AR Bad Debt Recovered

Explanation

Should the customer pay up after Bad Debt Relief is claimed, the business is obligated to report the collection as Bad Debt Recovered, which will increase Output Tax for the month.

Guide

1. Control Panel > System Admin > EMP Configurations > Tax > Purchase (Input Tax) : assign a GL Code as Default GL Code for AR Bad Debt Recovered (Refer to GST Setup User Guide (2015-04-01) 3.3: Purchase (Input Tax))

2. Extended Modules > Malaysia GST > AR Bad Debt Recovered

3. Date (as of) : Select the 2015 November filling cycle and click "Generate Report", system will list out the 2015 April documents, which meet the following 2 criteria:

already claimed and filed AR Bad Debt Relief in October / previous Filing Cycle
payment/settlement/knock-off made after AR Bad Debt Relief claimed

4. Select the Invoice for reporting Bad Debt Recovered, then click "Report Bad Debt Recovered"

Detail explanation on the listing above

Column Name	Description
Document	Invoices that had outstanding amount 6 months after being issued, already claimed AR Bad Debt Relief and filed, payment received after Relief claimed
Customer Name	Name of the customer
Total Amount (Without GST)	Invoice total amount, before tax
Total GST Amount	Tax amount for the Invoice
Current Outstanding Amount (Without GST)	Invoice current outstanding amount, before tax
Bad Debt Relief Declared (Without GST)	Bad Debt Relief Credit Memo total amount, before tax
Bad Debt Relief Declared GST Amount	Tax amount for the Bad Debt Relief Credit Memo
Previous Bad Debt Recovered	Tax amount for previously reported Bad Debt Recovered Credit Memo
Current Bad Debt Recovered (Without GST)	Current payment received, before tax
Current Bad Debt Recovered GST Amount	Tax amount for the current payment received

Note : an Invoice can be partially settled, thus, the Tax Amount claimable will always be calculated based on the outstanding amount, instead of the Total Invoice Amount

5. Once you click "Report Bad Debt Recovered", a Credit Memo will automatically be created to record the recovery. The Credit Memo will be as below, whereby badDebtRecoveredAR is the "Default GL Code for AR Bad Debt Recovered" that you have setup in EMP Configuration. The CM date is filing cycle end date.

6. Please proceed with the Output Tax Filling Step (Output Tax Filing)

7. The CM recorded in Output Tax Invoice Report, tax code: AJS (Output Tax Invoice Report)

8. GST-03 Report, on 5b Total Output Tax (Inclusive of Bad Debt Recovered & other Adjustments) and 18 Bad Debt Recovered