Hello,

Our auditors have turned up an issue with the GST distribution sets. It seems that the total entered is not calculating the percentage listed in the set. For example, I have a GST only distribution and it is set up for 2.38000%. When I enter an invoice for $630 (600 plus 30 gst) I should get a calculation of $15.00 tax but I don't. I'm getting $14.65. Is there something I'm doing wrong?

The calculation is correct:

1.0238 = 630.00 = Amt + Tax
1 = 630/1.0238 = 615.35 = Amt
630 - 615.35 = 14.65 = Tax

If you really want to get $15.00 tax from $630.00 use 2.43902 as your tax rate

This is 615 * .0243902 = 15.00

I'm wondering now if the PST GST is wrong. What would the correct percentage to get back 1/2 the GST for 5% GST and 8% PST?

Thank you.

See:

http://www.softrak.com/resources/technicaltips/TaxInclusiveDistributions.xls