Note: The steps below assume that you are not printing to a cost-based AIA-type invoice format in Billing. Refer to the attachment below for considerations and steps for taxes on cost-based AIA billings.

 

1. Verify that taxes are set up in Accounts Receivable. Refer to the Article: How do I set up taxes in Accounts Receivable?" for steps and considerations.
2. Set up your active contract ID. Refer to Article ID 19256: "DocLink: How do I set up taxes in Accounts Receivable?" for steps to set up a contract in the Contracts module. If you have already set up the contract, proceed to step 3.
3. Set up contract items for correct tax-exempt status and tax group retrieval. Refer to the Article: How do I specify a tax group for my contract?" for steps and considerations.
4. Enter an invoice for the contract in Billings.

    

   • For cost-based billing types (Time & Materials and Cost Plus to Maximum), tax-exempt status retrieves during the Generate Work-In-Progress task, and tax amounts are added to the invoice during the Generate Cost-Based Invoices task.
   • For contract-based billing types (Progress Billing, Lump Sum, and Unit Price), Billing retrieves the exempt status during the Contract-Based Invoices task from the Total billed field on the Tax tab of the contract item in Contracts.

    

    

 

 

Note:

You do not add tax amounts to the contract item amount in Contracts; it will process automatically based on the tax group and exempt status of the item on the invoice document as a separate line. Refer to the attachment below for Tax calculation for cost-based and contract-based invoicing for detailed steps and considerations.