We are a heating and gas service company in British Columbia, Canada.
We are about to move all our accounts payable over to ST and we will export to QB Desktop. Unfortunately, we are faced with a tax issue and I am hoping someone can push us in the right direction. When we purchase an item, for any reason, we are charged a "Provincial Sales Tax". This Tax needs to be recorded separately, but becomes a part of the item cost. Our other Tax (GST) is also charged on the cost of the item.
Is there a way in ST, where we can have two taxes on an item and then have one of those taxes become part of the cost of goods? An example: Pipe for a job costs $100. Our supplier will charge us the $100 plus two taxes: PST at 7% and GST at 5%. We pay and track the GST as we have to report that to the government. We need to pay the PST to the vendor and then it just becomes a part of the item cost. We do need to edit these taxes when creating an AP invoice (some different tax rates (don't ask!) apply to some items). Hoping someone has possibly run into this problem and found a solution.
Yes, our "Enhanced Sales Tax" will solve this for you assuming you are using the Canadian version of QBD. Please follow the instructions in this document and reply here if you have any questions. I confirmed you already have the required configs turned on in your account.
Thank you, we'll take a closer look and the Enhanced Sales Tax in ST. The invoicing side works fine and tracks our GST, we are only needing to setup the purchasing side. It's confusing, because we have two taxes and one just needs to show as a separate item, but is actually a cost of goods.