Click to select a project for which you want to set up sales tax calculations. The project name defaults into the field to the right. Only those projects that have been set up on the Manage Project Billing Information screen are available in this screen.

Enter, or click to select, a sales tax code to which you want to assign a portion of billing for this project. You can set up sales tax codes on the Manage Sales or Value Added Taxes screen.

This field displays the description of the selected sales tax code. You can modify this field to display the applicable tax description that you would like printed on the invoice for this project. You can enter up to 60 characters. This information prints on the sales tax line on the bill.

Enter the percentage of the billing that is subject to this sales tax code for this project. Note that the selected sales tax code rate is applied to the specified percentage of billings based only on the accounts to which this sales tax code is applicable, as set up on the Manage Taxable Sales Account screen.

The total percentages entered in this table window need not equal 100%.

In most cases, you need to set up only a single sales tax code for a given project, using a rate of "100%." If you have set up different General Ledger charge accounts to track costs that must receive different sales tax rates, you can set up more than one state's (or locality's) sales tax code for a specific project, each with a rate of "100%."

In some instances, you may need to set up more than one sales tax code with different percentages. For example, assume that you have a project that is 100% taxable in the state of Texas. Half of the work is done in the city of Houston, and this half of the taxable amount is also subject to Houston's city tax, in addition to the state tax. The project is not subject to any other state or local sales taxes. You have separate general ledger charge accounts already set up to track costs that are subject to Texas sales tax, and these accounts have already been assigned to both the Texas state and the Houston city sales tax codes on the Manage Taxable Sales Account screen. On this screen, you would assign the Texas state sales tax code to this project with a rate of "100%," and the Houston city sales tax code to the project with a rate of "50%."