Projects - Ensure transactions generated from a project inherit the contacts' tax default
Creating a quote or an invoice from within Projects should respect the same rules for default tax rate that creating one from scratch does, as set out in this article:
https://central.xero.com/s/article/How-your-default-tax-rate-and-account-settings-work
Both quotes and invoices created from Projects ignore the contact "Sales GST" field and revert to the account default.
If the project uses "product or service" item codes with tax rates set, then quotes correctly respect the item tax rate (but still ignore the contact tax rate). An invoice created from Projects ignores both the item tax rate and the contact tax rate.
For example, I have a "With GST" service item and a "Without GST" service item set up. If I raise a quote in Projects for the "Without GST" service item for a contact with a "GST free" sales tax rate, then it correctly goes through as "GST free".
If I raise an invoice for the same item and contact, it sets the account default "GST on income" ignoring both the item rate and the contact rate!
This has meant I have accidentally charged international clients GST on numerous occasions.
This is not an "idea", it is a bug which needs to be fixed.
Jason McGee
shared this idea
Hi Jason, thanks for your feedback on this. We can appreciate how having Projects inherit the default sales tax settings from a contact could make invoicing more efficient and help avoid manual changes before sending invoices or quotes.
I've moved this idea to Gaining Support so we can continue gathering feedback. If you'd find this useful, please add your vote and let us know how this would fit into your day-to-day process.
