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Splitting Canadian taxes into different ledger accounts ?

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Posted on by XeXE 145

Hello all,

So I was able to setup taxes relatively easily. But now I'm running into a conundrum and need help in figuring out how to achieve my goal. What I need is to have different taxes posting into different general ledger accounts based on the province. As it is, this is what I'm trying to do:

// Provinces with HST, All taxes to 25500 account:
example: ONT(HST)>All taxes to 25500 account.

(Provinces with GST/PST:
>GST for all still goes to 25500,


Individual Provincial taxes:
>SK(PST)>25554
>MB(RST)>25555)
//Provinces with GST/PST have to all be linked to the 25500 general ledger table for GST, and then individually linked as well to their respective general ledger tables for PST/RST.

AB(Only charges GST which can go to)>25500
No PST.//

But here's my problem. How do I link  SK nd MB which have both PST/RST as well as GST to two different general ledger accounts? When I'm in the chart of accounts, I can only link 1:1 not 1:2. Am I missing something? Thanks.

Categories:
Financial Management
  • XeXE Profile Picture
    XeXE 145 on at
    RE: Setting up different taxes in Canada and different provinces to different general ledger accounts?

    Hello Tom,

    Thank you for replying. I'm not sure if am not comprehending what the system is doing, or if there is a misunderstanding. I understand the concept of tax jurisdictions, but the way that the financials are setup(Let's use SK for example):

    1) There are 2 taxes(GST and PST respectively for a total of 11%)

    2) The GST 5%  that is collected must go into one account 25500

    3) The PST 6% that is collected must go into one account 25554

    When I go into the tax jurisdictions, I can only seemingly set SK to one tax rate(which is the combined rate of 11%). I can't set SK to split those taxes into different accounts when posting an invoice. Does that make sense? 

    Edit: Here's what we're trying to do from an accountants words:

    We need to remit the different taxes collected to different government agencies, so we need these to go to separate GL accounts based on the province and where it is being remitted. So for SK we need to remit to both CRA (Government of Canada) and Saskatchewan Provincial Government. We need to be able to have 5% of the sales go to the GST payable account and 6% of the sales go to PST payable for that specific province.

    Edit 2: Okay, I think I figured out what I need to do. How do I get back into changing the general ledger accounts each province is pointing to? I know I did it before, but can't recall for the life of me right now.

    Edit 3: Nvm. If you go into the search box and type tax jurisdictions, then go to edit, you can select the current G/l account and a dropdown box will appear, allowing you to change it to whatever you want.

  • Suggested answer
    TWBlaisdell Profile Picture
    TWBlaisdell on at
    RE: Setting up different taxes in Canada and different provinces to different general ledger accounts?

    Hello XeXE,

    Thank you for posting on the Forum.  I hope that you are having a great day.

    Tax Jurisdictions is where the G/L Accounts for the posting of tax are established.

    pastedimage1662657684942v1.png

    However, these are fixed based on how the Jurisdiction is presented in the Tax Area Code. 

    Hopefully, this will help clarify the available configuration.

    Thanks

    Tom

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