Why Are Taxes Incorrect on an Invoice?

Why Are Taxes Incorrect on an Invoice?

Why Are Taxes Incorrect on an Invoice?

Occasionally, invoices in WorkHorse may show incorrect tax amounts. This typically happens due to tax configuration settings at the state, company, site, or product level. Understanding these settings helps ensure accurate tax calculation.

1. Tax Settings for the State

  • Taxes are calculated based on the state where the transaction occurs.

  • Make sure the state is set to have tax enabled in WorkHorse.

  • If the state is not set for tax, no taxes will be applied, regardless of other settings.

2. Company and Site Settings

  • Each company and site can be marked as taxable or tax-exempt.

  • If a company or site is set as tax-exempt, taxes will not be applied even if the product is taxable.

  • Always verify that the company and site settings allow tax if you expect taxes to be calculated.

3. Product-Level Settings

  • Individual products can also be configured as taxable or non-taxable.

  • A product marked non-taxable will not include tax, even if the state and company are taxable.

  • Confirm that the product is set correctly for the type of tax you intend to charge.

4. Best Practices for Accurate Taxes

  1. Check the state tax settings first.

  2. Verify the company and site are not tax-exempt unless intended.

  3. Ensure products are marked correctly as taxable or non-taxable.

  4. If taxes still appear incorrect, review the invoice to see if a combination of settings is causing the issue.

By confirming these three layers—state, company/site, and product—you can ensure taxes are applied accurately on all invoices.

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