Setting up Tax Posting Setup
Tax Posting Setup: gives the ability to define a Tax Posting Group Code used for sales tax, by Project, Task, Type (Resource, Item, Expense, Resource Group), or work Type, and specify a start date to when the tax is effective.
Important
When a sales invoice includes chargeable resource, item, or expense entry lines, the system first checks the Tax Posting Setup page to determine the Tax Group Code for the transaction. If no setup exists, it falls back to the Tax Group Code on the relevant master record (Resource, Item, Expense, or Resource Group). If that field is blank, the system triggers an error, and the invoice cannot be posted until a Tax Group Code is either added to the master record or defined in Tax Posting Setup for the specific Resource, Item, or Expense and Project combination.
Tax Posting Setup contains the following fields:
| Field Name | Description |
|---|---|
| Start Date |
Specifies the date this Tax should start. |
| Project No. | Specifies the Project to which this line applies. |
| Tax Code | Specifies the Task to which this line applies (may be blank). |
| Type | Specifies the Type to which this Tax should apply. Options: |
| - All | |
| - Resource | |
| - Item | |
| - Expense | |
| - Resource Group | |
| Code | Specifies the Code based on the Type (will be blank when Type is set to All). |
| Work Type Code | Specifies the Work Type code to which this applies (can be blank). |
| Tax Group Code | Specifies the standard Tax Group Code. |
| Ship-To Code | Specifies the standard Ship-To Code for Customer on the Project. |
Hierarchy of Tax Posting Setup
The Tax Group Code on the Sales Invoice Line is automatically populated based on the configuration defined in the Tax Posting Setup page. The system applies hierarchical logic, prioritizing the most detailed parameters first. When a transaction is created, it checks whether a Tax Posting Setup record matches the information entered—such as Project Number, Task, or Work Type.
- If both Project and Task fields on the invoice line are empty, the system applies Tax Posting Setup lines that do not specify a Project or Task - treating them as applicable to all Projects.
- If a Project, or both Project and Task, are specified, those entries take precedence over the more general setup lines without Project or Task.
Specific Hierarchy examples
Project + Task + Work Type (most specific) – In this example, Tax Group Code TG01 will be used.
Project + Task + no Work Type – in this example, Tax Group Code TG02 will be used because Work Type Code is blank.
Project + no Task + Work Type – in this example, Tax Group Code TG23 will be used.
Project + no Task + no Work Type
- With no Item specified, it will use Tax Group Code TG33.
- When there is a specific Item entered, and if there is a Tax Posting Setup for that Item, (in this example, 1964-S), it will use the Tax Group Code for that Item (TG29).
No Project + no Task + no Work Type specified (most general) - in this example, Tax Group G42 will be used for all Items.
Additional Search Hierarchy
If the system doesn’t find a match, then it will apply the Tax Group Code labeled “All” for that Type.
In this example, there is a line set up for Type = blank. Any transactions entered will use the default Type = ‘ALL” and use Tax Group Code TG20.
