Image of Field List button.Project Maintenance—Taxes Tab

The Taxes tab displays the tax information that is used to calculate taxes on invoices you generate in Project and Job Costing. The project type and accounting method determine which fields appear and the level at which you can change certain tax information:

  • For all projects, the Taxes tab displays the tax group and the customer tax classes and tax included status for each tax authority in the tax group.
  • For projects that are billed at the project level (such as fixed price projects that use the completed project accounting method), the tab also displays the detail tax classes for each authority.

For new projects, the default tax group and customer tax classes assigned to the contract appear, if they are specified for the contract. If no tax group is assigned to the contract, the tax group and tax classes from the customer record appear. You can change the tax group, the customer tax classes, and (if the authority permits it) the corresponding tax included status for each tax authority.

The program displays default tax classes and tax included statuses, as follows:

  • If a customer tax class has a corresponding item tax class for the tax authority in Tax Services, the program uses the tax class from the customer record as the default, but you can change it.
  • If a customer tax class does not have a matching item tax class for the authority in Tax Services, the program uses "1" as the default tax class, but you can change it (if the tax authority permits).

You can change the detail tax classes and corresponding tax included status for each tax authority for:

  • Fixed price projects that use a summary invoice type.
  • Cost plus projects that have a completed project, total cost percentage complete, or labor hours percentage complete accounting method.

The default detail tax class is 1.

You do not specify detail tax classes for projects that are billed at the category or transaction level (for example, time and material projects fixed or price projects that use an item invoice type).

For help on using another tab on the Project Maintenance screen, click a link below.