There are two possible methods for applying tax to purchase orders. This article covers the workflow that uses a component type configured specifically for HST. Please see the article linked here for Adding Sales Tax to a Purchase Order.
For more detailed instructions on changing a component type, please refer to the related article linked here.
Before getting started, make sure your Sales Tax Code is properly configured. While this primarily impacts proposals and invoices, it is still required for this HST workflow to function correctly. For more information on creating a Sales Tax Code, please see the article linked here.
For an in-depth video of how how this all works, please see the video demo below:
Once your HST component type has been created, you’ll need to configure both your company settings and project settings as outlined below.
To begin, go to Settings (gear icon in the lower-left corner) and select Workflow Settings. All of the following changes should be made before creating new projects.
Please Note: If projects have already been created without these settings in place, the same changes must also be made within each project’s Advanced Settings.
General Tab
Under the General tab, configure the following:
Ensure the Screen Title for the component displays “HST” or similar wording.
Set the component’s % Type to Mark-up. Do not select Fee, as fees do not appear on purchase orders.
Disable the Include in Deposit option. This HST component will not be used on proposals, since the standard Sales Tax Code will calculate proposal tax separately.
Enable the Auto option so the HST component is automatically added to new items.
Enable Include Tax in Deposit so deposits can be collected based on the full proposal total.
Proposals Tab
Under the Proposals tab, configure the following:
Ensure the Screen Title displays “HST” or similar wording.
Set the component style to Ignore. Your Sales Tax Code will already calculate the correct tax amount, so this prevents HST from displaying twice.
Make sure Suppress Sales Tax is not enabled.
Invoices Tab
Under the Invoices tab, configure the following:
Ensure the Screen Title displays “HST” or similar wording.
Set the component style to Ignore to avoid duplicating tax already calculated by the Sales Tax Code.
Set the HST pricing option to Proposal. This ensures the client is charged the correct HST amount from the original proposal and prevents accidental tax discrepancies.
Purchase Orders (POs) Tab
Under the POs tab, configure the following:
Ensure the Screen Title displays “HST” or similar wording.
Set the component style to either List or Total.
List — Displays the HST component directly below each corresponding merchandise component.
Total — Combines all HST components into a single total displayed within the purchase order subtotal section.
These are all of the required settings needed to properly use HST as a component type within Design Manager.
If these settings were not configured before a project was created, you’ll also need to update the settings within the project itself. To do this:
Go to your Project List.
Open the desired project.
Navigate to the Settings tab within the project.
Select Advanced / Mark-up to open the project-level workflow settings.
If you have any questions or issues with any of this set up, please reach out to Support@DesignManager.com.