Hi from Canada,
Mark the Enable Canadian Tax Detail option in the Company Setup Options
window (Microsoft Dynamics GP menu >> Tools >> Setup >> Company >>
Company >> Options button) to do the following things:
• Select the account that taxes calculated posts to when a you have selected a
purchase tax detail type.
• Select to post the tax detail to either the account on the tax detail, or the
purchases account associated with the vendor, or the inventory account from
the item on the purchase order/shipment order receipt.
• View sales and purchases transactions with the taxes included in the amounts if
you have marked Inclusive of Tax on the Extras menu (Extras >> View >>
Inclusive of Tax).
This option deals mostly with the Provincial Sales Taxes since most companies include it in the Purchase since it is not refundable like GST. Consider an 8% Provincial Tax rate and a 5% GST. You buy something for $100. Most companies would book the Purchase as $108. Turning this option on lets you put the $8 directly to the Purchases account.
It also removes your ability to edit the Tax Distributions in the Distribution Entry Window of a transaction. You must edit in the Tax Details window.
This option is becoming less relevant as Provinces harmonize with the GST.
Tim
