Order Item Taxes (Beta)

What is it? 

Taxes can be applied to individual line items when creating an order request. This allows your team to quickly see how the total dollar amount of the request will impact your budget before the request is approved. In addition, your purchasers can say goodbye to adding tax rates and amounts to purchase orders after the items have already been purchased! 

How does it work? 

Three different types of taxes can be applied to orders. When adding an item to an Order Request, select the Estimate Taxes field. Here, you can select from three different tax options:

• Pre-set taxes- These are taxes defined under Manage Tax Type in settings. Common examples are VAT, GST, and HST. Click here to learn how to set up taxes in Procurify. 
• Custom percent tax - Custom percent is a tax you can apply by percent when adding the order item. This is not a preset tax that can be pre-set in settings.  
• Custom amount tax - Custom amount tax refers to a taxable amount that can be added by numerical value and can only be applied at the request for order stage, and they cannot be pre-set in settings.  

Considerations 

• Taxes cannot be customized for PunchOut items as these are already tax inclusive. The taxes field will be locked for all PunchOut items. 
• Taxes can be added to recurring spend items. Taxes will be calculated based on the time period of the recurring spend.
• Taxes can be edited at the Approver stage and Purchase Order creation stage. 
• Taxes will impact budgets directly to the other attributes related to that line item. (e.g., Location, Department & Account Code)

Workflow Overview

Order Request: 

Taxes can be added during Request creation. When adding a line item, select the Estimated taxes field, and choose how you would like to apply tax.

Taxes will show in each line item at the Order Request stage.

The total tax will appear below the subtotal of the Order Request.

Approving: 

Taxes can be edited at the Approval stage. If changes are made to the taxes during the approval stage, there will be an audit log trail. Click the 3-dot options button on the line item and select Edit Item to edit taxes.

Audit log will display if taxes are edited at the approval stage:

Purchase Order:

The Purchaser can edit taxes during Purchase Order creation by clicking the 3-dot option button and selecting Edit item. Taxes will appear on the line item and total taxes above the Total cost.

Billing: 

In Bill creation, taxes added in Order Requests or Purchase Orders will appear as a Miscellaneous tax line item. It will not be tied to individual line items. Please see the image below as an example: