Implementing BC PST and PEI HST in Dynamics GP
As of April 1, 2013, the Government of Prince Edward Island is implementing the Harmonized Sales Tax (HST). The combined HST rate in PEI will be 14%, of which 5% will represent the federal part and 9% the provincial part. Further, the Government of British Columbia will be eliminating the HST and reinstating PST and GST on taxable services provided in British Columbia. As of April 1, 2013, you will be taxed GST at a rate of 5% and PST at a rate of 7%.
To create the ability to track these changes in Dynamics GP, one must utilize Tax Details and
Tax Schedules. Tax Details identify specific taxes and their rate of taxation. These are then assigned to & grouped on Tax Schedules for processing transactions in GP. Tax Schedules can be assigned to Customers, Vendors, Items, etc.
Setting up Tax Details
- Enter a Tax Detail ID and a Description.
- It is important to set the Type properly as Tax Details can apply to either Sales (to a Customer) or Purchases (from a Vendor) exclusively.
- Set a default GL Account to distribute tax transactions to in order to capture values in the general ledger.
- Set both the Based On & Round values depending on the tax. For HST & PST, these should be set to Percent of Sale / Purchase & To the Nearest Currency Decimal Digit respectively.
- Set the Percentage for the Tax Detail. For HST PEI, this is 14%. For PST BC, this is 7%.
Setting up Tax Schedules
The Tax Schedule Maintenance window contains two list boxes:
- The Available Tax Detail IDs list box displays a list of all the tax details entered.
- The Selected Tax Detail IDs list box displays the details added to this schedule.
- To add tax details to a tax schedule, highlight a detail in the Available Tax Detail IDs list and click Insert. The detail is inserted in the Selected Tax Detail IDs list and is included in this tax schedule. Continue selecting and inserting details until the complete tax schedule is created.
Assigning Tax Schedules to Customers/Vendors
Once tax schedules have been created and saved, the last step in the process is to assign the tax schedule to a customer or vendor, etc. If a new tax schedule is to be applied to a customer, navigate to the Sales > Cards > Customer. Then, select the appropriate customer & enter the appropriate value in the Tax Schedule field. To assign the tax schedule to a vendor, navigate to Purchasing > Cards > Vendor.
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