| # To setup tax in Project This functionality is specific for India. This topic provides an overview of the tax setup for a contract in Project. You must define a tax method for a contract line in the Contract Lines (tpctm1110m000) session. Aggregate tax code is defined at various stages of the project depending on the tax method used. Currently, Infor LN uses the following methods of tax calculation: Composition Identification Defining the tax code for a contract in Project In Infor LN, the tax definition is based on the tax calculation method defined in the Tax Method field of the Contract Lines (tpctm1110m000) session. For Composition method: An aggregate tax code is defined for each business partner in the Contract Lines (tpctm1110m000) session. For Identification method: An aggregate tax code is defined for each element or activity in the project structure. Tax in estimation Defining tax method and tax code is optional in estimation. The tax calculation methods can be used only for bottom up estimate with level detail. Estimate version Estimate versions are used to compare estimates for a project. If the project uses composition method, aggregate tax code is defined at the estimate version level. The version amount is used by the aggregate tax code for tax calculation. Estimate structure If the project uses identification method, aggregate tax code is defined for each structural element in the project structure and is copied to the estimate structure. Tax cannot be defined for the following project structures: User defined structure Organization breakdown structure Cost component structure Estimate lines For bottom-up estimate lines; the aggregate tax code is defined along with the cost price, surcharges and landed cost. The aggregate tax code defined on the estimate lines includes all the applicable taxes and the amounts on which the taxes are calculated. The non-claimable tax from the total tax amount is added to the landed cost of the estimate line. Bid When a bid is created from the estimate, the sales amount and the tax amount calculated in estimate are defaulted in the bid. Tax amount is not re-calculated when the sales amount is changed. When a bottom-up detail estimate is launched to budget, the Landed cost amount = Cost amount + non-claimable tax. Tax in budget If the budget is entered manually, the default assessable value is the cost price value. When the budget is generated from the estimate, the tax codes and the assessable value data is transferred from estimate to budget. Budget lines: All the budget lines contain the tax code. The non-claimable tax is included in the cost amount for the labor, equipment, sundry and subcontracting budget lines. For material budget line, the cost amount = Quantity * Cost price + tax amount. When the quantity or cost price is changed, the tax amount is also re-calculated. The material, equipment and subcontracting budget lines include the landed costs. Budget cost analysis: The amount on budget cost analysis is inclusive of non-claimable tax and landed costs. Budget history: Budget history includes all the tax details and the landed cost details from the actual budget lines. Note The tax calculation methods can be used only for the bottom-up budget. Tax in invoicing For all types of project invoices and extension invoices, tax calculation varies based on the tax method selected. For Composition method: The aggregate tax code is defaulted from the Contract Lines (tpctm1110m000) session. For Identification method: The aggregate tax code is defaulted from the activity if the Budget is by activity in the project details or from the element if the Budget is by element in the project details. Tax in costs and commitments The amounts posted in costs and commitments include the non-claimable tax and landed costs. For imports, non-claimable taxes are posted as variances. The postings for costs and commitments are similar as standard Infor LN. Contract Invoicing Delivery-based invoicing, for a contract, is based on the sales amounts of the contract deliverables that are linked to the contract shipments. The invoicing is linked to the excise invoice such as the sales invoice. You can combine more than one delivery for commercial invoicing. Contract Installments The installments can be transferred to Invoicing using the Transfer Transactions to Invoicing option on the appropriate menu in the Installments (tppin4151m000) session. If you link a relevant contract shipment to an installment, the invoice is printed with the excise details. Related topics Overview Overview Using delivery-based invoicing |