Supplier Consignment

GST treatment for CONSIGNMENT SALES

http://gst.customs.gov.my/en/rg/SiteAssets/industry_guides_pdf/Revised/F2Retailing%20Guide%20130114.pdf

• In the case of consignment goods, the basic tax point with regard to the time of supply is at the time when it becomes certain that the taxable supply has taken place or twelve months after the removal of goods, whichever is the earlier.

• 22. Consignment sale is a trading arrangement in which a consignor sends goods (consignment goods) to a consignee who pays the consignor only when the goods are sold. The basic tax point for consignment goods is the date of sales statement issued by the consignee or twelve months after delivery date of the goods whichever is the earlier.
•  23. If the consignor issues a tax invoice within 21 day from basic tax point, then time of supply becomes the date of tax invoice issued. However if tax invoice issued after 21 days period, then the time of supply is the basic tax point.
  
  

Wavelet EMP Configuration and Process Flow

2. EMP Configuration

2.1 Control Panel > System Admin > EMP Configurations > Trading

 Account Payable Not Due GL Short Hand: Select: accPayableInTransit

2.2 Control Panel > System Admin > EMP Configurations > Procurement > 

Supplier Consignment GL Short Hand > Select: suppConsignmentStock

Supplier Consignment Variance GL Short Hand > Select: consignmentStockVariance

3. Received Consignment Stock from Supplier

   Procurement >  Supplier Consignment > Create

• the UI for this function is similar to Direct Receiving Stock (GRN)
• however, the document that will be created is called Supplier Consignment In (SCI). The tables involved are :
  • inv_consignment_index
  • inv_consignment_item
  • inv_stock
  • inv_stock_delta
  • acc_journal_transaction
  • acc_journal_entry

• Must Keyed in the Consignment Value and record the gst
• it will not create the Supplier Invoice (SINV)

• sample JTXN @ RM 1000 + 6% GST

  	Debit	Credit
  suppConsignmentStock	1000		This GL is taken from EMP Configuration > Procurement > Supplier Consignment GL
  accPayableInTransit		1000	This GL is taken from EMP Configuration > Trading > Account Payable Not Due GL

  To view the Journal Entry: Accounting > Journal and Ledger > Jtxn Listing

  

   

4. Sold out and send statement to Supplier, Received Supplier Tax Invoice

    Procurement > Supplier Consignment > Billing

• • 1. specify the supplier, branch, date, remarks, reference number (Supplier Tax Invoice no)
  • 2. add item by selecting from a list of items that the supplier has yet to bill 

• however, the document that will be created is SINV +  Supplier Consignment Convert (SCC)
  
  

• Changes sample JTXN (Let’s say supplier bills cheaper @ RM 900 + 6% GST)

• Supplier Consignment Convert (SCC)

  	Debit	Credit
  inventory	1000		This will follow the consigned in price
  suppConsignmentStock		1000	This will follow the consigned in price
  consignmentStockVariance		100	Difference btw consigned in price and actual billing price
  accPayableInTransit	100		consignmentVariance * -1

• Supplier Invoice (SINV)

• GST will only be recorded for the SINV
  -| gst_Input| XXX | | This GL is taken from Input Tax Default GL Code for filling

5. Un-sales items, return back to supplier 

    Procurement > When return to supplier without billing

• the document that will be created is called Supplier Consignment Out (SCO). The tables involved are :
  • inv_consignment_index
  • inv_consignment_item
  • inv_stock
  • inv_stock_delta
  • acc_journal_transaction
  • acc_journal_entry

• it will not create the CM

• Changes sample JTXN @ RM 1000

  	Debit	Credit
  suppConsignmentStock		1000	This will follow the consigned in price
  accPayableInTransit	1000		This will follow the consigned in price

   

  

  

  

   

6. Supplier Consignment Listing 

    Procurement > Supplier Consignment > History 

7. Supplier Consignment Stock Balance

    Procurement > Supplier Consignment > Stock Balance

8.  Supplier Consignment Stock Movement Report

    Procurement > Supplier Consignment > Reports > Consignment Stock Card Report

 9. To view particular date report (e.g Balance as at 31 March 2015)

     Procurement > Supplier Consignment > Reports > Supplier Stock Balance Historical Report

consignment workflow.xls

issue reference: 

1. WMSSD-192