Taxes in Projects: General Information

Proper tax calculation is essential for maintaining good financial management practices within the organization. It ensures accurate financial reporting, helps with budget planning, and supports the overall financial health of the company. In MYOB Acumatica, you can configure the automatic calculation of tax amounts on each document that is being entered for a project.

Learning Objectives

In this chapter, you will learn how to do the following:

  • Configure the calculation of sales taxes, use taxes, and value-added taxes for projects
  • Configure the calculation of taxes based on project location
  • Configure the calculation of inclusive taxes for project-related documents
  • Recognize taxes in the project budget
  • Review the GL transactions generated by the system for the taxable documents

Applicable Scenarios

You need to calculate the taxes of the appropriate type for the project-related documents and include these taxes in the project expenses.

Automatic Calculation of Taxes

Taxes are applied in different countries, and their rates depend on the governmental laws of each country. The rate of the tax of each type can vary in different territories of the same country and depends on the type of goods or services that your business provides. Based on your company business requirements, in MYOB Acumatica, you can configure taxes of the following general types:

  • Sales tax
  • Use tax
  • Withholding tax
  • Value-added tax (VAT)

You can specify the appropriate tax calculation method depending on how a tax should be calculated. This includes whether the system should calculate the tax amount based on the total document amount or for each item listed in the document. Additionally, you can choose to exclude the tax amount from the product price specified in the document. For more information about supported tax calculation methods, see Tax Calculation Methods: General Information.

To set up the tax calculation in the documents across the system, you should create all required taxes with their effective rates, along with other tax-related entities, such as tax zones and tax categories. You then associate the tax zones with the appropriate customers and vendors, and associate inventory items with the appropriate tax categories. The system calculates the tax and taxable amounts by using the settings of each tax that corresponds to both the tax category of the specified inventory ID and the tax zone of the selected vendor or customer. For more information, see Tax Zones and Categories: General Information.