EMP Configuration - Tax

Menu Path: Control Panel > EMP Configurations > Tax

General Tab

Choose Tax Country
Choose the Goods and Service Tax Abbreviation

Sales (Output Tax)

This configuration effects Sales related transactions for example: Invoice, Cashsale, Sales Return etc.
Select the Branch which subject to Output Tax 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 configuration effects Purchase related transactions for example: GRN, Credit Memo, Purchase Return etc.
Select the Branch which subject to Input 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

The picture above shows the correct default GL Code for each function.

Withholding Tax (Customer)

Used for Thailand → refer to the tax withhold by customer during the payment (Receipt function)

Withholding Tax (Supplier)

Used for Thailand → refer to the tax withhold by suppluer during the payment (Payment Voucher)

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 Trade In Tax Code
	Default Foreign Exchange Gain Tax Code		IES
	Default Foreign Exchange Loss Tax Code		OS
	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	gst_Contra
	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

NOTES:

Make sure tax code IES tax code is deactivated (IF NOT used at any default setting) when tax country is changed from Malaysia to any other country
An error will shown if the IES tax code is set as default and user tried to change from Malaysia to another country

Found 5 search result(s) for Tax.

Page: Tax Configuration (Tax Code) (Wavelet Management Suite)
2017-Aug-10

Page: Tax Year for Tax Group (Wavelet Management Suite)
2017-Nov-02

Page: GST Taxable Amount by Tax Code (Wavelet Management Suite)
2018-Dec-12

Page: Simplified Tax Invoice and Input Tax Claim (Wavelet Management Suite)
2015-Oct-20

Page: Tax Filing Cycle for Tax Group (Wavelet Management Suite)
2015-May-22