Taxes are applied at the cost element level. A single cost item can have different taxes applied to different cost elements within it. Each cost element can have several taxes applied to it. Taxes can be defined to be cumulative where appropriate.
Before you can apply a tax, you must define the tax. A Mandrel datafile can hold definitions for up to 15 different taxes. Tax definitions include the tax name, the rate, and any other taxes on which it is cumulative. A short version of the tax name can be supplied for convenience as well as the full 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.