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.
- 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”.
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.