EMP Configuration - Tax

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.

Sales (Output Tax)

This is to set the configuration for Sales Tax. This configuration effect Sales related transactions for example, Invoice, Cashsale, Sales Return etc. If a particular branch in the system is not 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)

Purchase (Input Tax)

This is to set the configuration for Purchase Tax. This configuration effect Purchase related transactions for example, GRN, Credit Memo, Purchase Return etc. If a particular branch in the system is not 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"

Withholding Tax (Customer)

This refers 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 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
	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