1.1 Go to Accounting > Maintenance > Configuration > GL Category > Create
| Code | GL Name | Description | Ledger | Category | Post to Section |
|---|---|---|---|---|---|
| gstOutput | GST Output Tax | Current Liabilities | Credit | real | CurrentLiabilities |
| gstInput | GST Input Tax | Current Asset | Debit | real | CurrentAssets |
| gstExpenses | GST Expenses | Expenses | Debit | temp | GeneralExpenses |
1.2 Accounting > Maintenance > Configuration > Add GL Code
| GL Short Hand | GL Code | GL Name | GL Category | GL Code Name 1 | Remark |
|---|---|---|---|---|---|
| gst_Output | gst_Output | GST Output Tax | Current Liabilities | GST Output Tax | |
| gst_Input | gst_Input | GST Input Tax | Current Assets | GST Input Tax | |
| gst_Output_Suspended | gst_Output_Suspended | GST Output Tax | Current Liabilities | GST Expenses | |
| badDebtAP | badDebtAP | Account Payable | Current Liabilities | Account Payable | |
| badDebtAP_Paid | badDebtAP_Paid | Account Payable | Current Liabilities | Account Payable | |
| badDebtAR | badDebtAR | Account Receivable | Current Assets | Account Receivable | |
| badDebtAR_Recovered | badDebtAR_Recovered | Account Receivable | Current Assets | Account Receivable | |
| gst_Contra | gst_Contra | GST Input Tax | Current Assets | GST Input Tax | Applicable for Imported Goods |
| gst_Control | gst_Control | GST Expenses | General Expenses | GST Expenses | Applicable for IRR adjustment |
1.3 Control Panel > System Admin > EMP Configurations > Tax
| 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 | ||
| 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 |
1.4 Accounting > Maintenance > Configuration > Tax Configuration
Once you have chosen Tax Country to be Malaysia, Tax Configuration will be automatically be setup with all GST Codes applicable to Malaysia, you can view the list from List Tax Config.
You can choose to inactivate whichever GST Codes not in used from Edit Tax Config
You can add on however many GST Codes from Add Tax Config. Below are the field explanations :
| Field | Description | Compulsory |
| Tax Code | This value has to be unique. It will be used through out the system | Yes |
| Tax Code Description | Explanation of the Tax Code | Yes |
| Tax Type | GST-MY INPUT for input tax, GST-MT-OUTPUT for output tax | Yes |
| Tax Type Description | Explanation of the Tax Type | No |
| Tax Rate | The tax rate associated with this Tax Code | Yes |
| Standard Tax Code | Used for reporting | No |
| Major Industry Code | For GST-Form3 section 19, refer to Department of Statistics Malaysia | No |
1.5 Inventory > Item > Add / Edit Item > Pricing and Costing Tab
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Should the Tax Code set here is different from the one set in EMP Configuration, the Tax Code set here will take precedence.
| Field | Recommended Value |
| Tax Option | Tax Applicable |
| Input Tax Rate | Tax Code = TX |
| Output Tax Rate | Tax Code = SR |
To update existing item listing, please refer to Item gst
1.6 Supplier > Maintenance > Create / Edit Supplier
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The Tax Code set here will take precedence over the Tax Code set in EMP Configuration (section 1.3) and Item (section 1.5)
| Field | Sample Value |
| Tax Code | IM |
| Tax Type | GST-MY-INPUT |
| Tax Rate | 0 |
More on GST on Imported Goods
1.7 Customer > Maintenance > Create / Edit Customer
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GL's which are meant for Capital Goods Acquired, Bad Debt Relief and Bad Debt Recovered, will need to be tagged to the correct Tax Return Section so that the value can be reported accurately in GST Tax Return Form. More on Generation of GST-03 (without support for TX-RE). :
| GL | Tax Return Section |
| For Capital Goods Acquired | 16_CAPITAL_GOODS_ACQUIRED |
If no tax_code is set for supplier(1.4)/customer(1.5), it should follow the tax_code set at item level(1.3). However, Item level have 2 different tax_code and tax_code_output for purchase and sales side. So, if the page is for purchase txn, it should select tax_code, and if the page is for sales txn, it should select tax_code_output. Then again, if neither is available, it should follow branch level tax_code(1.1). Lastly if even that is not available, it should be assigned to blank.
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