How can I use tax codes on a Procore project?

Answer

You can apply tax codes to line items on a Schedule of Values (SOV) using the Change Orders, Client Contracts, Commitments, Funding, and Prime Contracts tools.

Background

In Procore's Project Financials tools, you can set up one or more tax codes in Procore's Company Admin tool. This provides your Project Financials users with the ability to apply a specific tax to line items on a Schedule of Values (SOV). To turn this feature ON in your company's Procore account, your company's Procore Administrator uses the steps below.

After creating your company's tax codes, project users can apply the code to the SOV line items on a contract, funding, change order, and invoice. To calculate the tax amount, Procore applies the tax code to the line item amount, including financial markup, to determine the tax amount. Procore then adds the tax amounts from each line item to determine an unrounded sum and then rounds that sum to determine the total tax amount.

Tax code fields appear in the schedule of values and on PDF forms. You can also see the total tax amount on these PDF forms, broken out from the grand total. In addition, you can set up multiple tax codes that can be applied to line items that require different tax rates.

Invoice PDFs also reflect the tax. The Summary page of the PDF will add:

Things to Consider

Tax Code Workflow

The steps below describe the workflow for Procore's tax code feature:

  1. Configure Tax Codes for Your Company's Procore Account
    Procore Administrator enables the tax code feature and sets up your codes in the Company Admin tool. See Configure Tax Code Settings.
  2. Configure the 'Use Tax Codes' Setting on a Procore Project
    A Project Administrator updates the Use Tax Codes setting in the Project Admin tool. See Update General Project Information.
  3. Apply Tax Codes to a Line Item on a Schedule of Values
    A user with permission to create or edit the corresponding item in one of the supported Project Financials tools can then apply a tax code to a Schedule of Values line item using the 'Use Tax Codes' drop-down list. To learn more, see the appropriate tutorial in the table below.
     Note
    For customers in the United States using a Point-of-View dictionary, see What tool names and terms are different in Procore for general contractors, owners, and specialty contractors?

    Procore tools supporting tax codes

    Procore Point-of-View Dictionary Procore Tool  To apply tax codes, see the appropriate step in a tutorial below...
    All Point-of-View Dictionaries Commitments
    Procore for General Contractors Prime Contracts
    Procore for Owners Funding
    Procore for Specialty Contractors Client Contracts
  4. Export Items to PDF
    Keep in mind that, once applied, the tax amount and rate are NOT visible on SOVs in Procore. Instead, you can view them only when exported to PDF. To learn how to perform an export, see the appropriate tutorial in the table below.

    Procore Tools Supporting Tax Code Exports

    Procore Point-of-View Dictionary Procore Tool To learn how to export an item, see a tutorial below...
    All Point-of-View Dictionaries Commitments
    Procore for General Contractors Prime Contracts
    Procore for Owners Funding
    Procore for Specialty Contractors Client Contracts

1 The tax codes appear in the PDF. They are also applied to the PDF as follows: The 'Subtotal' (does NOT include tax), the 'Total Tax' (shows the sum of all the tax amounts in the 'Tax Code' column), and the 'Grand Total' (includes tax). 

2 The 'Summary' page of an invoice PDF also shows the tax applicable to this payment and the current payment due includes tax. 

See Also