How can I use tax codes on a Procore project?

Answer

You can apply tax codes to line items on a Schedule of Values (SOV) using the Change Orders, Client Contracts, Commitments, Funding, and Prime Contracts tools.

Background

In Procore's Project Financials tools, you can set up one or more tax codes in Procore's Company Admin tool. This provides your Project Financials users with the ability to apply a specific tax to line items on a Schedule of Values (SOV). To turn this feature ON in your company's Procore account, your company's Procore Administrator uses the steps below.

After creating your company's tax codes, project users can apply the code to the SOV line items on a contract, funding, change order, and invoice. To calculate the tax amount, Procore applies the tax code to the line item amount, including financial markup, to determine the tax amount. Procore then adds the tax amounts from each line item to determine an unrounded sum and then rounds that sum to determine the total tax amount.

Tax code fields appear in the schedule of values and on PDF forms. You can also see the total tax amount on these PDF forms, broken out from the grand total. In addition, you can set up multiple tax codes that can be applied to line items that require different tax rates.

Invoice PDFs also reflect the tax. The Summary page of the PDF will add:

• Tax applicable to this payment
• Current payment due including tax

Things to Consider

• Required User Permissions:
  • To set up this feature on your company's Procore account, 'Admin' permission on the Company Admin tool.
  • To set up this feature on a project, 'Admin' permission on the Project Admin tool.
• Additional Information:
  • Enabling the tax codes feature in the Company Admin tool makes the feature available on all of your company's Procore projects. By default, tax codes are disabled on projects. 
  • To enable the feature on a per-project basis, see Update General Project Information.
  • The tax amount and rate will not appear on the contract or change order SOV within Procore (only on the PDF).
  • The Grand Total amount on the contract or change order SOV within Procore will exclude the tax.
  • If you are a Procore client who wants to display Goods & Services Tax (GST) or Value-Added Tax (VAT) as a budget line item and to make it visible in a custom PDF, but not add tax fields throughout Procore, see Add a Goods & Services Tax (GST) to a Budget.
• Limitations:
  • You can create one (1) tax type. Multiple tax types are NOT permitted. 
• For companies using the  ERP Integrations tool: Show/Hide  
  • Integration by Procore: Viewpoint® Spectrum®
    • The connector does not currently support syncing tax codes or groups. 
  • Integration by Ryvit: Viewpoint® Vista™
    • The connector does not currently support syncing tax codes or groups. 
  • QuickBooks® Desktop
    • The connector does not currently support syncing tax codes or groups. 
  • Sage 100 Contractor®
    • The connector does not currently support syncing tax codes or groups. 
  • Sage 300 CRE®
    • To sync Procore tax codes with Sage 300 CRE® tax groups, send an email request to your Procore point of contact or contact Support. For more details, see Setup the Import Sage 300 CRE® Tax Groups Feature.
    • If your company is using the ERP Integrations tool to import Sage 300 CRE® tax codes and tax groups into Procore, you will not be able to export subcontractor invoices to Sage 300 CRE®. To learn more about tax codes and groups, see How can I use tax codes on a Procore project? and Setup the Import Sage 300 CRE® Tax Groups Feature.

Tax Code Workflow

The steps below describe the workflow for Procore's tax code feature:

1. Configure Tax Codes for Your Company's Procore Account
   A Procore Administrator enables the tax code feature and sets up your codes in the Company Admin tool. See Configure Tax Code Settings.
2. Configure the 'Use Tax Codes' Setting on a Procore Project
   A Project Administrator updates the Use Tax Codes setting in the Project Admin tool. See Update General Project Information.
3. Apply Tax Codes to a Line Item on a Schedule of Values
   A user with permission to create or edit the corresponding item in one of the supported Project Financials tools can then apply a tax code to a Schedule of Values line item using the 'Use Tax Codes' drop-down list. To learn more, see the appropriate tutorial in the table below.

    Note

   For customers in the United States using a Point-of-View dictionary, see What dictionaries and languages are available in the Procore web application?

   Procore tools supporting tax codes

   Procore Point-of-View Dictionary	Procore Tool	To apply tax codes, see the appropriate step in a tutorial below...
   All Point-of-View Dictionaries	Commitments	Create a Commitment Create a Purchase Order Create a Subcontract Create a Commitment Change Order
   Procore for General Contractors	Prime Contracts	Create Prime Contracts Create a Prime Contract Change Order
   Procore for Owners	Funding	Create Fundings Create a Funding Change Order
   Procore for Specialty Contractors	Client Contracts	Create Client Contracts Create a Client Contract Change Order

4. Export Items to PDF
   Keep in mind that, once applied, the tax amount and rate are NOT visible on SOVs in Procore. Instead, you can view them only when exported to PDF. To learn how to perform an export, see the appropriate tutorial in the table below.

   Procore Tools Supporting Tax Code Exports

   Procore Point-of-View Dictionary	Procore Tool	To learn how to export an item, see a tutorial below...
   All Point-of-View Dictionaries	Commitments	Export a Commitment
   Procore for General Contractors	Prime Contracts	Export a Prime Contract Export a Change Order
   Procore for Owners	Funding	Export a Funding Export a Change Order
   Procore for Specialty Contractors	Client Contracts	Export a Client Contract Export a Change Order

¹ The tax codes appear in the PDF. They are also applied to the PDF as follows: The 'Subtotal' (does NOT include tax), the 'Total Tax' (shows the sum of all the tax amounts in the 'Tax Code' column), and the 'Grand Total' (includes tax). 

² The 'Summary' page of an invoice PDF also shows the tax applicable to this payment and the current payment due includes tax. 

See Also

• Configure Tax Code Settings
• Update General Project Information