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To accommodate tax reporting requirements for each province, you should be able to:

• Display tax for all taxable transactions

• Identify taxable and tax amounts for each tax code

• Prepare periodic tax returns, as required by each province and the Federal Government, from your Receivables and Payables subledger transactions

• Ensure the tax liability for each tax code is posted to a separate general ledger account or sub-account. The balance of each of these tax liability accounts, or sub-accounts, must equal the amount of tax owed on each respective tax code.

• Ensure all tax transactions have been posted to the appropriate tax liability account and reported correctly

• Reconcile your tax returns to the tax liability accounts in your general ledger

Only the taxable and tax amounts of a given transaction associated with a particular tax code and general ledger account will be reported within that account. These amounts will be in your functional currency.

Note: Receivables lets you assign a unique general ledger account or sub-account for each tax code using the Tax Codes and Rates window. See: Tax Codes and Rates.

Suggestion: Use the Canadian GST/PST Tax Report to assist with preparing your Canadian Tax return. To simplify your Canadian tax return process, you should assign a different tax liability account to each tax code by province and federal levels, enabling the Canadian GST/PST Tax Report to distinctly display the taxable and tax amounts for each tax code. This will provide a comprehensive method of verifying that all tax transactions have been posted to the correct provincial/federal tax account.

You can create manual journal entries to correct your tax liability on discounts, adjustments, miscellaneous cash receipts, and receipt applications. Where applicable, this report shows the total general ledger account activity for each tax account to assist you with your monthly tax reconciliation.

Report Parameters

Suggestion: Define a Canadian Tax Report Set that includes the following reports to assist you in compiling your GST or PST return:

• Canadian GST/PST Tax Report

• Tax Exempt Customer Report

• Tax Exempt Product Listing

Transaction Date Low/High: The Transaction Date Range should be set to null. Otherwise, if the transaction date and GL date for a given transaction fall in different periods, your report will not balance to the general ledger for the requested GL Date Range.

GST/PST Account Low/High: Select the general ledger account range you want to review.

Include Accruals: Choose whether to report on accrual transactions from the receivables subledger, which include the following transaction classes:

• Invoices

• Debit Memos

• Credit Memos

Include Discounts: Choose whether to report on Earned and Unearned Discount transactions.

Posting Status: You can report on posted, unposted, or all transactions. When you report on posted transactions only, the Unposted column will always display zero, while the Posted column will display zero when reporting on unposted transactions.

Detail Level: You can select various report detail levels. The default level, Show Summary and all Detail, displays all transaction detail, while the Show Summary and Manual Transactions level will display all transactions except for accruals. You can also display transaction summary only with the Show Summary Only option.

Show Ship To Address: Choose how you want to print the ship-to address on your report. You can also choose to print the ship-to address at the Country level. Choose None if you do not want to print the ship-to address in your report.

Column Headings - Detail Section

Transaction Number: This column displays the transaction number of the applied transaction and relates to the following transactions:

• Credit Memos

• Adjustments

• Receipt Applications

• Invoice, Credit Memo and Debit Memo

• Earned Discount

• Unearned Discount

• Miscellaneous Cash

• Adjustment

• Cash Application

Taxable Amount: This column reports on the taxable amount of the transaction related to the current general ledger account. If a transaction posts tax to multiple general ledger accounts (because the transaction includes multiple tax codes), the sum of the taxable amounts from each general ledger account will equal the total taxable amount for the transaction.

Warning: Any invoice line that posts tax to multiple tax codes will display the full value of the taxable amount of the invoice line once for each general ledger account associated with tax code. The duplication of taxable amounts will cause the report to overstate your total taxable amount for the period.

Posted Tax: This column displays the tax calculated by Receivables and posted to the general ledger.

Unposted Tax: This column displays the tax calculated by Receivables and not yet posted to the general ledger.

Tax on Discounts: This column shows the tax for earned and unearned discounts. The tax is calculated based on the tax amount applied to the general ledger tax account to which the tax on the original invoice is posted.

The Canadian GST/PST Tax Report uses a consistent algorithm to calculate tax on applied transactions, regardless of the installment rule of the original transaction. This lets you accrue and report tax immediately, while still enabling you to manage your tax by the applied discount, adjustment, or receipt.

Tax on Adjustments: This column shows the tax for invoice adjustments and finance charges. The tax calculation is based on the tax code associated with the general ledger tax account to which the tax on the original invoice is posted.

Tax on Cash: This column shows the tax for receipt applications and miscellaneous cash receipts. The tax calculation for the cash applications is based on the tax applied to the general ledger tax account to which the original invoice is posted. The tax calculation for the Miscellaneous Cash Receipts is based on the tax code and rate assigned to the receipt in the Transactions window.

Column Headings - Summary Section

• Invoice, Credit Memo and Debit Memo

• Earned Discount

• Unearned Discount

• Miscellaneous Cash

• Adjustment

• Cash Application

Posted Tax: This column shows a summary of the Posted GST/PST column from the detail section per transaction class.

Unposted Tax: This column shows a summary of the Unposted Tax column from the detail section per transaction class. At the end of the reporting period, you should not have any unposted transactions.

Manual Tax: This column shows the sum of the Discounts, Adjustments and Cash columns from the detail section per transaction class. This value represents the sum of the manual tax transactions not automatically posted to the specific tax account. To reconcile your general ledger by Tax account to your Total Tax by tax code, you will have to post the value of this column to the appropriate general ledger account.

Total GST/PST: This column displays the sum of the Posted, Unposted and Manual Tax columns. This value represents your Tax for the reporting period and tax code as defined by the selected date range and Tax account parameters.

General Ledger Activity: The General Ledger Activity of the tax account is displayed if the GL Date Range selected corresponds to a valid accounting period in General Ledger and no transaction date range is entered. The value reported in this column is the net of all general ledger activity posted to this account for the given period.

You can use this value to compare the Total Tax by account with your General Ledger. After posting any Manual GST/PST to the general ledger, the Total Tax for each account should equal the general ledger activity for the corresponding account. To review the details of the general ledger activity, you should run the Account Analysis Report from within General Ledger. See: Account Analysis Report.

Warning: If you revalue the foreign currency transactions for your tax accounts within the general ledger, the general ledger account activity shown will no longer balance to the subledger transactions in the detail section of this report. The functional amounts reported by the subledger for the transaction detail will be shown using the original exchange rate of the transaction, not the exchange rate used to revalue the general ledger account.

Row Headings

See Also