Sales tax in Design Manager is set up when creating a new project. If the project wasn’t configured correctly from the start, you may notice that sales tax is missing or not appearing as expected on proposals or invoices.
This guide will walk you through the key areas to review and update in order to resolve sales tax issues.
1. Sales Tax Codes
Your sales tax code is always the first place to investigate.
To access this:
Go to Settings → Glossary → Sales Tax Codes
Edit your sales tax code and confirm the following:
The correct tax rate is applied to each applicable component type
Any taxable component types are properly set under “Taxable Defaults”
These defaults are important because they determine how tax settings are applied when a new project is created. If they are incorrect, your project settings will also be impacted.
For more information on creating a sales tax code, please refer to: Adding a Sales Tax Code
2. Project Information & Settings
When reviewing the project, first navigate to the Info tab and confirm that the Sales Tax Code assigned to the project is correct.
If the code is incorrect, simply select the appropriate option from the Sales Tax Code dropdown to update it. Please note that if this is the case, you will still need to review your project settings and items to ensure everything is configured properly.
If the sales tax code was not set up correctly, it can carry over into your project settings. This is the next area to review.
To access:
Open the project → Go to the Settings tab
Key items to check:
Include Sales Tax in Deposit
If this is unchecked, sales tax will appear on the proposal but will not be included in the total amount due
Advanced / Mark-Up Settings
Click Advanced / Mark-Up
In the new window, go to the General tab
Review the Taxable Defaults
These defaults control whether each component type is automatically marked as taxable when items are created. If these are incorrect, update them to reflect the proper taxability for your project.
3. Items & Components
If issues persist, the final step is to review your items.
If taxable defaults were initially set up incorrectly, that error will carry through to existing items. In this case:
Edit each item and its components
Ensure the taxable box is checked or unchecked appropriately based on its taxability
Final Step
Once updates have been made, edit and re-save your proposal to ensure the changes are reflected.
If the issue is still not resolved after these steps, please reach out to Design Manager Support at Support@DesignManager.com so we can take a closer look.