Using Sales Tax in Job Cost

 

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Tax classes can be assigned by cost type in Cost Type Maintenance. These tax classes only apply to time and material jobs in Job Billing Data Entry since fixed contract jobs billing amounts are based on the percent of the contract being billed.

In the Sales Order module, tax classes default from the item code in Item Maintenance or Miscellaneous Item Maintenance for inventory or miscellaneous items and charges, but special items default to tax class TX. Tax classes can be changed during Sales Order Entry and S/O Invoice Data Entry.

Tax is calculated on estimates if there is a valid tax schedule entered on the estimate. If using Estimate Update to Jobs to create jobs, and a valid tax schedule is entered on the estimate, the contract amount and revised contract amount will include the sales tax amount from the estimate.

Tax can also be calculated on retention if the Calculate Sales Tax on Retention check box is selected for the tax code in Sales Tax Code Maintenance, and the Calculate Sales Tax on Retention Invoices check box is selected in Job Cost Options.

  • If these check boxes are both selected, any “less retention” is deducted from the invoice total before tax is calculated, and then tax is charged on the retention invoice.

  • If these check boxes are cleared, “less retention” is not used to calculate sales tax and sales tax is not charged on retention invoices.

Note Changing these check boxes after the “less retention” invoice is done is not recommended since the taxable retention amounts are recorded when the original invoice is posted.

For invoices entered in Job Billing Data Entry and A/R Invoice Entry, tax schedules, and their associated tax codes, default from the Customer. For invoices entered in the Sales Order module, the customer tax schedule or ship-to tax schedule is used.

Expand/Collapse item  Examples for Job Billing Data Entry

 

Expand/Collapse item  Examples Retention Only Invoices

 

Expand/Collapse item  Examples for Sales Order Invoice Data Entry, Time and Material, or Fixed jobs

 

For more information, see:

Job Cost Options

Job Billing Data Entry

Item Maintenance

Miscellaneous Item Maintenance

Sales Order Entry

S/O Invoice Data Entry

Estimate Update to Jobs

Sales Tax Code Maintenance

A/R Invoice Data Entry