| # To setup tax in projects This functionality is specific for India. This topic provides an overview of tax setup for a project. You must define a tax method for each project in the Projects (tppdm6500m000) session. Aggregate tax code is defined at various stages of the project depending on the tax method used. Currently, Infor ERP LN uses the following methods of tax calculation: Composition Identification Defining the tax code in a project In Infor ERP LN the tax definition is based on the tax calculation method defined in the Tax Method field of the Project (tppdm6100s000) session. For composition method: An aggregate tax code is defined for each business partner in the Business Partner by Project (tppdm6101s000) 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; aggregate tax code, additional charges and octroi are 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 + additional charges. Note You can use a maximum of four additional charges and one octroi charge in an estimate line. 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 then the the tax codes, assessable value, additional charges and octroi are 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 additional charges and octroi. Budget cost analysis: The amount on budget cost analysis is inclusive of non-claimable tax and additional charges. Budget history: Budget history includes all the tax details and additional charge details from the actual budget lines. Note The tax calculation methods can be used only for the bottom-up budget. You can use a maximum of four additional charges and one octroi charge in a budget line. 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 Business Partner by Project (tppdm6101s000) 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 additional charges. For imports, the landed cost posted in the costs and commitments is the cost amount of the purchase order. The postings for costs and commitments are similar as standard ERP LN. Related topics Overview of tax in projects Overview of Aggregate tax code |