Invoice Sales Tax by Line Item

This feature is in early access and is only available by request.  If you'd like to have this feature enabled in your account, please send an email to [e-mail].

In Teachworks, sales tax is calculated on the subtotal of invoices by default, which is the same method that QuickBooks Online uses for US-based companies.

If your company is located outside of the United States, you can change the default tax behavior to calculate sales tax on individual line items, which is the same method that QuickBooks Online uses for companies located outside of the US.  

Enabling

1. Click on "Account & Settings" and then click on "Account Settings".
2. Scroll down to the "Invoice Settings" section.
3. Set the "Sales Tax by Line Item" setting to "Enabled".
4. Save your changes.
   
   

Usage

The option to set sales tax by line is available when the invoice's "Tax Treatment" is set to "Tax Exclusive" or "Tax Inclusive". 

Creating a Single Invoice

The "Create Invoice" form has a "Tax" column that can be used to specify the tax method for each line item.  The options are as follows:

1. Taxable - The tax rate will be applied to the "Amount" of the line item.
2. Exempt - The tax rate will not be applied to the "Amount" of the line item.

Creating Multiple Invoices

When creating multiple invoices using the Create Multiple Invoices method or the Invoice Autopilot Add-on, the "Add Charge" and "Add Package" options works the same way when creating a single invoice, listed above.

When using the "Lessons by Date" option, the "Create Invoices" form will display a "Tax Exempt" setting.  The "Tax Exempt" setting will allow you to exclude the tax rate from being applied to all of the lessons when enabled, or if left unchecked, the tax rate will be applied to all of the lessons.