PST Processing

The Provincial Sales Tax (PST) acts similar to processing for state tax in the U. S.  The system calculates PST at the open items header level.  To determine the amount of PST, the system uses the PST code on the header and retrieves the PST rate from Reference File category 348.

Entering PST Amounts

Depending on the module, you enter the PST amounts as follows:

Accounts Receivable (AR)

You must manually enter the PST account number and amount to make the item taxable.

Accounts Payable (AP)

You can enter the PST amount in one of two ways:

1.   Enter PST account number and amount on the multi-line screen

2.   Enter PST code and amount on the recap screen.  In this case, the system automatically retrieves the account number from Reference File category 348.

Order Processing (OP)

In Order Processing, the PST code automatically defaults from the customer and the system automatically calculates the PST amount.  You can override the PST code.

Purchasing (PO)

The system determines the PST by province of receiving company/warehouse.   The system can calculate the PST amount automatically or you can enter the amount.  The PST taxable flag defaults from the Vendor Master file (APMASTP).

How PST Is Calculated

To calculate the PST, the system accumulates the amount subject to tax as each line is added, changed, or deleted.  The system calculates the PST based on the entire order (not just a line) by multiplying the amount subject to tax by the PST tax rate in category 348.  If PST is compounded on GST, each time the system adjusts the amount subject to tax field, it also adjusts a GST subject to tax field.  The system checks the PST Compounded on GST flag in category 348 using the PST code.  If the flag equals Y, the system multiplies the GST Subject to Tax field by the provincial tax rate and adds the product of this calculation to the total PST amount.

Reference File Category 348 (Provincial Tax)

The system retrieves the PST rate from Reference File category 348.  Reference File category 348 (Provincial Tax) contains all PST related information about general provincial taxability and/or provincial commodity taxes.

Depending on the module, handles Reference File category 348 as follows:

Accounts Receivable (AR)

In Accounts Receivable, the system uses category 348 to determine if the PST is recalculated for write-offs.

Order Processing (OP)

In Order Processing, there are three ways to enter the category key for category 348.  The following table defines each type of PST/Commodity code combination:

To retrieve the PST Taxable flag from category 348 for each part ordered, the system conducts up to three searches of category 348.  During the first search, the system checks category 348 using a combination of the PST code from the Header screen and the part's Tax Commodity code (from the Part Master File).  If this check is successful, the system retrieves the Taxability flag for the specific combination of PST code and Tax Commodity code for the individual part.

If the system cannot match the PST code/Tax Commodity code combination in category 348, it checks category 348 a second time using only the Tax Commodity code (the system sets the PST code to blanks).  The second check covers the possibility that category 348 contains a generic Tax commodity code that applies to the same commodity group in all provinces.

If neither of the searches are successful, the system retrieves the PST Taxable flag from category 348 using just the PST code from the Header screen.

Purchasing (PO)

In Purchasing, the taxable code defaults from the Vendor Master file (APMASTP).  The system retrieves the PST code from Reference File category 354 and the PST rate and PST compounded on GST flag from category 348.