Sales tax on charges, credits, expenses, time, and discounts

To charge sales tax on a credit or charge, select the Tax checkbox on the Delayed Credit or Charge page.

1. Do one of the following:
• For a new charge or credit, click Create (+) > Delayed Charge or Delayed Credit.
• For an existing charge or credit, select Transactions > Sales and click the Unbilled Time & Cost area of the Money Bar. Then, select a customer and select a charge or credit from the table.
2. For each line item, select the Tax checkbox to make the charge or credit taxable. Clear the checkbox to make it no longer taxable.
3. Click Save. When you add the credit or charge to an invoice, you'll see its tax status reflected in the invoice.

To charge sales tax on a billable expense, select both the Billable and Tax checkboxes on the Expenses page.

1. Do one of the following:
• For a new expense, click Create (+) > Expense.
• For an existing billable expense, select Customers and click the Unbilled Time & Cost area of the Money Bar. Then, select a customer and select a billable expense from the table. Lastly, select the Expense link in the Billable Expense page.
2. For each line item, select the Billable and Tax checkboxes to make the expense taxable. Clear the checkboxes to make it no longer taxable.
3. Click Save. When you add the billable expense to an invoice, you'll see its tax status reflected in the invoice.

To change the taxable status of a particular time charge:

1. In the navigation bar, click Customers (or Invoicing > Customers, or Sales > Customers depending on what you see).
2. Select the customer with whom the time charge is associated.
3. Select the time charge from the Transactions table to open it.
4. On the Time Activity page, select the Taxable checkbox to make the charge taxable. Clear the checkbox to make it no longer taxable.
5. Click Save. When you add the time charge to an invoice, you'll see its tax status reflected in the invoice.

If you enter discounts and sales tax on the same sales transaction form, you can control whether sales tax is charged before or after subtracting the discount.

At the bottom of the estimate, invoice, sales receipt, refund receipt, or credit memo, select whether to apply the sales tax before or after the discount. Click the Tax order toggle button (left of the Discount dropdown) to switch the sales tax before the discount or after:

• After discount subtracts the discounts, and then calculates sales tax on the remainder.
• Before discount calculates sales tax on the taxable subtotal, and then subtracts the discount.

For example, with the following amounts:

• Subtotal = 100.00
• Discount = -10.00
• Tax % = 8.5%

Selecting after discount yields a total of 97.65 (100.00 minus 10.00 = 90.00 times 8.5%).

Selecting before discount yields a total of 98.50 (100.00 times 8.5% minus 10.00).

When you preview or print an estimate, invoice, sales receipt, or credit memo, the Amount column includes a T next to some of the amounts, like this:

35.00T

The T indicates that a charge is taxable. Its sales tax is included in the Sales Tax amount at the bottom of the form.