Sorry, we Americans don't know the answer to any question that has the letters HST in it. Maybe someone else knows the answer?

Steve

HST stands for harmonized sale tax for Canada. For us in Ontario is 13% on most purchases. I believe you will have a similar sale tax system too. I know I pay sale tax each time I buy something from the States.

I just need to know how comes the tax part of the invoice still remain in a batch when we delete the whole invoice out from the payables after Dayending as per recommended procedures. Do we have to zero out the tax manually when doing the deletion?

Kitty

Kitty:

Without seeing your exact PO setup my guess is this happened becasue you are posting taxes when the receipt is posted, not when the invoice is posted.

In Steve's part of the world they only have sales tax which is only charge on items purchased for internal consumption. So for most USA based PO users they are not concerned about tax and if they were it would go to the same debit account as the goods purchased, whereas here in Canada we can recover the tax so it goes to a different account.

At this point you may want to work with your Adagio consultant to review the setup and changes that could be made.

Hi,
We'll contact Kitty to review the situation.

The taxes are calculated and distributed from Purchase Orders (Invoices/Adjustments), and posted through a clearing account into Payables. So deleting an invoice in Payables only deletes the Receipt Clearing entry and not the tax portion that was calculated and distributed to the GL with the PO End of Day processing.

Normally, the practice is to credit the invoice in Purchase Orders and not delete the Invoice in Payables.

Best,
Brian