About the JB Progress Item SM and Tax Form

Use this form to enter stored materials information or override retainage and tax information.

Access this form by double-clicking on any record on the Item SM/Tax tab in JB Progress Billing.

Stored Materials

Use this section to enter materials that have purchased and stored, as well as materials (stored and/or new) that been installed since the last billing.

All materials that were stored after the last billing display in the Previous SM field.

The difference between the purchased amount and the installed amount displays in the Net Invoice SM field. If an amount exists in the Previous SM field, that value is added to the amount in the Net Invoice SM field and displays in the To Date SM field.

Overriding Retainage Information

Retainage amounts automatically calculate based on the rates set up for the contract or items in JC Contracts and JC Contract Items, respectively.

Normally, retainage amounts do not need to be changed. If the retainage needs to be overridden, you can enter retainage information for each item using the SM Retainage % and SM Retg This Invoice fields on this form.

Alternately, enter retainage information by selecting File > Retainage Totals from the JB Progress Billing form to enter retainage at the contract level using the JB Progress Bill Retg Totals form. Entering retainage at the contract level overrides the rate/amount specified for each item, even when an item’s standard retainage was originally overridden at the item level. For more information, refer to JB Progress Bill Retg Totals in Related Topics below.

Overriding Sales Tax

The system calculates sales tax automatically based on standard rates. You will typically not need to alter this information; however, you can use this form to override tax information, if necessary.

If tax is overridden and items are subsequently changed in JB Progress Billing, the system recalculates the tax using the standard rate. In this case, you will need to reenter the override.

Note: If you post intercompany invoices (i.e. the JC/AR company differs from the JC/JB company) and tax is applied to a billing, the tax liability remains with the AR company. For example, let’s assume a JB company of #1 and an AR company of #2. If you post a billing in JB Co #1 for $1050 (includes $50 tax), the following updates occur:

AR Co #2

  • Receivables account is debited $1050

  • Sales Tax Payable account is credited $50

  • Intercompany Payables account is credited $1000

JB Co #1

  • Intercompany Receivables account is debited $1000

  • Contract Revenue account is credited $1000

Retainage Tax

If you specified to include retainage in tax calculations (i.e. you have checked the Calculate Tax on Retainage box in AR Company Parameters), both work complete and stored materials retainage amounts will be included in the tax basis for the invoice item.

However, if you also specified to ‘Distribute Tax to Retainage’ (option in AR Company Parameters), retainage tax will be excluded from the tax basis and calculated separately. In this case, two additional fields are displayed in the Tax section:

  • Total Retainage – This display-only field shows the total retainage (work complete and stored materials) for the billing item. Since you are calculating/tracking retainage tax separately, this amount is excluded from the item’s tax basis.

  • Retainage Tax – This field defaults the calculated retainage tax for the billing item ([work complete retainage + stored materials retainage] x tax rate).

Note: For countries tracking Provincial Sales Tax (PST) and/or Goods & Services Tax (GST), such as Canada and Australia, retainage tax amounts will be broken out and updated to the appropriate GST/PST retainage tax payable accounts (as defined in HQ Tax Codes). The PST and GST amounts (included in tax basis) will be updated to the appropriate tax payable accounts.
Debit Credit

AR Receivables

Job Revenue

Retg Receivables

GST Tax Payables

PST Tax Payables

GST Retg Tax Payables

PST Retg Tax Payables

The following are related topics: