You’re offline. This is a read only version of the page.
It just came to my attention of how our AP team has been handling invoices from BC now that they have switched back to the PST/GST model.
If a purchase is $100 + $7PST + $5GST, they will enter the purchase amount of $107, then delete the PST that is calculated by GP and manually correct the GST amount to $5.
The reasoning is that they do not want/need for the PST to go to a tax account on the B/S.
We are based in Ontario and don't need to track the PST paid in BC
Our controller seems to be okay with the practice but something doesn't sit right with me. It seems that we are inflating our purchase amounts - but I do not know where else to stick the PST. Any comments on how you are handling the situation?
Thanks
I encountered the same issue and I found your entire posts very helpful Tim! I'm glad to have experts like you in the community!
Thanks for everyone's help.
You have to go to Company Setup Options and mark "Enable Canadian Tax Details" to see the field.
Tim
if you use a tax code set up won't you force all the BC PST to go to the same account, where-as you really want the PST to go to the same account as the expense itself?
In MB and SK we have the same requirement - no refundable tax and hence adding the PST to the purchases so that the same account is used.
This is how we have done taxes for the 20+ years I've done accounting, on both GP and non GP accounting systems.
If you are happy with the PST going to one expense account then absolutely the tax ID method will work well. You then would have the true purchase in the purchase box.
Thanks for the quick response. I do not have that drop down box on my Tax Detail Maintenance window. I made sure that it is not a customized window (there is no '.' in front of the window name).
I was able to find a screen shot of what you had mentioned - so I know exactly what I am looking for.
www.websan.com/.../implementing-bc-pst-pei-hst-in-dynamics-gp
Can you thing of anything in setup that I would need to enable to activate this dropdown?
In Tax Detail Maintenance, on a Purchases Tax Detail Type, there is a dropdown next to the account with three choices - Tax Detail Account, Vendor Purchases Account and Inventory Account.
Tim
Tim,
Thanks for your responses. Using the adjusted GST rate will definitely work, but I was looking for a solution similar to your second post. This will allow my users to enter the purchase amount and have the two taxes calculated automatically - and the PST will be posted to the vendor purchase account.
I am using GP2010 (should have mentioned that earlier) - I don't see where in the Tax Detail Maintenance window I can select to have the tax post to the "Vendor Purchase Account".
Am I missing something?
Thanks again.
I just remembered that in GP 10 and on you can create a tax detail that will post amounts to the "Vendor Purchase Account" which will effectively do the same thing as before but track the tax as a tax. In the GL it will still wash through the Purchases account, but you will have more detail. Also, then you don't have to do the tricky rates thing.
Tim
That is the way that most companies I have worked for have handled PST amounts. After all, when you bought that "thing" in BC you paid $107 (before HST). You "duty" in Accounting is to reflect the truth. Taxes or purchases, it all washes to the income statement. However, I have set the taxes up a little differently than you to speed entry. For BC Vendors I would create a purchasing tax schedule (P-BCPSTGST) with a tax detail (BC-GST) with a rate of 4.6729%. That way when your AP folks enter 107 they get $5.00 GST. The CRA doesn't care what rate you apply or the calculation, only that when you buy something for $100 they get $5.
Tim
Stay up to date on forum activity by subscribing. You can also customize your in-app and email Notification settings across all subscriptions.
#1
André Arnaud de Cal...
290,524
Super User 2024 Season 2
#2
Martin Dráb
228,469
Most Valuable Professional
#3
nmaenpaa
101,148
Share
Report
All responses (
Answers (