Tax Locations

Multiple tax locations can be established to handle sophisticated tax requirements. Tax locations allow for complex tax requirements.

Tax locations include:

• US federal and states taxes

• GST Goods and Services Tax (Canada, Australia)

• VAT (Europe, and other countries)

• PST (Provincial Sales Tax - Canada)

• HST (Harmonized Sales Tax - Canada)

To create Tax Locations:

1. Go to Administration > Global Settings > Organization > Tax Locations.

2. Select New Tax location from the Create Button.

3. Enter the Tax location name.

4. Select Tax rates for the type of tax and enter percentage amounts.

5. Type the Accounting code for each tax rate.

6. Type Optional terminology that displays on POs.

7. Add Notes, if desired.

8. Check the Include GST in PST calculation box if you want the GST to be added to the total before the PST percentage is applied.

9. Click Save.

After creating Tax locations, a Tax Location drop-down list is available within the following entities: Projects, Customers, and Employees.

To apply the taxes to an invoice, you must associate the appropriate Tax Location with the project.

When setting up an expense billing rule, the GST and HST tax amounts can be backed out if they are not application to be billed back to the customer.

Frequently Asked Questions (FAQs)

There are several tax options here such as Federal, State, and GST. How do I know which ones to set up?

This can be simple or complex depending on where your company and customers are located. We suggest contacting your company's Tax Accounting or Finance Department for guidance on which tax rate options should be set up in OpenAir.

Even if I have the proper tax rates set up in OpenAir, how can I make sure that they are applied properly on the invoices?

As mentioned above, taxation action items can be complex. Invoicing Customers should be controlled by your company's Accounting or Billing department. Taxation details are usually contained in the contract or statement of work with the customer.