If your company operates in more than one currency or country you may need to create additional tax types to use in Projectworks. Tax types are created against a currency and are available for selection when creating invoices or expenses in those currencies.
Only the main tax type based on the location of your company is activated by default when a Projectworks environment is created.
You can set a default tax type (and currency) against your organisation which will be used when creating projects and invoices. It is also possible to set a default currency and tax types on a company, with those details used when creating a project or issuing an invoice for them.
Maintaining tax types
Click the blue + button to add a new tax type. A tax type can be edited by clicking the three dots to the right. Tax types can be made inactive if no longer needed and can only be deleted if they have no data linked to them.
To create a tax type the following are required:
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Name: This is what will be displayed to select the tax type.
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Jurisdication: There is no functionality linked to this - you could include the country or state the tax applies to for your information
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Currency Select the currency the tax type applies to (note each tax type can only be available for one currency)
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Tax Rate: The tax rate percentage.
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This tax is claimable and should be excluded from project cost calculations for projects in USD
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Excluded from project cost calculations: If ticked the tax will be excluded from the purchase amount of expenses for project margin reporting.
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Organisations assigned to this Tax Type: Select each or your organisations that this tax type will be available to.
If you operate in multiple currencies you will need to set up the tax types that are available for invoices in each currency.
Claimable sales tax: How tax types can impact project margin calculations
Setting up tax types properly impacts how the cost value of expenses are treated when calculating margin.
In many countries, organisations are able to claim sales tax back as part of the financial reporting. Each tax type that is set up in Projectworks can be specified as being claimable. With this option checked, the cost of the expense will be treated as the before tax amount in the calculation of the project margin.
Integrating with your accounting platform
If you are integrated with your accounting platform you will need to map the tax types in Projectworks to the tax types in your accounting system.