Tax Code

If posting taxes to this item, specify a valid tax code (HQ Tax Codes), or accept the default. Default is based on the following:
  • Job Lines — The tax code default is determined by the Base Tax On field in JC Jobs. If set to J-Job, the tax code defaults from JC Jobs. If set to V-Vendor, the tax code defaults from AP Vendors. If set to O-Vendor Override, the tax code defaults from AP Vendors. If a tax code is not specified for the vendor, the tax code will default from JC Jobs. You can override the default as necessary.

  • Inventory Lines — Defaults the tax code from IN Locations, unless material is not taxable, in which case, defaults as null.

  • Exp, Equip, and EM Work Order Lines – Defaults tax code from AP Vendors.

  • SM Work Order Lines – Defaults tax code from one of the following (may override as necessary):

    • Sales tax – from AP Vendors

    • Job work order and use tax – from JC Jobs

    • Customer work order and use tax – from Work Order Site or Center

Note:

When generating work completed miscellaneous lines from AP Transaction Entry, the system posts the tax information to the work completed line based on the work order type, the billable status, and whether the invoice line is material related or non-material. For detailed information, see About Tax Calculations for Work Completed.

  • SM Work Order Lines – Defaults tax code from one of the following (may override as necessary):

    • Sales tax – from AP Vendors

    • Job work order and use tax – from JC Jobs

    • Customer work order and use tax – from Work Order Site or Center

Note:

When generating work completed lines from AP Transaction Entry, the system defaults the tax code as follows:

Note:
  • For billable work order lines created in AP with sales tax, the Tax Type in SM Work Completed is set to Sales, and the Tax Code will default to what was specified in the Service Site or Service Center

  • For non-billable work order lines created in AP with use tax, the Tax Type in SM Work Completed is set to Use, and the tax code will be copied over from AP

Note:

For instances where a non-billable work order line with sales tax is paid to a vendor in AP and has an additional use tax obligation in the service department, the miscellaneous work completed line item will display the use tax where the rate is the remaining difference between sales tax paid in AP, and the use tax to be paid on the work order. (For example, if an item from AP is $100.00 and has a sales tax of 5%, the sales tax is $5.00 in AP. If the use tax on the work order is 15%, the remaining use tax obligation is 10%, and Use tax amount is $10.00 in the Tax Amount field.)

Note:

In an instance where sales tax in AP is greater than or equal to the use tax on the work order (for example, 10% Sales tax and 5% Use tax, the use tax will not display in the Tax Amount field).

Note:

If the work order is job related, no tax code will be assigned to the generated work completed miscellaneous line unless use tax has been assigned.

  • PO & SL Lines – Defaults tax code as defined on the purchase order or subcontract (respectively).

Note:

If you entered a valid, non-taxable material for the line, the tax code will default as null. If you entered a non-valid material, the tax code will default based on the line type.

Note:

If the PO is associated with a job-related SM work order and the tax code specified here is assigned a redirect phase and/or cost type, the appropriate GL accounts must be set up in JC Departments for the phase (Phase Overrides tab) or cost type (Cost Types tab); otherwise, you will be unable to post the batch.

Note:

This applies regardless of how you set the JC interface checkbox in SM Company Parameters.

Committed Costs

If you specified a job (JC, PO, or SL line types) for this line and you post taxes to the line, the system relieves committed costs from the phase/cost type in JC Cost Detail table for the tax amount as follows:

  • if phase and cost type overrides exist for the tax code, the system uses the tax code phase and cost type.

  • if a phase override exists for the tax code, but a cost type override does not exist, the system uses the tax code phase and the cost type from the PO line.

  • if a cost type override exists for the tax code, but a phase override does not exist, the system uses the phase from the PO line and the tax code cost type.

  • if phase or cost type overrides do not exist for the tax code, the system uses the phase and cost type specified for the PO item.

Intercompany Transactions

If the tax type is 1-Sales or 3-VAT (Value Added Tax), the tax code defaults based on the Tax Group assigned to the AP Company.

If the tax type is 2-Use, the tax code defaults based on the Tax Group assigned to the 'posted to' company.

Redirect Phase/Cost Type

If this invoice item is for a 1-Job line, a 6-PO line (that is associated with a job or SM job work order), or an 8-SM Work Order line (job-related work order only), and the tax code entered here is assigned a redirect phase and/or cost type (i.e., JC Tax Phase and/or JC Cost Type in HQ Tax Codes), the system will validate the phase and/or cost type based on the Phases on this job are locked checkbox in JC Jobs. Validation will be as follows:

  • Phases Locked - If the Phases on this job are locked box is checked and the tax code specifies a redirect phase only, the phase must exist in JC Job Phases for the line's job. If the tax code specifies both a redirect phase and cost type, the phase/cost type combination must exist for the line's job in JC Job Phases. If the tax code specifies a redirect cost type only, the cost type must exist in JC Job Phases for the invoice line's phase (for PO and SM lines associated with a job work order, this will be the scope phase).

  • Phases Not Locked - If the Phases on this job are locked box is not checked and the tax code specifies a redirect phase only, the phase must exist in JC Job Phases (for the line's job) or in JC Phases. If the tax code specifies both a redirect phase and cost type, the phase/cost type combination must exist in JC Job Phases or JC Phases. If the tax code specifies a redirect cost type only, the cost type must exist in JC Job Phases or JC Phases for the invoice line's phase (for PO and SM lines associated with a job work order, this will be the scope phase).

If validation determines that the conditions indicated above do not exist, you will need to either use a different tax code or add the phase and/or cost type combination to JC Job Phases or JC Phases (depending on the "locked phases" flag) before you can post the batch.