country specific update for canada

Microsoft Dynamics®

AX

Country-specific update for

Canada

White Paper

This white paper describes the country-specific update released for Canada for Microsoft Dynamics AX 2009 and 2009 SP1 in

Hotfix rollup 9744079.

Date: September 2009

https://mbs.microsoft.com/knowledgebase/KBDisplay.aspx?scid=kb;en-us;974409

2 COUNTRY-SPECIFIC UPDATE FOR CANADA

Table of Contents

Introduction ................................................................................................ 3

Electronic filing of Goods and Services Tax and Harmonized Sales Tax

returns ........................................................................................................ 3 Set up company information .................................................................................................. 3 Transfer GST/HST returns over the Internet ............................................................................. 4

Create sales tax entries for tax on acquisition........................................................................ 4 View GST or HST details in the sales tax transactions form ..................................................... 5 Generate the GIFT file ........................................................................................................ 5 GIFT file characteristics ...................................................................................................... 5 GIFT file components ......................................................................................................... 5

Forms .................................................................................................................................. 6 Modified forms ...................................................................................................................... 6 Reference ............................................................................................................................ 7

COUNTRY-SPECIFIC UPDATE FOR CANADA 3

Introduction

This white paper provides an overview of a Microsoft Dynamics® AX feature that is specific to users in Canada. It includes a description of the feature and procedural information needed to use the feature. You must select the Canada key to activate this functionality.

For more information about other regional features that apply to Canada, refer to the Applications and Business Processes Help. Information that is specific to Canada includes (CAN) in the title.

Electronic filing of Goods and Services Tax and Harmonized Sales Tax returns

This country-specific update pertains to Microsoft Dynamics AX 2009 and 2009 SP1.

Taxpayers in Canada use Form GST 34 to manually file Goods and Services Tax or Harmonized Sales Tax (GST/HST) returns and to remit payments to the Canada Revenue Agency (CRA). However, for the taxes calculated on acquired fixed assets, the CRA allows taxpayers to file and remit taxes electronically.

You can file GST/HST returns electronically using any of the following methods:

GST/HST Internet File Transfer (GIFT): This process involves uploading a text file that is generated by third-party accounting software. The file is uploaded to the CRA Web site. This method is the focus of this white paper.

Net file transfer: An Internet-based filing service that allows taxpayers to file their return directly over the Internet.

Electronic Data Interchange (EDI): A method of transferring data that taxpayers can use to file their returns directly to the CRA or through the services of a third-party provider.

Set up company information

When a company submits a request to CRA for an Internet file transfer, CRA provides a software

identification code. You must enter this identification code into the Company information form.

1. Click Basic > Setup > Company information to open the Company information form.

2. Click the Other tab, and enter the software identification code in the Software identification code field.

Note: The software identification code contains eight alphanumeric characters. The first two characters are alphabetic and the last six characters are numeric. You must enter a correct value in this field in order to process GST/HST returns, else a message is displayed.

3. In the Business number field, enter your company’s business registration number.

4. Click Tax registration to open the Tax registration form.

5. In the Tax account type field, select GST/HST.

6. In the Reference number field, enter the specific reference number provided by the CRA.

Note: The reference number specified in this form and the business number specified in the Company information form are collectively used as the company GST/HST account number.

7. Close the Tax registration form, and then close the Company information form.


Transfer GST/HST returns over the Internet

To electronically file GST/HST returns, you must first generate a GIFT file. This is a text file that contains the details required for filing the returns. After generating the GIFT file, you can upload it to the CRA Web site or include it as an attachment when filing returns through e-mail.

To process GIFT files, you must record the details of tax on acquisition in the Purchase order, Vendor invoice journal, and General journal lines forms. While posting the journal or invoice, you must enter the details of the asset on which the tax is calculated, and then select GST/HST amount type as Tax on acquisition.

Create sales tax entries for tax on acquisition

The details of the tax on acquisition are recorded in purchase orders, vendor invoice journals, and general journal lines forms. This process helps you to capture all of the required tax information for the GIFT file from the source documents.

1. Click Accounts payable > Common Forms > Purchase order details to open the Purchase order form.

2. Select the required purchase order line, and then click the Fixed assets tab in the lower pane.

3. Enter the fixed asset details for the selected purchase order. For more information on fixed assets see “Fixed assets (form)” and “Fixed asset value models (form)” in the Applications and Business Processes Help.

Note: The value Tax on acquisition is automatically displayed in the GST/HST field on the Setup tab.

4. Click Posting > Invoice to open the Posting invoice form.

5. Click OK to post the purchase order.

6. Press CRTL+S and close the Purchase order form.

7. Click Accounts payable > Journals > Invoices > Invoice journal to open the Journal form.

8. Create a new journal, and then click Lines to open the Journal voucher form.

Note: For more information about invoice journals, see “Journal voucher – Invoice journal (form)” in the Applications and Business Processes Help.

9. Press CTRL+N to create a new journal line.

10. In the Account type field, select Fixed assets, and then enter the journal line details.

Note: The value in the Tax on acquisition field is automatically displayed in the GST/HST field on the General tab.

11. In the Account field, select the fixed asset account number.

12. Click Post > Post to post the journal.

13. Close the Journal voucher form, and then close the Journal form.

14. Click General ledger > Journals > General journal to open the Journal form.

15. Create a new journal, and then click Lines to open the Journal voucher form.

Note: For more information about invoice journals, see “Journal voucher – General journal (form)” in the Applications and Business Processes Help.

