PROJECT SALES TAX SETUP

Use this screen to specify which percentage of taxable billings for a given project should be subject to specific sales tax codes. To calculate sales tax on a project billing, you must assign all applicable sales tax codes to that project in this screen. If a record does not exist in this screen for a particular project/sales tax code, no sales tax will be calculated for that sales tax code on the project's bill. You can set up the actual general ledger accounts that will be subject to sales tax in the Taxable Sales Account screen (Projects » Billing » Controls).

Set up the project sales tax information only at the invoice project level, that is, at the same project level at which the billing formula is set up. If your billing formula is set up at the highest level of a project, you do not need to set up separate sales tax information for each of the lower levels of that project.

If you want automatic calculation of sales tax, assign sales tax codes and percentages to a project before you calculate billings for that project. You must first set up the necessary sales tax codes in the Maintain Sales/Value Added Tax screen (Others » System Administration » System Codes). You must also assign taxable accounts to the sales tax codes in the Taxable Sales Account screen (Projects » Billing » Controls).

Invoice Project

Use Query to select a project for which you want to set up sales tax calculations. The project name will default into the field below. Only those projects that have been set up in the Project Billing Info screen (Projects » Billing » Billing Master or Projects » Project Setup » Revenue Setup) will be available in this screen.

Table Window

Sales Tax Code

Enter, or use to select, a sales tax code to which you want to assign a portion of billing for this project. You can set up sales tax codes in the Maintain Sales/Value Added Tax screen (Others » System Administration » System Codes).

Description

This field displays the description of the selected sales tax code. You can edit this field to display the applicable tax description that you would like printed on the invoice for this project. You can enter up to 60 characters. This information prints on the sales tax line on the bill.

Percent of Billing

Enter the percentage of the billing that will be subject to this sales tax code for this project. Note that the selected sales tax code rate will be applied to the specified percentage of billings based only on the accounts to which this sales tax code is applicable, as set up in the Taxable Sales Account screen (Projects » Billing » Controls).

The total percentages entered in this table window need not equal 100%.

In most cases, you will need to set up only a single sales tax code for a given project, using a rate of "100%." If you have set up different General Ledger charge accounts to track costs that must receive different sales tax rates, you can set up more than one state's (or locality's) sales tax code for a specific project, each with a rate of "100%."

In some instances, you may need to set up more than one sales tax code with different percentages. For example, assume that you have a project that is 100% taxable in the state of Texas. Half of the work is done in the city of Houston, and this half of the taxable amount is also subject to Houston's city tax, in addition to the state tax. The project is not subject to any other state or local sales taxes. You have separate general ledger charge accounts already set up to track costs that are subject to Texas sales tax, and these accounts have already been assigned to both the "Texas state" and the "Houston city" sales tax codes in the Taxable Sales Account screen. In this screen, you would assign the "Texas state" sales tax code to this project with a rate of "100%," and the "Houston city" sales tax code to the project with a rate of "50%."

Tables Information

This screen updates the following table:

BL_PROJ_TAX_CD