Do I need to include tax when I enter my expenses? How are taxes calculated?
Looking for help with this feature in Polaris PSA or Polaris PPM? Check out Do I need to include tax when I enter my expenses? How are taxes calculated? in the Polaris help.
No, you don’t typically need to manually enter taxes while entering expenses. Based on the administrator settings, the system automatically applies tax on the net amount (pre-tax amount) that you enter for an expense type for which taxes are applicable. You may also be allowed to override the predefined tax rates for an expense type.
If tax columns are not shown on your expense sheet, you can enable them using the Settings button. Alternatively, you can access the tax values by clicking the Detail button on each expense row.
For expenses types that will have applicable taxes, the amount you enter will be the pre-tax or the net amount. The taxes applied can be a percentage of the net amount, or a flat amount added to the net amount.
Consider that you have entered the net amount for an expense type as shown in the following figure:
The system automatically applies the tax applicable to the chosen expense type and displays the total amount.
For an expense type, you may also be allowed to enter a different tax rate that suits your requirements.
The Net Amount field appears only when you enter amounts for expense types with applicable taxes.
Alternatively, you may be allowed to enter the total amount for an expense type, based on which the system automatically calculates the pre-tax or net amount. The calculation of the net amount from the total amount may be based on a formula defined in the system.
Consider that you entered the total amount in the Amount field as shown here.
The system automatically calculates the net amount from the total amount and displays the net amount in the Net Amount field.
In this instance also, you may be allowed to enter a different tax rate to suit your requirements.