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Financial setup

Tax configuration setup

A tax configuration is a set of tax types and associated actions that are triggered when firms submit invoices for matters that are associated with a supported tax type. To associate a tax configuration with a matter, the
Tax Configuration
 field must be enabled for the matter type template.
Before making changes to any tax configurations, notify Tracker users who are responsible for managing law firm relationships. Accounting code reviewers (ACRs) in particular often rely on the name of the tax configuration may not notice if the definition is modified. As soon as you save changes, the tax type requirements for newly submitted invoices for all matters that share a tax configuration are affected. A very large number of invoices can potentially be affected over time.
Tip | To minimize the impact on your users, consider using rolling changes. Clone existing tax configurations, then use a new name that indicates the change. The older version can be deactivated so that only new matters are affected by the new version.
note
The audit history for matters does not record the change to the definition of the tax configuration used by the matter.
Required role | Company System Administrator
To add a tax configuration:
  1. Select
    Settings
    in the left navigation.
  2. In the
    Accounting and A/P Settings
    section, select
    Tax Configurations
    .
  3. On the toolbar, select
    Add
    .
  4. Enter the information for the new information for the tax configuration in the fields.
    Field
    Description
    Active
    Select the check box to activate the tax configuration, or clear it to deactivate. Users can only select active tax configurations for matter profiles in Tracker. New tax configurations are inactive by default.
    Name
    This name displays in the Tax Configuration drop-down list in the matter profile.
    Description
    This optional Description explains more about the tax configuration. This description does not display in the matter profile.
    Tax Type Configurations
    Tax Type shows all of the tax types that Tracker supports.
    Checking the Require Tax ID box indicates that a tax ID must be included in a firm profile before the firm posts invoices for matters associated with the tax type.
    Optional Comments provide additional details about the selected tax type. These comments do not display in the matter profile.
    Spending Amount Exclusions
    Spending amount exclusions allow selected tax types to be excluded from total matter spend calculations. In the matter profile, you can see these exclusion details by clicking the
    See details
     link next to the
    Total Spending
     field.
    • Tax Type
       shows all of the tax types that Tracker supports.
    • The option you select in
      Fee or Expense
       determines if the tax type will be excluded from invoice fee items, expense items, or both.
    • Tax Rate
       is the tax rate (percentage) associated with the tax type.
    • Optional Comments
       provide additional details about the selected tax exclusion. These comments will not display in the matter profile
  5. On the toolbar, select
    Save & close
    .

This article applies to:

  • Product: Legal Tracker
  • Audiences: Company