16. In the Account type field, select Fixed assets, and then enter the journal line details.

Note: The value in the Tax on acquisition field is automatically displayed in the GST/HST field

on the General tab.

17. Click Post > Post to post the journal.


18. Close the Journal voucher form, and then close the Journal form.

View GST or HST details in the sales tax transactions form

Use the Sales tax transactions form (General ledger > Inquiries > Tax > Posted sales tax) to

view the details of the tax on acquisition that are saved in the Purchase order, Vendor invoice journal, and General journal lines forms. You can also view Tax on acquisition in the GST/HST field on the General tab.

Generate the GIFT file

1. Click General ledger > Periodic > GST/HST Internet File Transfer (GIFT) to open Generate GIFT file dialog box.

2. In the From date field, select the starting date of the reporting period.

3. In the To date field, select the ending date of the reporting period.

4. In the File name field, select the path and enter the name for the GIFT file.

Note: You can reference the reporting period in the file name to identify the files. The file extension of the GIFT file is .tax.

5. Click OK to export the GIFT file to the specified path.

GIFT file characteristics

The file is created in plain text.

The * character is used to delimit the field header and value.

The ~ (tilde) character is used to delimit each field.

The file begins with the SFT*AA###### field. It has no leading spaces or characters.

All date values are in the format YYYYMMDD.

All numeric values are a minimum of three digits. For example, the value 0 is displayed as 000 and the value 500 is displayed as 500000.

All numeric values are a maximum of 11 digits, with the exception of Sales and other revenue (101).

GIFT file components

The generated GIFT file contains the following components:

Software identification code (SFT) – This value, which is provided by the CRA, is retrieved from the Software identification code field on the Other tab in the Company information form.

Transaction type (TRS) – The value for the transaction type will always be GST34.

Account number (ACN) – A 15-character value. The first nine digits are taken from the Business number field on the Other tab in the Company information form. The last four digits correspond to the reference number in the Tax registration form.

Reporting starting date (SDT) – The starting date of the reporting period.

Reporting end date (NDT) – The ending date of the reporting period.

Sales and other revenue (101) – The sum of the values in the Amount origin field for the specified reporting period, based on the value in the Source field on the Overview tab in the Sales tax transactions form.

Total GST/HST adjustment (105) – The sum of the values in the Sales Tax amount field for the specified reporting period, based on the value in the Source field in the Sales tax transactions

form.


Total ITC (Input tax) adjustments (108) – The sum of the values in the Amount origin field for the specified reporting period, and purchase source document field from the Sales tax transactions form.

Net tax (109) – The difference between the Total GST/HST adjustment and Total ITC (Input tax)

adjustments. If the difference is negative, a minus sign will precede the value.

Paid by installments (110) – The sum of the values in the Amount origin for the specified reporting period, where the Origin field is specified as Payment on the General tab in the Sales tax transactions form.

Rebates (111) – The sum of the values in the Sales tax amount field, where the GST/HST type field is specified as Rebates (Line 111) in the Sales tax transactions form.

Tax due on acquisition of Real property (205) – The sum of the values in the Sales tax amount

field, where the GST/HST type field is specified as Tax on acquisition on the General tab in the Sales tax transactions form.

Other GST/HST to be self-assessed (405) –The sum of the values of the Sales tax amount field, where the GST/HST type field is specified as Self-assessment (Line 405) on the General tab in the Sales tax transactions form.

Refund claimed (114) – The refund is based on the following calculation:

Refund claimed (Line 114) = Total GST/HST adjustment (Line 105) – Total ITC (Input tax) adjustments (Line 108) – Rebates (Line 111) + Tax due on acquisition of Real property (Line 205) + Other GST/HST to be self-assessed (Line 405).

Amount owing/Payment enclosed (115) – The amount owing is based on the following calculation:

Amount owing/Payment enclosed (Line 115) = Total GST/HST adjustment (Line 105) – Total ITC (Input tax) adjustments (Line 108) – Rebates (Line 111) + Tax due on acquisition of Real property (Line 205) + Other GST/HST to be self-assessed (Line 405).

EOD –An identifier for the end of the transaction file.

Forms

This section contains information about the new forms used for electronic filing of GST/HST returns.

Form name and locator Description

Tax registration (form)

Basic > Setup > Company information > Tax registration

Tax account type field

Select the tax account type.

Reference number field

Enter the specific reference number provided by CRA.

Generate the GIFT file (form)

General ledger > Periodic > GST/HST Internet File Transfer (GIFT)

From date field

Select the starting date of the reporting period.

To date field

Select the ending date of the reporting period.

File name field

Select the path and enter the file name of the GIFT file.

Modified forms

This section contains information about the modified forms used for electronic filing of GST/HST returns.

Form name and locator Description


Company information (form)

Basic > Setup > Company information

Tax registration button

Open the Tax registration form to specify the tax account type and reference number details.

Business number field

Enter your company’s business registration number.

Software identification code field

Enter the software identification code provided by CRA.

Purchase order (form)

Accounts payable > Common Forms > Purchase order details

GST/HST field

Select the GST/HST amount type.

Journal voucher (form)

Accounts payable > Journals > Invoices > Invoice journal > Lines

GST/HST field


Journal voucher (form)

General ledger > Journals > General journal > Lines

GST/HST field


Sales tax transactions (form)

General ledger > Inquiries > Tax Posted sales tax

GST/HST field

The GST/HST amount type.

Reference

Canada Revenue Agency (CRA) Web site

http://www.cra-arc.gc.ca/

http://www.cra-arc.gc.ca/


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