Job Costing PO includes taxes

[MirandaMel]

I have just recently realized that when you pull up job costing, that PO's cost includes taxes.  This doesn't seem right to me...if we purchased equipment/materials outside of the job then the cost of the tax on those items would not be included.  Has anyone else noticed this?  I have sent in a request to support and am being told the cost of the tax is a direct cost of the job...but this seems contradictory. 

[MirandaMel]

I am thinking this may be a Canadian affected item as everything we quote is plus tax.  We give a subtotal and then a GST amount so that everything is broken out easily for our clients to see.

[Chayo80]

It is a direct cost to the job, unless is a new construction and contractor provides an exempt form for taxes. When we calculate our sale prices, we include the cost of taxes of materials/equipment in the back end, and we point it out that taxes are included- this will give us an accurate gross margin, which is the revenue after all direct costs are subtracted. Your indirect cost would be your overhead. If you are moving pre-purchased equipment from your inventory into the job costing you should be including the taxes , since company will pay taxes on the profits from the sale. This is all part of the COGS