Inspect Point uses a "tax hierarchy" to determine which tax rate to use on a proposal or invoice.
First, it is important to understand that each proposal or invoice in Inspect Point is tied to a building, and if that building is associated with an account, also tied to an account.
You can set default tax rate in your Company Settings. However, you can also set an "override" tax rate on buildings, and on accounts. Here is how the tax rate is assigned:
- If there is no tax override set, the default tax rate (set in Company Settings) will be used
- If there is a tax override set on the account (and no tax override on the building) the account tax rate is used
- If there is a tax override set on the building, the building tax rate is used
Essentially, if there is a building tax rate, that is ALWAYS used – it overrides the account, and company default tax rate. If there is no building tax rate but there is an account tax rate, the account tax rate is used. And finally, if there is no building or account tax rate, the company default tax rate it used. Note, if no company default tax rate is set, the tax rate will be 0%.
Also note, if you are converting a proposal to an invoice (rather than creating an invoice from scratch) the rate that is on the proposal is the rate used on the invoice. This rate cannot be changed on the invoice, as it was finalized when the proposal was generated.
Setting Your Company Default Tax Rate
To set your Company Default Tax Rate, navigate to Settings → Company Settings. Scroll to the bottom of the page and you will see a field titled “Default Tax Percentage.” This number will be the default rate for all future invoices.
Setting Your Account Tax Rate
To set your Account Tax Rate, navigate to Account → Edit → Enable Override. Once overridden, you may enter your desired tax rate.
The Account Tax Rate will override the Default Tax Rate set in your Company Settings should you activate it. Remember, if you do not set an Account rate, the tax rate on your proposal or invoice will come from the Default Tax Rate in your company settings.
Setting Your Building Tax Rate
To set your Building Tax Rate, navigate to Building → Edit → Enable Override. Once overridden, you may enter your desired tax rate.
This rate will override both the Account and Default Tax Rates.
You can revert back to either the Account or Default Tax Rates by unchecking the override button on the Building and Account pages.
Changing the building or account from the dropdown will dynamically adjust the tax and recalculate the total.
Invoice line items are set to not being taxed by default. Checking the “Taxable” box will make these line items taxable. Their tax rate is determined by the tax hierarchy.
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