Entering Tax Code Information (GST/PST)

Use these general steps to set up GST/PST tax code information in the system.

  1. Open the Tax Systems form:
  2. Enter GST as Tax System 1.
  3. Select Tax Mode Item.
  4. If you need to calculate tax adjustments in payments due to discounts and allowances, select Tax Discount/Allowance.
  5. Enter GST as the default value for Item Tax Code, AR/AP Tax Code, Freight Tax Code, and Misc. Tax Code.
  6. Enter PST as Tax System 2.
  7. Select Tax Mode Area.
  8. Enter PST as the default value for Customer/Vendor Tax Code.
  9. Open the Tax Parameters form and make sure Prompt for PST is selected.
  10. Open the Tax Codes form.
  11. Set the Tax Code Type for both GST and PST tax systems to Exempt. Enter a tax code of GST Tax (with Type set to Exempt) for tax system 1. For tax system 2 (PST), enter rates for provinces as tax codes (with Type set to Rate).
  12. Open the Customer Ship-Tos form Codes tab.
  13. Leave the first Tax Code field blank for each customer.
  14. Enter PST in the second Tax Code field.
  15. Open the Items form Sales tab.
  16. Enter the GST (with a "Rate" tax type) under Tax Code for tax system 1. For tax system 2, leave the code blank if your PST needs to be charged. Enter a tax code with an "Exempt" tax type if PST will not be charged.
  17. Open the Customer Orders form.
  18. Enter an order to test the tax system. For total order taxing, check the information in the Tax Info tab. The first Tax Code field should be blank. PST should be in the second Tax Code. Freight and Miscellaneous should display the default tax codes set in the Tax Systems screen for tax system 1.
  19. Print the Order Verification Report. Verify the tax amount on this report before proceeding.
Note: Tax amounts will be placed on the Customer Orders form's Amounts tab when shipping occurs.
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