Taxes can be applied individually to each and every cost element in every cost item of your cost breakdown structure.
Before you can apply taxes, you must define what they are. A tax definition includes:
1. Tax name
2. Tax rate
3. If the tax is cumulative on others, a list of the taxes on which it cumulates
4. If the tax has a lengthy name, an abbreviated version can be included with the definition.
A total of 15 tax definitions can be stored with any Mandrel datafile.
Inserting Tax Definitions
Use menu call Setup Menu/Taxes to bring up the Taxes form.
Adding a New Tax
1. Enter the tax name into the Tax Name column of the first empty row.
2. If the tax name is lengthy, you can enter an abbreviated name into the Short Name column (this can be useful when generating reports). You don’t need to do this if the name is a short one.
3. Enter the tax rate into the Rate column as a numerical percentage. For example, if the rate is 5%, enter 5. Do not type the % character.
Any tax can be cumulative on up to 4 other taxes. To define one tax as cumulative on another:
1. Select the cumulative tax by clicking on it.
2. Select the tax or taxes on which it is to be cumulative from the drop-down list in the Cumulation box.
Note that circular cumulation is not permitted, i.e. if tax A is cumulative on tax B, then B cannot be cumulative on A.
Default Tax Group
You can specify a default tax group with up to 8 members, which will automatically become the applicable taxes for any newly-created cost item. You can always change the applicable taxes for individual cost items, so having a default group does not limit your tax choices in any way. If you do not have a default group you must select the applicable taxes manually for each cost item.
To include a tax in the default group, check the Default Group box next to its name.
Updating Tax Rates
Tax amounts are not calculated until a report is being generated. The only tax-related information stored with a cost element is the fact of a tax’s applicability, not the actual tax amount. Consequently, changing a tax rate does not require you to change any stored cost item data