How can I use tax codes on a Procore project?

Background

Some construction companies may want to identify taxed amounts for programme of value line items on main contracts, commitments and variations. In Procore, you can set up a tax code, which is a percentage of the amount on a programme of values line item. Tax on a contract, variation and payment application is calculated by referencing the tax code applied to each line item. The total tax amount is a sum of tax applicable for all line items on the financial document, including markup.

Tax code fields appear in the bill of quantities for main contracts, commitments and variations. They also appear on the PDF forms that are generated for main contracts, commitments and variations. You can also see the total tax amount on these PDF forms, broken out from the grand total. You can set up multiple tax codes that can be used for different tax rates per tax code.

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

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

Answer

In Procore, you create tax codes and apply them to line items using the Variations, Commitments and Main Contract tools.

Things to Consider

• Required User Permissions:
  • To setup this feature on your company's Procore account, 'Admin' permission on the Company Admin tool.
  • To setup 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 variation BOQ within Procore (only on the PDF).
  • The Grand Total amount on the contract or variation BOQ within Procore will exclude the tax.
  • If you want 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 Tax to a Budget.
• Limitations:
  • You create 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®
    • 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. 
  • COMING SOON 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 to a Integration Implementation Specialist at erpsupport@procore.com. For more details, see Set Up 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 payment applications 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

1. Enable the tax codes feature at the company level and set up the tax type and tax codes. See Configure Tax Code Settings.
2. Enable tax codes on the Procore project's Admin tool by placing a checkmark in the Use Tax Codes box. See Update General Project Information.
3. When updating Programme of Values (BOQ) on a variation, commitment or the main contract, select the tax code from the list of choice on the line item. For details, see:
   • Create a Commitment
     • Create a Purchase Order
     • Create a Subcontract
   • Create a Commitment Variation (CV)
   • Create Main Contracts
   • Create a Main Contract Variation (MCV)
4. Export the variation to the PDF file format:
   • Export a Main Contract to PDF
   • Export a Commitment to PDF or DOCX
   • Create a PDF of a Variation

      Notes

     • The Tax Code fields appear on the PDFs.  The PDFs also include:
       • Subtotal (without tax)
       • Total Tax (lists a subtotal of all the amounts in the Tax Code column)
       • Grand Total (which includes tax)
     • Payment Application PDFs also reflect the tax. The Summary page of the PDF will add:
       • Tax applicable to this payment.
       • Current payment due including tax

See Also

• Configure Tax Code Settings
• Add or Edit General Project Information
• Create a Commitment
• Create a Main Contract
• Export a Main Contract to PDF
• How can I use tax codes on a project?
• Export a Commitment to PDF or DOCX
• Create a PDF of a Variation