that way, B is really the only option that matches what the tax authority is asking for.
Viktor S.Mar 8, 2026Grace is right that sequence matters, but the sharper reason to lock that in is that most tax jurisdictions explicitly prohibit taxing the shipping charge itself, so it is not just about calculation order, it is about what the taxable base legally includes.
Mateus R.Feb 23, 2026The shipping step is like ringing up groceries before the bag fee, so tax only sees the food: B.
Bao N.Feb 6, 2026Saw this exact wording on my attempt two weeks ago, picked B without blinking.
Viktor S.Mar 8, 2026Saw this one, almost overthought it: step order controls what tax hits. B.
Carlos M.Feb 14, 2026B is right. A trips you up because "Net Price" sounds tax-related, but shipping order is the actual fix.
Bao N.Feb 15, 2026Yeah, and the reason A fools so many people is that "Net Price" does show up in pricing condition types, so candidates who drilled that corner of MM tend to misfire there even when they know the shipping flow cold.