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If you do not have a master tax schedule set up for the tax schedule used on an invoice, the billing amount is totalled totaled and then taxed.
Example: Tax schedule that has details totalling totaling 10% tax:
| Equipment | $100.00 |
| Materials | $200.00 |
| Labor | $300.00 |
| Subcontractor | $100.00 |
| Other | $400.00 |
| Subtotal | $1100.00 |
| Tax | $110.00 |
| Total | $1210.00 |
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If you do have a master tax schedule, the billing amounts for the cost categories (Equipment, Materials, Labor, Subcontractor, and Other) that use the same schedule are totalled totaled and taxed, then the taxes are added together for the tax total on the invoice.
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