There are two methods for creating a tax invoice on Magnetic.
METHOD 1: Create a Tax Invoice(TI) directly from a cost Estimate
***Note*** You can only create a TI from a CE that has been approved by a client.
Follow these steps:
- Click Finance
- Click on Cost Estimates.
- Find the CE you want to use to create a TI from. (You may want to use the search filters).
- Hover over the Action (3 dots) icons on the right-hand side of the CE
- Click on "Add Tax Invoice".
- A new Tax Invoice screen will open where you can fill in all the details for the TI.
- Add the relevant information. (All information marked with *must be filled in).
- Contact: Contact at the company the TI is addressed to.
- Company: Company the TI is for.
- Job: The job the TI is associated with. Link this TI to a particular job by adding the relevant job name in here.
- Owner: Person in charge of the TI.
- Title: Tax Invoice title.
- Tag: A comma-seperated list of tags used to segment your database.
- Issue dates: Date the TI is issued.
- Delivery date: Date goods will be shipped / service provided.
- PO Number: Purchase order number supplied by company.
- Status: Select the workflow stage the TI is in from the dropdown menu. E.g. Issued, Paid.
- Terms of payment: Select the payment term from the dropdown menu. (You can create your own payment term in your company settings under the Finance section).
- Description: Add any extra information you think is important in this text box.
- Hide quantity and costs on PDF: Tick this box if you want this information to be hidden from the client when viewing the PDF.
- Only display section headings and sub-totals on PDF's: Tick this box if you want this information to be hidden from the client when viewing the PDF.
- Hide line totals on PDFs: Tick this box if you want this information to be hidden from the client when viewing the PDF.
- Item types:
- Select the relevant item type from the dropdown menu. You can create your own list of item types. Alternatively, select the "New item" option from the dropdown menu and create a new item type.
- Section Headings: If you would like to split your TI into sections, choose Section Heading and name it. When printing your TI you will see the line items split and a total per section is automatically added.
- Mouse over a line item to display icons to change order, add new or delete line items.
- Quantity: A number of hours for that particular item type to be charged for.
- Cost: Basic cost per line item without markup added.
- Mark-up: Percentage added onto Cost. (Note: For externally sourced products/services, set the markup you are adding in before selling).
- Ext. Cost: The product of quantity x cost that the client will be charged. This amount does not include the margin.
- Margin: Profit value that is added onto the external cost amount.
- Line Total: The total of the external cost plus the profit margin.
- Tax type: Select one of the following options on the dropdown menu:
- No Tax: Items which are not taxed.
- Taxable: Items which follow standard taxable rules.
- Zero Rated: Items that are zero-rated for tax purposes.
- Exempt: Item types which ca not be charged VAT.
- Details: This text box is useful if you want to add additional information about the item type being added.
- Add a discount percentage or change the tax percentage if you wish.
- Ensure all the info is correct.
- Save the details.
- Download or email the TI to the Client by clicking on the Actions (3 dots) menu and selecting the applicable option.
See screenshot below:
Adding a tax invoice directly from a CE
METHOD 2: Creating a Tax Invoice
Follow these steps to create a Tax Invoice:
1. Click on
2. Click on Tax Invoices
3. Click New Tax Invoice.
4. Add the relevant information. (All information marked with *
must be filled in).
5. Ensure all the info is correct. You can also add, remove or move item types by hovering over a line item.
6. Save the details.
7. Download or email the TI to the Client by clicking on the Actions (3 dots) menu and selecting the applicable option.
See screenshots below:
Adding a Tax invoice from the Tax invoices List view
Additional Actions available for Tax Invoices: