Greetings to all!
In Mr.Accounting, we have
Goods & Services Tax (GST) module to comply with GST requirements that started on April 2015.
The addition of GST functions allow tax amount to be automatically calculated for each transaction based on the tax code. The tax amounts are added up and automatically included in the GST-03 form, which can be generated in this module.
There are few steps on how to do tax setting using Mr. Accounting software :
This
screen displays the preset tax codes that are based on the recommendation by
the Malaysian Customs.
The
tax codes can be divided into purchase and supply tax codes. The tax codes under Both are old tax codes for Sales and Service tax which should not be used.
The
default preset tax codes, description and tax rates are as below:
Note:
Tax codes are only suggested by the government and used for their tracking
purposes. It is recommended to use the standard tax codes recommended by the
government, but the most important thing is to ensure that the final tax
payable/refundable figure is accurate in the GST-03 Return form.
Tax Settings Quick
View screen
Transaction (for Tax Settings)
You can use the Transaction button in the Quick View screen to display a list of all
transactions with the selected tax code. You may need to use this function to
check why there is an outstanding tax amount even after you have reconciled and
submitted the GST Return form
A new window pops out showing the transaction history for
this tax code as below.
Edit Tax Codes
Double click on tax codes
or select a tax code and select Record.
Tax Code: Enter the name of the tax
code
Description: Type in a description that
will appear in the Quick View and in the magnifying glass selection screen
Tax Rate: This is to configure the tax
rate for this tax code. This is used to calculate the tax amount for
transactions using this tax code. The current rate is 6% for GST chargeable
transactions and 0% for transactions not chargeable to GST.
Tax Category: This is to set which
field in the GST
Return form that amounts for this tax code are posted to. For
example, if you set this to “GST-Std Rated” and “Supply Tax Type” then this
amount is posted to the 5a) and 5b) fields in the GST Return.
Tax Type: This categorises the tax code
into either purchase or supply. This affects the transactions that you can tax
code under. For example, if you select the Supply Tax Type, then this tax code
can only be selected under sales (i.e. customer-related) and receipts
transactions such as Cash Book Receipt, Sales
Entry etc.
General Ledger Posting: This is to set
which GL code the amount for this tax code is posted to. This GL code is a
control account for input tax/output tax under 3. Liabilities, or disallowed
from claiming tax account under 7. Expenses.
Note: The GL posting is not the same as the tax category field
above.
GL posting affects the GL code
for posting tax amounts in the General Ledger, whereas Tax Category affects
which field the amount is posted to in the GST Return form in the GST module.
Show In Search/ In Use for tax codes
Only those Tax Codes
that have been ticked for Show in Search
will show up when you click on the magnifying glass to select tax codes [see example in Cash
Book Payment below].
If Show in Search is ticked,
then the In Use column in the Tax
Settings Quick View screen will be ticked also.
Tax Link to GL
You
can use this function to link a tax code to an income or expense GL code, which means that this tax code is
automatically selected after you select the linked GL code.
Example: Link the OP tax code to director fees GL code (an expense item)
After you have linked
the tax code (OP) to director fees (71300):
When you select Director Fees as 71300 in GL
code in Cash Book Payment, then the Tax Code will be automatically
set to OP.
This prevents you from using the wrong tax code for that GL
code, and saves you data entry time.
This is how easy to do tax setting using Mr. Accounting software :)
