Custom Tax Calculations-Construction Digital Workflow Guides

Utilize the custom tax calculation feature to calculate taxes in all cost processes and show tax in the generated cost documentation to comply with government requirements.

1. Accessing Tax Calculations

Project Admins are the only individuals who have permission to create and edit tax formulas.
Within the Project Admin module, select Cost Management on the left side. You will now be able to access the settings for the different components within Cost Management.
Tax formulas are created and managed in the General Settings tab.
Multiple tax formulas can be created, and any existing formulas will be available in the list.
The tax formulas created here can then be applied to contracts, payment applications, and change orders.

Note, the main tab and component names can be customized within General Settings.

2. Creating a Tax Formula

Scroll to the Tax Formulas section, and select “Add”.
To the right, use the text field to name the formula.
Select the pencil icon next to the formula name to edit the name.

To update the net total default (1,000.00) in the center preview panel select “Net total”.
Click “New tax” to add a new tax row to the formula, or select “New tax” and drag it into the center preview panel.
In the Tax edit panel, name the Tax (e.g. VAT) and add the tax rate percent.
Taxes can be added, removed, named and re-ordered as required. After setting the tax rate for each, the amounts are calculated on the shown “Cost Basis”.

For situations where tax on tax is needed, create a single formula that includes multiple taxes by adding subtotals.
Add a subtotal by selecting “Subtotal” or by dragging it into the center preview panel.
In the Subtotal edit panel, select the appropriate “Cost basis revising” option.
- “Revise cost basis” (default), creates a subtotal and recalculates the sample “Cost Basis” for subsequent taxes.
- “Info only,” creates a subtotal for information purposes without recalculating the “Cost basis” for subsequent taxes.
Select “Save”.

To show tax in the generated cost documents, the document template will need to be updated with the new template available in settings.

3. Applying Tax

Tax can be applied to contracts, payment applications, and change orders via the details-flyout panel.
In the details-flout panel scroll to Tax and select “Apply Tax”.
All tax formulas will appear in the drop-down, select the appropriate formula.

Once selected, the tax summary will automatically appear.
Select the “More” menu to delete the tax or edit tax details.

Editing tax details allows you to remove tax from specific line items (e.g. tax exempt items).
In the edit tax details dialog box, click the check mark next to the item to remove the tax.
Select “Done”.
The change will automatically update in the Tax summary table.

4. Edit and Manage Tax Formulas

In General Settings scroll to the Tax Formula drop-down.
To edit a formula, select the formula name.
For additional options select the “More” menu to access the following options:

- Duplicate: to make a copy of the formula.
- Deactivate: to deactivate the formula so it won’t be used.
- Delete: to permanently delete the formula

Note, tax formulas that have been applied to items can not be edited, deactivated, or deleted.

Cost: Custom Tax Calculations