Tax Codes

Depending on the country, tax codes are used to calculate sales tax, goods and service tax (GST), or provincial service tax (PST) on contract and procurement transactions. These codes and their corresponding rates should be identical to those in the accounting system so discrepancies do not occur when exporting transactions.

Below is an overview on how to setup these codes.

Transactions That Reference Tax Codes

The following transactions in Sage Construction Management reference tax codes:

  • Contract Administration Module
    • Prime Contract - Fixed Lump Sum - Original Contract Items (aka Schedule of Values)
    • Prime Contract - Unit Price - Original Unit Price Items
    • Change Proposal Request (CPR) - Proposed Item Details
    • Change Order (CO) - Proposed Item Details
    • Prime Contract Invoice - Line Items and Billed Retainage (aka Holdbacks)
  • Procurement Module
    • POs - Item Details
    • Bills - Item Details
    • Subcontract - Schedule of Values
    • Subcontract - Unit Price Items
    • Subcontract Change Order (SCO) - Item Details
    • Subcontract Invoices - Line Items and Billed Retainage
  • Time and Expenses Module
    • Employee Miscellaneous Expenses

Add Options

Specify Default Tax Codes for Job Cost Codes

Default tax codes can be specified on the job cost codes table (see Projects | Contract Admin module). The setting below will determine if default tax codes apply to both Procurement (AP) and Contract Admin (AR) transactions or if separate tax codes are required. For US and CANADA, it is recommended to use a SINGLE Tax Code whereas in Australia and New Zealand SEPARATE codes are usually needed.

Setting Default Tax Codes on Job Cost Codes Table

Country Specific Details

Tax Code Reference Logic Per Transaction Type