Go to Control Panel > EMP Configurations > Tax
Tax is configured separately depending on different types.
General Tab
- Item default Tax is used when new items are added to the system. For items with different tax rate than the default / usual one, it can be edited at Edit Item
- Goods and Service Tax Abbreviation is used to make the system user friendly. User can select from the dropdown list. Or manually key in if the tax name is not available on the drop down list.
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- Choose Tax Country
- Choose the Goods and Service Tax Abbreviation
Sales (Output Tax)
- This is to set the configuration for Sales Tax. This configuration effect configuration effects Sales related transactions for example, : Invoice, Cashsale, Sales Return etc. If a particular branch in the system is not
- Select the Branch which subject to Output Tax , it can be excluded through configuration.
- A valid default GLCode is needed to charge this output tax during the transactions.
- During the sales whether the item price keyed in by cashier is including or excluding tax can be set here as well.
- Rounding option is available to go for accuracy (higher decimal points) or be consistent with accounting (standard upto 2 decimal points)
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- or implement Tax
- Select Default Item Tax Code, Default Tax Codes → for sales
- Tick to Enable Inclusive on Item Price → Recommendation: Retailer used INCLUSIVE TAX method
Purchase (Input Tax)
- This is to set the configuration for Purchase Tax. This configuration effect effects Purchase related transactions for example, : GRN, Credit Memo, Purchase Return etc. If a particular branch in the system is not
- Select the Branch which subject to Input Tax, it can be excluded through configuration.
- A valid default GLCode is needed to charge this input tax during the transactions.
- If a filing method is used for the Tax which requires a different GLCode to be used to charge the Tax after filing is done. This is currently practiced in Thailand VAT.
- During the purchase whether the item price keyed in by user is including or excluding tax can be set here as well.
- Rounding option is available to go for accuracy (higher decimal points) or be consistent with accounting (standard up to 2 decimal points)
- Usually Input tax will be excluded so will uncheck "Enable"
Tax or implement Tax - Select Default Item Tax Code, Default Tax Codes → for purchase
- Tick to Enable Inclusive on Item Price → Recommendation: Retailer used EXCLUSIVE TAX method
- Default GL for Forex Gain or Loss can be configured → automate the Currency
Withholding Tax (Customer)
- This refers to Used for Thailand → refer to the tax withhold by customer during the payment (Receipt function). This is used in Thailand.
- Branches and default GLCode can be configured
Withholding Tax (Supplier)
- This refers to the tax that can be withheld during supplier Used for Thailand → refer to the tax withhold by suppluer during the payment (Payment Voucher). This is used in Thailand.
- Branches and default GLCode can be configured
| Tab | Field | Description | Recommended Value |
| General | Tax Country | This will determine how GST is processed and reported. Also, by setting this, all tax codes defined by Royal Customs will be activated automatically | MALAYSIA |
| Goods and Service Tax Abbreviation | This is for labelling. Default value is “Tax” | GST | |
| Sales (Output Tax) | Branch | Normally, if a company is subjected to GST, all its branches will be subjected to GST, except those in Tax Free Zone. | All branches subjected to GST. |
| Item’s Default Output Tax Code (Sales) | When this is enabled, when adding new item from Inventory > Item > Add Item, default values : Tax Option = Tax Applicable, Input Tax Code = the chosen GST Code | SR | |
| Default GL Code | This GL Code will be used to record all Output GST during sales transactions. Ensure this GL Code has already been added into the system first. | gst_Output | |
| Default GL Code for Bad Debt Relief | When a Supplier Invoice is declared as bad debt, it will increase the Output Tax. For more information, refer to Supplier (AP) Bad Debt Relief | badDebtAP | |
| Default GL Code for Bad Debt Paid | When a Supplier Invoice is declared as bad debt but later on paid, it will increase Input Tax. For more information, refer to Supplier (AP) Bad Debt Paid | badDebtAP_Paid | |
| Default GL Code for Deposit | This GL Code will be used to record the deposit’s GST. For more information, refer to Deposit from Customer | gst_Output_Suspended | |
| Item price include tax rate | By default, item’s selling price is excluding GST. Enable this if the amount keyed in by cashier is inclusive of tax amount. Example : Item Selling Price = Rm100, GST = 6%, Qty sold = 1 If this Option is Disabled, Invoice will show : Sub Total = Rm100, GST = Rm 6, Grand Total : Rm106. If this Option is Enabled, Invoice will show : Grand Total = Rm100, GST : Rm6 | ||
| Tax Rounding Option | Decides how the GST amount should be rounded. Round half-up : 0.001 - 0.004 round to 0.00, 0.005 - 0.009 round to 0.01. Round up : 0.001 - 0.004 round to 0.01, 0.005 - 0.009 round to 0.01 | 2 decimals, round half-up | |
| Purchase (Input Tax) | Branch | Normally, if a company is subjected to GST, all its branches will be subjected to GST, except those in Tax Free Zone. | All branches subjected to GST. |
| Item’s Default Output Tax Code (Sales) | When this is enabled, items added to PO / GRN will by default, follow the GST Code configured | TX | |
| Default GL Code | This GL Code will be used to record all Input GST during purchase transactions. Ensure this GL Code has already been added into the system first. | gst_Input | |
| Default GL Code for filing | This does not need to be set for Malaysia GST at the moment. | <blank> | |
| Default GL Code for AR Bad Debt Relief | When a Customer Invoice is declared as bad debt, it will increase the Input Tax. For more information, refer to Customer (AR) Bad Debt Relief | badDebtAR | |
| Default GL Code for AR Bad Debt Recovered | When a Customer Invoice is declared as bad debt but cleared later, it will increase the Output Tax. For more information, refer to Customer (AR) Bad Debt Recovered | badDebtAR_Recovered | |
| Default GL Code for IRR Adjustment (Advance only) | This GL Code will be used to record GST amount for IRR Adjustment. For more information, refer to Partial Exemption (IRR) | gst_Control | |
| Default GL Code for GST Input Not Due | |||
| Default GL Code for Blocked GST Input Tax | This GL Code will be used for unclaimable Input Tax which will be expenses for the company | gst_Expenses | |
| Default GL Code For Filing Tax on Imported Goods | This GL Code will be used for Default Foreign Exchange Gain / Loss Tax Code | ||
| Item price include tax rate | By default, item’s purchase price is excluding GST. Enable this if the amount keyed in by procurement staff is inclusive of tax amount. Example : Item purchase Price = Rm100, GST = 6%, Qty sold = 1. If this Option is Disabled, GRN will show : Sub Total Rm100, GST Rm 6, Grand Total Rm106. If this Option is Enabled, GRN will show : Grand Total Rm100, GST Rm 6 | ||
| Tax Rounding Option | Decides how the GST amount should be rounded. Round half-up : 0.001 - 0.004 round to 0.00, 0.005 - 0.009 round to 0.01. Round up : 0.001 - 0.004 round to 0.01, 0.005 - 0.009 round to 0.01 | 2 decimals, round half-up | |
| Withholding Tax (Customer) | Not applicable to Malaysia | ||
| Withholding Tax (Supplier) | Not applicable to Malaysia |