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Procore

Add Tax to a Budget

Objective

To add Goods & Services Tax (GST) as a budget line item and to make it visible in a custom PDF. 

Background

A Goods & Services Tax (GST) is a tax on goods, services, and other items sold or consumed in Australia and New Zealand. Procore can add tax to contracts, change orders, and invoices. You can enable the tax codes feature at the company and project level, set the appropriate tax rates and tax codes, and then apply the correct tax codes to individual line items. That process is described in How can I use tax codes on a project?

At this time, Procore's tax feature does not support adding tax directly to a budget. But this article describes a way that you can show tax on your budget.

Things to Consider

  • Required User Permission:
    • 'Admin' level permission on the project's Budget tool.
      AND
    • 'Admin' level permission on the project's Prime Contract tool.
  • Additional Information:
    • GST will be displayed on custom PDFs for the Tax Invoices (Claim Schedules), but will not be displayed in Procore. 
    • Vertical markup will display the markup below the budget line items
  • If you want to enable tax fields throughout the Procore interface, see How can I use tax codes on a project?

Tasks

Create a GST Cost Code and Budget Line Item

  1. Create a cost code in your company's Admin tool for dedicated use for GST. See Create a Company Cost Code
  2. Create a budget line item for the GST cost code and assign it to the 'Other' category. See Create a Budget Line Item.
    Note: You can alternatively create a custom category named 'Tax' or 'GST'. 
  3.  for the GST cost code with a Category of "Other," unless you want to have a custom Category created for "Tax" or "GST." 
  4. Copy the Budget to the Head Contract. Confirm that your line item for GST is visible. (Note: By adding a GST line item to your budget, the variance of what was paid from the client and what was paid to the subcontractors will be displayed, which is useful for generating reports for the government.)

Create a Project-level GST Financial Markup for Head Variations and Commitment Variations

  1. Navigate to the project's Head Contract tool. 
  2. Click the Advanced Settings tab.
    Note: If your browser window is minimized, you might need to click More and choose Advanced Settings from the drop-down menu.
  3. Click Edit in the right-hand side of the screen. 
  4. Under Financial Markup Settings, place a checkmark in the Enable Financial Markups box.


     
  5. Click Save.
  6. Click Financial Markup tab.
    Note: If your browser window is minimized, you might need to click More and choose Advanced Settings from the drop-down menu.
  7. Click New Vertical Markup
  8. Enter the following information in the New Vertical Markup:

    • Markup Name - Enter a name for the financial markup (e.g., GST).
    • Markup Percentage - Enter the percentage for the markup (e.g., 10).
    • Compounds Markup Above - If the box is selected, markup percentage is calculated on the subtotal with the addition of any preceding markups. If this box is not selected, markup percentage is calculated on the change order subtotal.
  9. Select the Categories to which the Vertical Markup will apply. By default the markup applies to all categories. Confirm the Financial Markup is applied to all Contracts and Variations. 
  10. Select the GST Cost Code that you created from the drop-down menu where this Financial Markup will map. 
  11. Select the Category that the GST financial markup will map to ("Other" or custom Type, if created).
  12. Click Save
    Note: The project's Pay Apps (Claim Schedules) and Progress Claims (Tax Invoices) will also now include a GST line on the G703 form.

Important!When a Commitment is created, make sure that a line item for GST is added for each subcontract or purchase with applicable tax.

See Also

 

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