Tax Authority Screen Field Reference

General tab

Field

Description

Tax %

Enter the sales and use tax amount for the tax authority as a percentage with up to four decimal places.

Tax Type

Click to select the tax authority type. .

  • VAT

  • State Sales/Use Tax

  • Local Sales/Use Tax

  • Provincial Sales Tax

Status

Click to select the status of the tax authority. .

  • Active - Account is available for use and appears in lookup lists.

  • Inactive - Account is not available for use and does not appear in lookup lists on other screens. However, it persists in previous selections.

Memo

Enter any comments or notes about the tax authority.

Project Billing Tax Control - Specify which cost type categories are exempt from tax for the tax authority on time and material invoices.

Labor Exempt

Select the checkbox to exempt labor costs for the tax authority.

Materials Exempt

Select the checkbox to exempt materials costs for the tax authority.

Subcontract Exempt

Select the checkbox to exempt subcontract costs for the tax authority.

Hauling Exempt

Select the checkbox to exempt hauling costs for the tax authority.

Equipment Exempt

Select the checkbox to exempt equipment costs for the tax authority.

Overhead Exempt

Select the checkbox to exempt overhead costs for the tax authority.

Others Exempt

Select the checkbox to exempt other costs for the tax authority.

Additional Tax Settings (unlabeled)

Do Not Allow Tax Exemptions

Select the checkbox to not allow tax exemptions for the tax authority. When this checkbox is selected, tax is calculated on invoice distribution lines even if the customer or project has a tax exempt number.

Typically, GST is not tax exempt.

Calculate Tax on Freight

Select the checkbox to calculate tax for the tax authority on freight charges. When this checkbox is selected, tax is calculated on the freight amount in a vendor invoice.

Typically, freight is taxable for GST/HST/PST.

Exclude Tax from Expense Postings

Select the checkbox to exclude tax for the tax authority from expense postings. If you select the checkbox, all accounts payable functions in ProContractor will debit the tax amount to the accrual account instead of the expense account of the distribution line.

Typically, GST/HST is not included in expenses.

Do Not Charge Tax on Retainage Until Release

Select the checkbox prevent tax for the tax authority from being charged on unreleased retainage. Tax will be charged when the retainage is released.

Vendor Taxable Default

Use the Vendor Taxable Default tab to specify default vendor tax settings in ProContractor. Vendor taxable default settings are automatically applied to new line items in vendor invoices, purchase orders, subcontracts, and subcontract change orders. If needed, you can override these settings within the line items themselves.

The Vendor Taxable Default tab contains two grids:

  • Taxable (Yes), which lists the company, transaction type, and cost type combinations that are taxable.

  • Taxable (No), which lists the company, transaction type, and cost type combinations that are not taxable.

By default, all company, transaction type, and cost type combinations are listed in the Taxable (Yes) grid. You can move one or more items to the Taxable (No) grid as needed. For example, in North Carolina, labor costs do not need to be taxed if they are broken out separately from other costs on the invoice. In this situation, you can move the labor costs for the company in the North Carolina tax authority to the Taxable (No) grid. Then, when you add a distribution line to an invoice that has North Carolina as the tax authority and Labor as the cost type, the item line will be non-taxable by default.

To move a company, transaction type, and cost type combination to the Taxable (No) grid, select the item and click Add. To move all items to the Taxable (No) grid, click Add All. To remove an item from the Taxable (No) grid, select that item and click Remove. To remove all items from the Taxable (No) grid, click Remove All.

Note: When you add a new company or cost type to ProContractor, a corresponding item is automatically added to the Taxable (Yes) grid for each tax authority.

Company Division

Field

Description

Company grid - Each row in the grid is a company in ProContractor. Use the grid to set how companies will use the tax authority. Click to display the Division grid, which enables you to set how divisions will use the tax authority.

Company

Displays the code of the company.

Company Name

Displays the name of the company.

Allow

Click to indicate whether this company can post using the tax authority. If you select Yes, you must enter a sales tax accrual account and a use tax accrual account.

Sales Tax Accrual Account

Enter the general ledger account used to accrue sales tax on customer invoices for this company or click to select the account from a lookup list.

Use Tax Accrual Account

Enter the general ledger account used to accrue use tax for this company or click to select the account from a lookup list.

Tax Exemption Number

If this company is exempt from paying sales or use tax to the tax authority, enter your tax exemption number.

Division All

Click to indicate whether all divisions for this company can post using the tax authority. If you select No, you can click to display the Division grid and set up tax authorities by division.

Tax Expense Paid Account

Enter the general ledger account to be debited for sales tax paid on customer invoices for this company or click to select the account from a lookup list.

Tax ID Number

Displays the tax ID number for the company.

Division grid - Click next to row in the Company grid to display the Division grid. Each row in the Division grid is a division in ProContractor. If you set the Division All field in the Company grid to No, use this grid to indicate whether a division can post using the tax authority.

Division

Displays the code of the division.

Division Name

Displays the name of the division.

Allow Posting

Click to indicate whether this division can post using the tax authority.