Published : 2018 May 25

Transcription

1 SIMBIZ ECO GST Amendment from 6% to 0% User Guide Published : 1

2 Table Of Content 1.0 Introduction What user needs to do in System? How to configure tax rate from 6% to 0% in system? How does Tax Rate Affect Transaction? Sales Order and Delivery Order Generate to Sales Invoice Purchase Order and Goods Received Note Generate to Purchase Invoice Credit Note Issued After 1/6/2018 for Invoice issued before 1/6/ How does the tax rate in Staff Claim Entry work? Changes in GST report 25 Reference Source 2 7 2

3 1.0 Introduction Ministry of Finance Malaysia (MoF) has announced that all GST rate would be reduced from the current 6% rate down to 0% effective on 1st June Enhancement has been made in the system to match the changes and controls are added to prevent human error. 1.1 What user needs to do in System? The configuration of the tax rate being substituted from 6% to 0% has been preset for you and that being said, there is no configuration needed from your end. However, kindly note that filing and return of GST still need to be done as usual. The guides below mainly highlight what are the enhancement made to cater the latest GST changes. 1.2 Shall I add SR-0 Tax Code? Since system handles the rate transition automatically, you are not required to create new tax code. 3

4 2.0 How to configure tax rate from 6% to 0% in system? 1. Go to Settings > Accounting Settings > Tax Codes. 4

5 2. All tax code will be shown in listing as such: 3. Click the edit icon of any tax code for edit tax data or add new effective date of tax rate. A box will pop out showing the Tax Rate history. Default rate here is the original rate prior to any amendment. It cannot be edited as it is already used in transactions dated before 1st June

6 4. Press Add New Button as shown on image below to add new tax rate and Save. 5. After close the Tax Rate window, new tax rate will appear on the tax list based on the effective date preset. 6

7 3.0 How does Tax Rate Affect Transaction? Let s take a look on how the tax affects the transaction. For example, based on the Standard-rated supplies with GST charged (SR) tax rate has been set as 6% by default, so when a Sales Invoice date is selected before 1 st June 2018 (i.e. 31 st May 2018), the tax amount appears as 6% of the amount as shown below. 7

8 However, if you change the invoice date to 1 st June 2018 onwards, the tax amount will be 0.00 as shown below based on the rate that has been set as 0% effective on that date. (refer to the first image of 2.0 subtopic) Note: If item is selected from Item selection, the price will be based on the standard selling price preset or in price list, if any. Since u sers are allowed to define the effective date for new tax rate, transaction will get a different tax rate based on the settings preset. That being said, whenever the document date is being changed from one date to another and the date tends to be of different rate defined, a box will pop out displaying 3 different options as shown below: 8

9 Apply price based on date : When this button is clicked, system will update the price of the item according to the Price list (standard or any that you have set as higher priority) and also, update the tax rate as defined earlier in Tax Code screen. For example, the tax rate for output tax SR has been set as shown below. An invoice is issued out on today s date which is 31/5/2018 with respective item at RM200 per unit. However, when the document date is changed to 1/6/2018, a box pops out showing 3 options to choose from. So, if user click Apply price based on date button, the price will be updated based on the Price List and as well as the tax rate based on the one that you have defined earlier. 9

10 For example, this Product is listed in a Price list dated 1/6/2018 at RM300 per unit, and the tax rate of this date has been set as 0%. Thus, on the invoice, the item price is changed automatically to RM300 with 0.00 tax amount 10

11 Remain current price : This option is to remain the price as what you have keyed in and the tax rate on the other hand will be updated as defined earlier in Tax Code screen. For example, an invoice is issued on 31/5/2018 and the unit price of the item according to its Price list is RM200. However, the invoice date is changed to 1/6/2018 and when Remain current price button is clicked, the price of the item will remain as at 31/5/2018 but the tax amount is updated as at 1/6/

12 Looking at the price list, the item s price should be RM300 rather than RM200 since the invoice date is dated 1/6/2018 but if Remain current price button is clicked, user gets to keep the price that they want. Don t change the date : Click this and your document date will remain as it is. For example, the invoice date is changed from 31/5/2018 to 1/6/2018, so when this button is clicked, the document date remains at 31/5/2018. Notes: Item price will be determined by its Standard Price (Sales or Purchase) or its Price List excluded the tax amount when tax rate is substituted to 0% regardless it is inclusive or exclusive of GST. 12

13 Example: [Tax Inclusive] 31/5/2018 Product A price : RM tax inclusive - RM = RM Before Tax Amount & RM Tax Amount. - Item price is sold at RM /6/2018 Product A price : RM tax inclusive - RM = RM Before Tax Amount & RM 0.00 Tax Amount. - After tax is substituted to 0% rate, item s price still remains at RM as well. [Tax Exclusive] 31/5/2018 Product A price : RM tax exclusive - RM = RM Before Tax Amount & RM Tax Amount. - Item price is sold at RM /6/2018 Product A price : RM tax exclusive - RM = RM Before Tax Amount & RM 0.00 Tax Amount. - After tax is substituted to 0% rate, item s price will be RM only. 13

