Hi,
This used to be the case in Ontario before we were fortunate enough to get to HST.

Either yourself or your Adagio consultant should be able to add AP distribution code(s) that consider the invoice distribution as tax included with recoverable GST and expensed PST, and PST exempt with recoverable GST.

The recovery amount is just a mathematical % and works well with the existing Payables module.

Best,
Brian
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Brian Stief,CPA,CA
Stief Group www.stiefgroup.com
Link2 Systems www.link2systems.com
800.540.3164