Starting April 1, retailers will be charged fees on the electrical goods by their suppliers.
Retailers will pass on this to the consumers but would like to show this fee as a separate line item on the invoice.

The fee schedule will vary depanding on the product and size - i.e. size of the monitor or TV.

Has anyone given this a thought as to how to implement this?

Gentlemen, this fees will soon come to rest of the provinces and States too. This fee will eventually cover almost any disposable items.

Looking for ideas, please...

Hi Yogi,

We already have this nonsense in BC: it is really just a government tax grab since it really does not result in anything actually being recycled.

HTey best bet is to create misc charges in OE and additional Items in Invoices that credit one or more liability accounts.

I am not sure what the reporting requirements are for the Ontario scheme, but you may have to use GridView to create a monthly report.

Hello:

I'll expand on Yogi's requirements a little since he and I have discussed this before without a good answer.

Yogi's business is fairly high-volume. He is looking for a solution where the fees are calculated automatically when he sells items that are subject to this fee. And I believe that the fees have to be listed separately. If he sells 10 monitors, the fee has to be listed. Then if he sells 10 computers on the same invoice, that fee has to be listed separately.

We considered using taxes but the appearance on the invoice didn't match requirements.

As Ralph suggested, a "Misc Charge" works but requires manual calculation.

Has anyone handled this situation in a different way?

Ralph,

I would like to show this fee as a line item immedietly under the subject item.

In Ontario it seems the Government is letting voluntary group take care of it:
13) Is this a tax? All fees collected from Ontario stewards of WEEE will go towards covering the program’s direct costs of collection, transportation, consolidation, end-of-life management and administration. In addition, funds will be used for public education and awareness, research and development, continuous improvements in technology and program execution. The program is managed by Ontario Electronic Stewardship (OES) which is a not-for-profit organization of brand owners and retailers of electrical and electronic equipment. None of the fees collected from obligated companies will go to government; therefore’ it is not a tax.

And here is more to the confusion, for a program starting in 11 days:

12) Is PST and/or GST applicable to steward’s fees? OES is waiting on a GST ruling from Canada Revenue Agency (CRA) with respect to its WEEE program. Until such time as this ruling is received, OES will be charging GST on fees to stewards obligated for EEE under the WEEE program upon the start of the program. Stewards will be advised of the WEEE GST status as soon as a ruling is received. PST does not apply.

Hi Yogi,

Is it subject to any audit or reporting requirement?

Yogi:

Yes we have this nonsense in BC and there is a very good solution for Adagio. The same one we used in ACCPAC Plus for many years to handle eco fees.

Use either Cost1 or Cost2 and enter the fee. In your tax setup add a jurisdiction for the fee and tax the Cost1 (or Cost2) at 100%. In BC the Fee is GST taxable - this requires a new tax group as he fee must come before GST in order to be taxed by the GST.

The fee will now be charged automatically and you can set it up as either a line item tax or as a total tax.

Andrew:

Yes it is subject to audit and reporting.

Andrew,

AS per their website the reporting system is still under developement.

http://www.ontarioelectronicstewardship.ca/

But I assume we will have to report as per this partiel list:
Classification

$Rate/Item

Desktop Computers *

$13.44

Portable Computers *

$2.14

Computer Peripherals:

$0.32

Including
Mice
$0.32


Keyboards
$0.32


Hard Drives
$0.32


Optical Drives
$0.32

Monitors(with no embedded TV Tuner)

$12.03

TV (includes any monitors with embedded TV tuners)
All Sizes
$10.07

Printing Devices

$5.05

Hello Yogi,

Have you checked out Doug's solution? Does it provide what you're looking for?

Andrew,

I have requested Doug's services to see how this can be fine tuned.
I also would like to get an understanding of how this solution will work with soon to be released Adagio Purchase Order module.

Andrew, go back to say year 1967 when first Provincial Tax was introduced. It took pioneers like me to get the Acouunting systems modified to accomodate these new tax structures.

I appreciate all the "hack" solutions, but at sometime these "Waste Disposal fees" will have to be part of the order Entry/Inventory control systems.

We do not have to use gridview to remit/report GST, PST or any of the Payroll taxes!

Hi Yogi,

Doug's solution does not require GridView to remit the report. It is reported and treated as a tax.

It's not a "hack" solution either. It was one of the tax method anticipated by basing taxes on one of the user cost fields. Having said that, these types of fees are not that common, and so people have to search their collective memory banks to remember how they were implemented.