We operate solely in NYS, and to comply with NYS capital improvement laws, when a job meets the CI criteria, rather than collecting tax from the customer like on our regular service/maintenance jobs, it is our responsibility to sum the total of parts/equipment that was used to complete the CI and multiply it by the local municipal rate. This is the total tax related to do the job, and this is not custodial in nature, but rather more of a company cost of doing the install/capital improvement scope. Our current workflow for this is that we are creating a purchase order for every install once the total costs are in to capture this job cost, and to do this we sum the materials and equipment together * the local tax % and are adding that total as a direct-to-job non-tracked PO. This can be a pretty labor intensive process to manually calculate and build in, and part of me thinks that there has to be an easier way to calculate and record these CI tax costs.
Is there a better way to do this? And by this, I mean to calculate the amount of tax owed and needs to be remitted to NYS, and record the cost of the tax on parts/equipment into the job?
Really genuinely appreciate any insight you might have on this!! Thank you
Are you using Aspire? If you are I'm not sure why are you doing all that work when you can tract the tax when you receive the invoice in the system. I am in in NY and I can share what we do here. You can feel free to contact me 914-948-6468 maybe I might have a solution.