14 4.0 Sales Order and Delivery Order Generate to Sales Invoice The enhancement made also covers the generate function in Sales Order and Delivery Order. There are two cases highlighted in this recent update which are: (1) When a Delivery Order (DO) is generated to Sales Invoice (SI), the tax rate of the Invoice will be as of the rate used in the Delivery Order. and (2) When a Sales Order is generated to Sales Invoice, the tax rate of the Invoice will be based on the rate that has been preset according to the Invoice date. These two can be summarised in the table below: From Document To Document SI Tax Rate should be (%) DO with 6% Tax Rate (dated before 1/6/2018) Generate to SI (dated 1/6/2018 onwards) 6% Tax Rate SO with 6% Tax rate (dated before 1/6/2018) SI (dated 1/6/2018 onwards) 0% Tax Rate Detailed explanations can be seen as follow: (1) When a Delivery Order (DO) is generated to Sales Invoice (SI), the tax rate of the Invoice will be as of the rate used in the Delivery Order. For example, if the DO is issued on the 25/5/2018 as shown below 14

15 and then it s generated to a SI later on dated 1/6/2018 the tax rate of the SI will be following the rate used in the DO. 15

16 (2) When a Sales Order is generated to Sales Invoice, the tax rate of the Invoice will be based on the rate that has been preset according to the Invoice date. For example, if the SO is issued on the 25/5/2018 as shown below 16

17 and then it s generated to a SI later on dated 1/6/2018 the tax rate of the Invoice will be based on the rate that has been preset according to the Invoice date. 17

18 5.0 Purchase Order and Goods Received Note Generate to Purchase Invoice Likewise for Account Payable, the enhancement made also covers the generate function in Purchase Order and Goods Received Note. There are two cases highlighted in this recent update which are: (1) When a Goods Received Note (GRN) is generated to Purchase Invoice (PI), the tax rate of the Invoice will be as of the rate used in the GRN. And 2) When a Purchase Order is generated to Purchase Invoice, the tax rate of the Invoice will be based on the rate that has been preset according to the Invoice date. These two can be summarised in the table below: From Document To Document PI Tax Rate should be (%) GRN with 6% Tax Rate (dated before 1/6/2018) Generate to PI (dated 1/6/2018 onwards) 6% Tax Rate PO with 6% Tax rate (dated before 1/6/2018) PI (dated 1/6/2018 onwards) 0% Tax Rate 18

19 Detailed explanations can be seen as follow: (1) When a Goods Received Note (GRN) is generated to Purchase Invoice (PI), the tax rate of the Invoice will be as of the rate used in the GRN. For example, if the GRN is issued on the 25/5/2018 as shown below and then it s generated to a PI later on dated 1/6/2018 the tax rate of the PI is determined by the rate used in the GRN. 19

20 2) When a Purchase Order is generated to Purchase Invoice, the tax rate of the Invoice will be based on the rate that has been preset according to the Invoice date. For example, if the PO is issued on the 25/5/2018 as shown below 20

21 And then it s generated to a PI later on dated 1/6/2018 the tax rate of the Invoice is determined by the rate that has been preset according to the Invoice date. 21

22 6.0 Credit Note Issued After 1/6/2018 for Invoice issued before 1/6/2018 In such cases where invoice is issued prior to the tax rate changes from 6% to 0% and the credit note was issued to set off the invoice, the tax rate of the Credit Note shall be based on the rate used in the Invoice. For example, a Sales Invoice was issued on 25/5/2018 with its standard tax rate of 6% and later on a Credit Note was issued dated 1/6/2018 for the invoice issued above. 22

23 Assign correct set off details such as the Account and the tax code. Then, tick the amount that you would like to knock off. Click Save. The tax rate in the Credit Note is determined by the rate that has been incurred in the Sales Invoice. 23

24 7.0 How does the tax rate in Staff Claim Entry work? Staff claim entry could consist of different claims from different period so how is it handled by the system? The tax rate of the staff claim depends on the receipt date of the claims and also based on the preset rate in the Tax Code. It is not based on the document date of the Staff Claim Entry itself. For example, a staff claim Entry is issued on 3/6/2018 but in the item line, the claims are all from different period as shown in the diagram below: As shown above, the document date of the Staff Claim Entry does not determine the tax rate of the individual claims. However, the Date of Receipt actually defines the tax rate based on the rate preset in the Tax Code as shown below: 24

25 8.0 Changes in GST report The only difference that it makes in GST report after enhancement is that under Tax Code Transaction Detail filter, there are two additional functions added which are Tax Amount and Tax Code drop down menu. You can filter out based on the Tax Amount in which you can opt to see all transactions, those with and without tax amount as well. Note: Please remember to select correct date range when generate report. Also, you get to choose to filter the tax code that you would like to see in the details report. After that, just click Transaction Detail button to preview the report. As 25

26 As shown in the report below, transactions that is incurred with tax rate 0% will display 0.00 tax amount and vice versa for tax rate 6%. With this details report, you get to track back all transactions carried out prior to 1/6/2018 to 1/6/2018 onwards to see if the correct tax rate is applied to the transactions. It could be that due to human error, the SR Tax rate applied to transactions before 1/6/2018 is 6% and vice versa so this detail report plays an important role to track back if there is any transaction that needs to be revised back. 26

27 Reference Source 1. RMCD Official Website : (FREQUENTLY ASKED QUESTIONS (FAQ) TRANSITIONAL 6% - 0% (UPDATED : , 10:30AM)) 27