ANS-0240 · SUITETAX & TAX MANAGEMENT
How to Correct NetSuite’s Incorrect Tax Control Account for PST on Expenses
Address an issue where NetSuite incorrectly defaults a Tax Control Account to an Expense type instead of a Current Asset or Liability account.
Short answer
When NetSuite incorrectly creates an Expense account for a Tax Control Account, manually create a new Tax Control Account. NetSuite will then correctly generate an Other Current Asset account. Subsequently, update all relevant Tax Codes to use this new, correct account. Inactivate the erroneous Expense account instead of deleting it.
Scenario
Users may encounter a situation where NetSuite automatically creates an Expense account when setting up a new Tax Control Account for Canadian taxes, such as PST on expenses. This behavior contradicts NetSuite's own system message, which indicates that Tax Control Accounts should be either Liability or Current Asset accounts.
Solution
To resolve the issue of an incorrectly created Expense account for a Tax Control Account, follow these steps:
Navigate to Setup->Accounting->Tax Control Accounts.
Create a new Tax Control Account. NetSuite will then correctly generate an Other Current Asset account for this purpose.
Update all relevant Tax Codes to utilize the newly created and correct Other Current Asset account.
Inactivate the original, erroneous Expense account. It is not possible to delete this account.
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