Phasing out the Penny in Canada

The Government of Canada has announced it is going to phase out the penny from the Canada's coinage system. 

Microsoft Dynamics GP has researched this situation and we are aware Canada is phasing out distributing new pennies.  From what we have discovered at this time, we do not have to make any changes.  Electronic payments can continue using pennies.  Customers may want to evaluate their item pricing structure but that is also not required.

Here is an example of how you can set this up in Microsoft Dynamics GP:

Create an account for the penny difference in the Account Maintenance window (Cards > Financial > Account).

Assign the account to the Writeoffs account in the Customer Account Maintenance window (Cards > Sales > Customer > Accounts) or in the Posting Account Setup window (Microsoft Dynamics GP > Tools > Setup > Posting > Posting Accounts) for the Writeoffs account under Sales.

Enter an Invoice in the Sales Transaction Entry window (Transactions > Sales > Sales Transaction Entry) and post it.

Enter a Cash Receipt for the Cash payment in the Cash Receipts Entry window (Transactions > Sales > Cash Receipts) for the amount minus the penny/pennies and post it.

Apply the Cash payment to the Sales/Invoices document in the Apply Sales Documents window (Transactions > Sales > Apply Sales Documents).  Enter the appropriate Writeoff amount in the Writeoffs field, and then click Post.  Choose to print the Discounts/Writeoffs Journal report which prints the RM Apply Document Journal report as seen below. 

Note: Another option would be to use the Write Off Documents Routine (Microsoft Dynamics GP > Tools > Routines > Sales > Write Off Documents). 

For more information on phasing out the penny in Canada, you can click the following links:

• http://www.mint.ca/store/mint/learn/eliminating-the-penny-6900002
• http://www.budget.gc.ca/2012/themes/theme2-fs-fi-2-eng.html
• http://www.fin.gc.ca/1cent/toolkit-boite-a-outils-eng.asp