Master Tax Schedule is Not Set Up
If you do not have a master tax schedule set up for the tax schedule used on an invoice, the billing amount is totalled and then taxed.
Example: Tax schedule that has details totalling 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 |
Master Tax Schedule is Set Up
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 totaled and taxed, then the taxes are added together for the tax total on the invoice.
Example:
- Master Tax Schedule ID = TAX SCHEDULE
- Schedule 1 = 10%
- Schedule 2 = 1%
| COST CATEGORIES | TAX SCHEDULE ID | Tax |
|---|---|---|
| Equipment | Schedule 1 | 10% |
| Material | Schedule 1 | 10% |
| Labor | Schedule 2 | 1% |
| Subcontractor | Schedule 1 | 10% |
| Other | Schedule 1 | 10% |
Billing Amounts
| Equipment | $100.00 |
| Materials | $200.00 |
| Labor | $300.00 |
| Subcontractor | $100.00 |
| Other | $400.00 |
| Subtotal | $1100.00 |
Cost Categories for Schedule 1 (10% tax)
| Equipment | $100.00 |
| Materials | $200.00 |
| Subcontractor | $100.00 |
| Other | $400.00 |
| Subtotal | $800.00 |
| Tax (10%) | $80.00 |
Cost Categories for Schedul 2 (1% tax)
| Labor | $300.00 |
| Subtotal | $300.00 |
| Tax (1%) | $3.00 |
| Total Tax | $83.00 |
| Invoice Total | $1183.00 |
Example
Master Tax Schedule ID = TAX SCHEDULE
Schedule 1 = 10%
Schedule 2 = 1%