Tax on equipment and materials on estimates

[jason_sp]

We do not charge sales tax for our services and would like to know how others are accounting for taxes on equipment and materials when building estimates. Our prices in the pricebook are all pre-tax and when building an estimate it gives an incorrect margin because taxes are not being calculated. TIA

[Matthew-Day]

I have the exact same issue. 
Considering adding it to the "Cost" field, but I am not sure that will jive with the quickbooks.

[LBabayan]

Hi @jason_sp, 

Tracking sales tax is a necessity for any business. ServiceTitan has several options for tracking sales tax depending on the accounting software you're using and your business specifics. 

Please find below some useful series of articles under Sales tax tracking section:

For QBD: https://help.servicetitan.com/landing-page/qbd-home

For QBO: https://help.servicetitan.com/landing-page/qbo-home

Hope this is helpful!

[josemedina1]

@LBabayan , any response to @jason_sp 's comment below? We are wondering the same thing:

"Thanks for the reply but maybe I need to clarify the question. We do not charge tax in PA, we pay sales tax on all COGS. What I'm looking for is the ability to account for tax when building estimates. All materials and equipment costs in the pricebook are pre-tax. When adding these items to an estimate it does not give an accurate representation of actual cost because tax is not being shown. Looking for a best practice to deal with this, or maybe I'm missing something."

[mdeaver8]

Having the same issue. When running the Job Costing Report, the final margin is calculated without the sales tax that we paid on the materials. But, that's money we spent on that job, so it needs to be added to the materials cost in order for the margin earned to be accurate. I understand the need to separate the tax for accounting, but for the job costing portion specifically, this makes no sense. We have to manually calculate to actually see where we're at. 

[jason_sp]

Thanks for the reply but maybe I need to clarify the question. We do not charge tax in PA, we pay sales tax on all COGS. What I'm looking for is the ability to account for tax when building estimates. All materials and equipment costs in the pricebook are pre-tax. When adding these items to an estimate it does not give an accurate representation of actual cost because tax is not being shown. Looking for a best practice to deal with this, or maybe I'm missing something.

[SonyaP]

Jason- did you ever get an answer to your question?  We are new to ST and we cannot add sales tax to our estimates either.