Apply Client Tax Group When Invoicing Expense

When setting up Invoices at the Client level you can choose to apply the Client Tax Group when invoicing Expenses.

This article details how to apply the client's tax group when invoicing Expenses.

  1. From the Icon Bar click Setup .
  2. From the Navigation Menu click Work to expand the corresponding menu.
  3. From the Work menu items, click Clients.
  4. From the Clients list that displays, click the Name of the client you wish to access.
  5. From the Settings tab of the Client Edit page, expand the Financial navigation menu
  6. Click Invoice Options.
  7. From the Expense Invoicing sub-tab:
    1. Select the Apply Client Tax Group when invoicing Expenses option.

      Note:

      1. When this option is checked:
        • The Expense Taxes button is disabled and any options defined on that page are ignored.
        • When this option is checked, the Tax Group defined at the expense entry level is ignored, and the Tax Group defined on the Client Edit page is applied to the Net amount of any expenses related to this Client during invoicing, regardless of any tax detail correspondence.
      2. When you check/uncheck this option and click Save, if there are non-posted invoices for this client, a message is displayed.
      3. When this option is unchecked, the system applies taxes when invoicing expenses.

      Example:

      The Client is Canadian and is billed in Canadian dollars. The Client has the Canada/Quebec tax group with the following details:

      • Canada GST Taxable: 5%
      • Canada/Quebec QST: 7.5%
      • An expense entry for 98$ USD Net with California taxes is created and approved for the Client. (For this example, 98$ USD translates into 100$ CAD.)
      • When invoicing, the client level tax details are applied to the sum of the net amounts of expenses for this Client, and converted to the Client currency using the exchange rate defined at the invoice level.
      • The Expenses tab displays the net amount of the expenses (excluding taxes) converted to the Client currency.
      • The Taxes tab of the Invoice displays for each client tax detail the tax amount applied on the net amount of the expenses (net amount converted to the client currency).