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Procore (en-GB)

Add a Goods & Services Tax (GST) to a Budget

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 and New Zealand. Procore can add tax to contracts, variations and payment applications. 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. That process is described in How can I use tax codes on a project?

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 Permission:
    • 'Admin' on the project's Budget tool.
      AND
    • 'Admin' on the project's Main Contracts tool.
  • Additional Information:
    • The GST is NOT displayed in Procore. It only displays on custom PDFs for the Tax Payment Applications (Claim Programmes). 
    • 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

Steps

Create a GST Cost Code and Budget Line Item

  1. Navigate to the project's Budget tool.
  2. 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 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 Variations and Commitment Variations

  1. Navigate to the project's Main Contracts tool. 
  2. 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.
  3. Click Edit in the right-hand side of the screen. 
  4. Under Financial Markup Settings, place a mark in the Enable Financial Markups checkbox.


     
  5. Click Save.
  6. 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.
  7. Click New Vertical Markup
  8. 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, markup percentage is calculated on the subtotal with the addition of any preceding markups. If this box is not selected, markup percentage is calculated on the variation subtotal.
  9. 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. 
  10. Select the GST Cost Code that you created from the drop-down menu where this Financial Markup will map. 
  11. Select the Category that the GST financial markup will map to ("Other" or custom Type, if created).
  12. Click Save
    Note: The project's Pay Apps (Claim Programmes) and Progress Claims (Tax Payment Applications) will also now include a GST line on the G703 form.

Important!When a Commitment is created, make sure that a line item for GST is added for each subcontract or purchase with applicable tax.

See Also