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Non-recoverable Sales Tax (PST) is acting like a recoverable sales tax, but only for Asset Purchases

youngstreetyoungstreet Member Posts: 3

Hi there,


I live in BC where we have both two sales taxes: GST (recoverable) and PST (non-recoverable).


When I record an EXPENSE using Wave (see my Shopify transaction), you can see only GST is marked as recoverable, even though I accounted for both taxes in my entry. For expenses, my sales taxes are behaving as expected.


However, when I record an ASSET PURCHASE (see my Apple transaction where "Computer - Hardware" is an asset account for me), both GST and PST are marked as recoverable. You can see the "PST + 1" next to the transaction. This is causing my asset accounts to no longer balance.


You can see that under my settings, PST is not checked as recoverable.


Does anyone have a similar experience and know of a fix or workaround? For me, I have simply not recorded the PST for my asset purchases.


Thanks in advance!



Asset Purchase Transaction:




Expense Transaction:




Sales Tax Settings:

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Comments

  • JamieDJamieD Administrator Posts: 1,156 admin

    @youngstreet Hmm, this is interesting here... but I just need a bit of clarification, where are you seeing that the asset accounts are no longer balancing because of the PST tax associated with the transaction? Also, could you please attach a screenshot of the Sales Tax report as well? I just want to see if this is also appearing in that location.

  • youngstreetyoungstreet Member Posts: 3

    Thanks for the reply.

    I just created a fake transaction for $1120 ($1000 + 5% GST + 7% PST) towards an asset purchase. Here is the sales tax report. It is showing I have a net tax owing for PST of -$70, which can't be since PST is not recoverable.

    My account balances don't balance when I look up "Reports" and then "Account Balances".

  • CharlotteCharlotte Member Posts: 671 admin

    Hi @youngstreet ! Thanks for your patience. It looks like this is a known issue specifically with asset accounts and sales taxes. I'm syncing up with our technical support team to make sure your report is on their radar. We'll update you here as soon as we have news to share, but I don't have a specific ETA at this time.

  • youngstreetyoungstreet Member Posts: 3

    Thanks for the update Charlotte!

  • phinestphinest Member Posts: 3

    Do you have any update here? I am having similar problem. In fact it seems when the account was migrated it created PST recoverable entries for all old asset transactions and then did migration adjustment entries to undo them.

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hey @phinest , can you send us some screenshots of this? Particularly we'd be looking for the PST recoverable entries that were created due to migration, and why you think the migration adjustment entries then undoes them. Thanks!

  • phinestphinest Member Posts: 3

    I have found a workaround for the current year by creating bills for the asset purchases. But for old entries which were migrated it still has weird entries.
    1. First it has marked the PST as recoverable
    2. Then it created the adjustment entry to make it zero.

    See image below for 2018 PST Tax report

  • AlexLAlexL Member Posts: 2,869 ✭✭✭

    Hey @phinest , I see that you're actively working on a resolution through tickets with a member of our support team. I'll let your conversation continue there as this seems to be a tad more complex and I think this topic will benefit more from having 1 on 1 direct support.

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