I don't use AutoEntry and have never seen any client's files who use it either.  However, my understanding is that the program does OCR on the receipt you are paying and creates the best entry for it in your system.

For a $100 receipt the tax may be 5% GST and 7% PST.  Is it possible the entry you are posting will be $107 as the expense and the $5 goes to GST Paid?  If so, there is nothing wrong with this because when you pay PST, it is a company expense, not a tax to be remitted to the province.

If it doesn't do this, then do you have the opportunity to make a change to the entry as you are validating it prior to recording in your books?

PST becomes part of COGS as you are not charging it.  If you were charging PST you should break it out so that you can deduct PST paid from PST charged to remit the net amount.

In which province is PST refundable like the GST/HST?

If you are charged PST on a product you are reselling you can deduct that from your PST remittance in BC

Sorry I read your instructions that it was standard that all PST paid was refundable, and not just when someone hasn't done their paperwork properly.

Sorry I wasn't clear in my first post.

I just checked the PST remittance form for BC, and there is no line for such a deduction.  The mechanism in BC is that you are supposed to get the vendor to NOT charge you PST, and if they decide to charge you PST anyway, you are supposed to fill in a separate request for a refund (usually a FIN355) - which must be accompanied by copies of all the relevant invoices where PST was charged.

If you are routinely deducting PST paid on products purchased for resale on your BC PST return, please talk this over with your accountant - your procedures could be leaving you open to a really nasty surprise if you are audited.

However, if you are being billed for PST that you will eventually be claiming a refund on, then you are correct that it needs to be isolated in a PST refundable account.

As your business does not collect PST, this is a moot point.

Hi bryan bateman,

Here's a KB resource on how to setup sales taxes in Sage 50 CA.

Hope this helps!
Erzsi

Hi again bryan bateman,

In case you're using our cloud based Sage Business Cloud Accounting Software, then the steps are different and can be found here.