How are taxes calculated in Procurify?

Answer:

PO Level: 

• When creating a PO, the tax field is only calculated based on the SUBTOTAL of the line items.
• When applying additional costs at the bottom of a PO (ie- freight, discounts), these will NOT be considered in the tax calculation.
• Taxes are created as miscellaneous costs as soon as a PO is marked as received (or partial received)

Bill Level: 

• Using the Procurify Tax field on the line item level
• When calculating tax during the billing stage, the tax field is only calculated based on the tax percentages applied to individual line items that have been selected. 
• When adding additional costs at the bottom of a Bill (custom costs that you may apply), these will NOT be considered in the tax calculation. 
• Before totaling all of the taxes on the bill, the tax amount for each line item is rounded to 2 decimal places after the calculation. Once the tax for each line is calculated and rounded, the total cost of tax for all line items will be added to the bottom of the Bill.

Taxes can also be added as a Cost Type for a bill. When using cost type, the tax amount must be manually entered