Add a Goods & Services Tax (GST) to a Budget
Note
This feature was designed for Procore customers in Australia, New Zealand or Canada. To learn more, see How can I use tax codes on a project?Objective
To add a Goods & Services Tax (GST) as a budget line item and to make it visible in a custom PDF.
Background
A Goods & Services Tax (GST) is a tax on goods, services and other items sold or consumed in Australia, New Zealand or Canada. Procore can add tax to contracts, change orders and invoices. You can enable the tax codes feature at the company and project level, set the appropriate tax rates and tax codes and then apply the correct tax codes to individual line items on a budget.
At this time, Procore's tax feature does not support adding tax directly to a budget. Instead, this tutorial describes how you can show tax on your budget.
Things to Consider
- Required User Permissions:
- 'Admin' level permissions on the project's Budget tool.
AND - 'Admin' level permissions on the project's Head Contracts tool.
- 'Admin' level permissions on the project's Budget tool.
- Additional Information:
- The GST is NOT displayed in Procore. It only displays on custom PDFs for the Tax Invoices (Claim Schedules).
- Vertical markup will display the markup below the budget line items.
- If you want to enable tax fields throughout the Procore interface, see How can I use tax codes on a project?
Prerequisites
-
Create a dedicated GST cost code to use as your tax. See Create a Company Cost Code.
Steps
- Create a GST Cost Code and Budget Line Item
- Create a Project Level GST Financial Markup for Head Contracts and Variations
- Include GST on PDFs for Contracts, Variations and Claim Schedules
Create a GST Cost Code and Budget Line Item
- Navigate to the project's Budget tool.
- Create a line item on the project's budget for your GST cost code. See Create a Budget Line Item.
Note
- Assign the line item for your GST code to the 'Other' cost type.
- Alternatively, you can copy the Budget to the Head Contract. Confirm that your line item for GST is visible. By adding a GST line item to your budget, the variance of what was paid from the client and what was paid to subcontractors is displayed. This is useful when generating reports for the government.
Create a Project-level GST Financial Markup for Head Contracts and Variations
- Navigate to the project's Prime Contracts tool.
- Click the Advanced Settings tab.
Note: If your browser window is minimized, you might need to click More and choose Advanced Settings from the drop-down menu. - Click Edit in the right-hand side of the screen.
- Under Financial Markup Settings, place a mark in the Enable Financial Markups checkbox.
- Click Save.
- Click the Financial Markup tab.
Note: If your browser window is minimized, you might need to click More and choose Advanced Settings from the drop-down menu. - Click New Vertical Markup.
- Enter the following information in the New Vertical Markup:
- Markup Name - Enter a name for the financial markup (e.g., GST).
- Markup Percentage - Enter the percentage for the markup (e.g., 10).
- Compounds Markup Above - If the box is selected, the markup percentage is calculated on the subtotal with the addition of any preceding markups. If this box is not selected, the markup percentage is calculated on the change order subtotal.
- Select the Categories to which the Vertical Markup will apply. By default, the markup applies to all categories. Confirm the Financial Markup is applied to all Contracts and Variations.
- Select the GST Cost Code that you created from the drop-down menu where this Financial Markup will map.
- Select the Category that the GST financial markup will map to ("Other" or custom Type, if created).
- Click Save.
Note: The project's Pay Apps (Claim Schedules) and Progress Claims (Tax Invoices) will also now include a GST line.
Important!: When a Commitment is created, make sure that a line item for GST is added for each purchase order or subcontract with applicable tax.