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Tax by Work Code

Time lets you set taxes by work code so that several services with different tax rates can be billed on the same invoice.

The tax is applied to entries with work codes that have the feature activated. When tax by work code is used, the tax set for the work code overrides taxes set at the client level and the default rates set in the Company Profile. Entries assigned to work codes not having their own tax rates would still use either the rates set for the invoice, the rates set for the client being charged, or the defaults set in the Company Profile.

If the tax by work code is in effect, the tax is calculated on time and expense entries, not on the invoice amount. Thus, it is possible to adjust the invoice amount to zero, but still have a tax entry based on the time or expense entered.

When in the Billings from WIP dialog, users cannot manually adjust the tax rates of entries using the tax by work code. The fields are grayed out. To adjust the rates on an invoice manually, turn the tax by work code off in the Client setup | Taxes tab.