Steps to Setting up and Working in a GST Environment

A.   Set up the Reference File categories as follows:

General Setup

1.   Category 132 (Company/Location Defaults):

(a)  Set Tax flag to B (both) for GST processing.

(b)  Set Declaration point (TAXPNT) to 1 (declaration at invoice).

(c)  Set Default calculation method to G (gross).

2.   Category 326 (State Codes):  Enter province codes.

3.   Category 425 (Tax Commodity Codes):  Set up tax commodity codes if you are using tax commodity codes for a part.

4.   Category 308 (Value Added Tax Information):  Set up GST code(s).

5.   Category 426 (Product Class):  Set up appropriate GST codes for each product class in the VAT code field.  The system uses this field to define VAT or GST codes associated with the product class.

Order Processing and Accounts Receivable

1.   Category 447 (OP Systems Defaults 3):  Enter the minimum freight required on an export.  On export orders from Canada, the government charges GST only if the freight charge is below the minimum amount designated in this field.

2.   Category 348 (Provincial Tax):

Set up a code for each PST code, generic Tax Commodity code, and  PST/Tax Commodity code pair used:

(a)  PST code:  Required.  Enter a PST code without accompanying Commodity code.  On these types of records enter the following:

(1)  Future PST Rate:  Set up current and future PST rates along with a future effectivity date for category records with generic PST codes.  MAC-PAC applies the current PST rate until the future effectivity date is reached.  At that point the system uses the future rate.

(2)  PST Compounded Flag: The system uses this flag in Order Processing to determine whether or not to calculate PST on the total amount included in GST.

(3)  PST Recoverable Flag:  The system uses this in Accounts Receivable to determine if the PST for items written-off is recoverable from the government.

(b)  Generic Commodity code:  Optional.  Enter a generic tax commodity without an accompanying PST code.  Use this code to override the PST taxable flag when a specific commodity is not taxable across all provinces.  Set the PST Taxable Flag to N.  The system uses this flag in Order Processing to determine if an item is taxable or not.  The system applies the value of this flag as the default for the Apply PST Y/N field.

(c)  PST/Tax Commodity code:  Optional.  Enter a combined PST/Tax Commodity code to define a specific tax commodity code.  Use this code to override the PST taxable flag (determined by the PST code prefix) when a specific commodity is not taxable in a specific province.  The system specifies commodity tax codes on the part description.  Set the PST Taxable Flag to N. 

3.   Category 302  (Account Number Assignment):  Enter the G/L account numbers for Accounts Receivable to hold the amount of GST and PST collected or going to the government.  Enter an account number for each PST and GST code added to categories 348 and 308.  Enter account type 65 for GST accounts and account type 17 for PST.  You must enter at least one tax code for GST taxable items. 

Purchasing

1.   Category 354 (Province Code/Tax Code):  Set up a four character PST code for each province.  The system uses this code to link the two character geographical province code to the four character provincial code used in category 348.

2.   Category 230 (Tax Information):  Set up new GST tax code(s) and rate(s).

Accounts Payable

1.   Category 230 (Tax Information):  Set up PST codes with rates for each province.  For provincial tax codes, you must enter a 1 in the Tax Code field to distinguish a PST code from VAT or GST codes.

2.   Category 202 (Account Number Assignment):  Enter the G/L accounts for Accounts Payable against which the system posts tax transactions.  You must enter a type 65 (VAT declared) for GST tax code(s) and a type 17 for PST.

3.   Verify that at least one plant and warehouse (that point to a GST General Ledger location) exists in Design Engineering (DE).

4.   Assign parts to warehouses through Inventory Control or Order Processing.

After these steps are complete, you can use any of the Order Processing, Accounts Receivable, Purchasing or Accounts Payable modules.