I know there have been discussions on the forums in the past on this topic but I am still not able to find a clear solution to the handling of recycling fees with Adagio.

We are currently set up using alerts on specific items and each time we see the alert, we add an item code with the applicable recycling fee. Each month, we run a Gridview report and remit what we've collected.

The way I believe the system should be set up properly is similarly to taxes. For example, based on each customer's tax type, they are charged PST, GST or HST on applicable items. Can Adagio be set up to also charge Recycling on applicable items based on their tax type? The difficulty is that each applicable item is charged a flat rate for recycling rather than a percentage.

We were notified this week that Alberta Recycling is requiring us to register, collect and submit for applicable products shipped to Alberta, even though we are in Ontario. I suppose we will have to do the same for BC, Saskatchewan and Nova Scotia. Each province has a different flat fee for similar items. Is there a way for the system to be set up and calculate all this?

This is an accounting and administrative nightmare for our business. We ship electronics to every province in Canada. I can't believe that the government gets away with this! I guess they do what they want regardless of what problems it creates for small businesses.

Please advise on how I might find a solution using Adagio for this. We are not as concerned about whether the fees will show up as a line item or in the tax/totals section of the invoice. I suppose that a line item would be preferred since it will show what the fee is applicable to. We're more concerned about how to get Adagio to calculate the flat rate fees for applicable items for the applicable customers based on their province, without using alerts and gridview reports.

Thank-you,

Hi Susan,

Here is a link to a technical tip on our website for setting up surcharges or levies in Adagio OrderEntry:

Surcharge / Levy technical tip

Essentially, you create a jurisdiction in your tax table for the recycling fee that is based on one of the User-defined Costs on the item (rather than the selling price), and set the tax rate to 100% for those customers / items that need to be charged the fee. On the Inventory item, enter the amount of the recycling fee into the respective User-defined cost field.

In order to print the recycling fee as a line item, you need to be running version 8.1C and edit the specification to print the tax jurisdiction detail section that is applicable to your fee.

The problem is that there are only 2 definable cost fields in Adagio Inventory. We use most recent cost for the most recent cost. We use standard cost for our sales reps to determine commissions. We use definable cost 1 for blended cost which is required for prorating with POA. We have only 1 remaining cost field.

19" - 29" TV's for example have a recycle fee of $10.07 in Ontario. In Alberta, the same 19" - 29" TV has a recycle fee of $25.

Your solution is good for collecting and remitting recycling fees for one province but we are required by law (so I've been told) to collect and remit for multiple provinces.

$10.07 = 40.28% of $25.00

Make the Alberta jurisdiction remit 100% of User Cost #2 and Ontario remit 40.28% of User Cost #2.

Great idea! I think I'm fully equipped now to test this out with some back up data. If all goes well I'll try with our live data. Thanks.

My jurisdictions currently are as follows (in this order): GST 5%, PST 8%, GST PST Exempt, HST 13%. I need the new Recycle Jurisdiction to be taxable by GST only. So, should I rearrange the jurisdictions like this: PST 8%, GST PST Exempt, HST 13%, Recycle, GST 5%? Please advise.

Hi Susan,

Since the tax calculation is intimately tied to the customer, item (and now ship to) tax statuses, it is an area where your Adagio consultant may better be able to serve you.

I'll see what happens with some back up data if I put the recycle jurisdiction before the other tax jurisdictions and make it taxable.

In July 2010 Ontario is changing over to HST. I'm not sure if it will create a further issue or if it's just a matter of changing the customer's tax type.