Apply taxes to an invoice

Taxes are calculated automatically on an invoice, once you perform several setup tasks. You must first set up tax rates and tax groups, and add tax groups to projects and services as necessary. You must also identify relevant activities as taxable. 

  1. Click Setup > Tax Rates and set all rates that you would like to use.
  2. Click Setup > Tax Groups. Click Add, name the group, and select which tax rates to include in it.
  3. Click Setup > Activities and mark the box under Tax Calculations.
  4. Click Setup > Service Templates and select any tax groups that you want to associate with the template.
  5. Click Setup > Project Templates. The Tax Group field defaults to Service, but you can choose a specific tax group in this field by selecting Specified and then selecting a tax group from the Specified Tax Group field.

Once these settings are in place, taxes will be calculated when you enter the billed amount on the Detail Billing screen for an invoice that includes taxable items.