In Manitoba Canada we expense the PST portion to the same account as the original expense not to a separate tax expense account.
I would like the MB PST to go to the original expense account as opposed to a separate tax expense account as it is now at year end I have to go back to that account and move everything to the appropriate expense for year end purposes. very time consuming
Luis Giraldo commented
I'll add to this - BC and SK PST all behave the same. PST is not a recoverable tax, and should not be tracked in a PST expense GL. It should be tracked along with the item.
I purchase a $100 widget for use in my business as a business expense, and pay 5% GST and 7% PST.
The transaction journal **should** show:
GL Account Widget Expenses: $107 ($100 plus $7 PST) Debit
GL Account Payable: $112 Credit
GL Account GST Tax Paid: $5 Debit
It appears that you are putting both taxes into the "Tax Paid Expense" GL account, which is a very inefficient way of tracking it, as it will require doing a journal entry for *every single expense* in order to move the PST from the tax paid expense account into the GL account of the expense.
Both Xero and QuickBooks Online have figured this out years ago, and this is the one thing preventing me from moving my company to Zoho One