Before You Start
Tax is set on each BOM, in the Pricing & Lead Time tab. There's no default tax rate, so you'll enter the rate on every BOM you quote.
Tax is calculated on the BOM as a whole, whether the quote is lot-priced or itemized. It isn't set line by line.
Parspec doesn't suggest a tax rate. Use the rate your business charges for the job's location.
Add tax to a BOM
Open the BOM and go to the Pricing & Lead Time tab.
At the bottom of the screen, find the Taxes folder (next to Freight and Services).
Click the pencil icon on the Taxes folder.
Click + to add a tax line. The folder stays empty until you add a line.
Complete the following fields:
Tax Name: Enter a name to identify the tax (e.g., Sales Tax).
Apply To: Select what the tax should cover:
Products (Extended Price): Selected by default. Tax applies to all product lines.
Services: Select to include service fees in the tax calculation.
Freight: Select to include freight charges in the tax calculation.
Magnitude: Enter the tax percentage. Parspec automatically calculates the dollar amount in the Amount column.
The tax total now appears in bold on the Taxes folder and is included in the Grand Total.
Note: Services and freight are not taxed by default. Add service fees in the Services folder rather than as BOM lines; otherwise, they'll be taxed as products.
Show Tax on the Printed Quote
Entering a tax rate on the BOM doesn't change what's printed until you choose how totals are displayed. When you click Create Quote, go to the Pricing & Lead Time settings:
Summarized Total: choose Products, Services, Taxes, Freight, and Grand Total to show tax as its own line, or Grand Total Only to include it without a separate line.
Section Summary: choose Section summaries with taxes to show tax under each section.
Lot & Financial Breakdown: controls whether the tax breakdown is shown.
Tip: If your quote shows Taxes $0.00, the tax display is turned on but no tax line has been added to the BOM. Go back to the Pricing & Lead Time tab and check your taxes folder and confirm setup.
Common Situations
The job is tax-exempt, or you want to show tax without adding it to the total
To state that tax isn't included, add a closing note. Closing notes print directly under the Grand Total.
Pro Tip: Admins can add a standard "tax not included" note to the company quote template under Settings > Document Templates so it appears on every quote.
To show an estimated tax amount without adding it to the Grand Total, add a line in the Options table at the bottom of the BOM with the tax amount. Options print after the total and aren't included in it.
Need More Help? Reach us directly through the in-app chat — just click the chat icon within Parspec — or email us at Support@parspec.io