Friday, October 19, 2018

PST Expenses Tax Account Displays Type as Expense Instead of Other Current Asset

In a Canada Edition, NetSuite automatically creates a PST (Provincial Sales Tax) control accounts. In a OneWorld account, it is created whenever a new Canada nexus is saved. The tax control account is set to 'Tax Account Type' = Purchase. Normally these types of control accounts are mapped to an "Other Current Asset" type of account. However, as per Canadian taxation Provincial taxes paid to a vendor are not recoverable. This is the reason why account like PST Expenses AB, PST Expenses NS and PST Expenses ON are mapped to an "Expense" type of account.

Note:  If the tax control account is manually created this the tax account will be mapped to an "Other Current Asset" type of account instead. 

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