How can I apply or remove tax on billing items?
Question
How can I apply or remove a tax on billing items?
Answer
The billing item must be associated with a taxable billing code (work type, material code, service code, etc.). If there is no tax category associated with the billing code, the tax category is non-taxable, or if there is no billing code on the item, then no tax will be applied.
Applying tax
- Set up your tax regions and tax categories. You can do so from Autotask menu > Admin > Features & Settings > Finance, Accounting & Invoicing > Tax Regions & Categories.
- Associate the tax categories with billing codes. To do this, navigate to Autotask menu > Admin > Features & Settings > Finance, Accounting & Invoicing > Billing Codes. Then, edit the billing codes under the different tabs, making sure that they have the correct Tax Category selected.
- Associate tax regions with organizations. Open the Organization page. From the contextual menu, select Invoice Settings.
- When adding billing items to the system, such as time entries and charges, make sure a taxable billing code is associated.
Removing tax
To remove tax from billing items, either select a non-taxable billing code when entering the item or disassociate the Tax Category with the billing codes used on the items.
NOTE Changes to tax configuration only take effect on unposted billing items. If you change the tax rates for a tax category, the tax on existing invoices will not be updated.
