Software: MoneyWorks accounting software The GST paid on behalf of your customer to the Custom for the goods imported (usually happened in logistic business) are not your expenses nor your tax liability since you are not the owner of the goods imported. You may use a Current Asset account (we name it as “GST Paid […]

Software: Intuit QuickBooks accounting software The Tax Agency Detail Report in Intuit QuickBooks accounting software consist of four parts: Sales Purchases Tax on Sales Tax on Purchases The Sales Invoices (income) show under the “Sales” section and the expenses show under the “Purchases” section of the report. The “Amount” in both the Sales and the […]

Software: Reckon Accounts 2015 In the earlier version of Reckon QuickBooks (now know as Reckon Accounts), users managed the GST on the imported goods, which was usually paid on behalf by the forwarder, via an Enter Bill transaction. Two entry lines were used when recording an import GST bill from the forwarder. The first entry line will be the taxable amount with an appropriate GST code and another line with a negative taxable amount without any tax code or a non-taxable tax code associated. This will give a net tax paid on behalf. Assume the taxable amount is 1000.00 and the tax is 70.00, the double entry of the bill is: Debit COGS 1000.00 Debit Tax Payable 70.00 Credit COGS 1000.00 Credit Accounts Payable 70.00 However, in the newer version of Reckon Accounts (2015), this method seems no longer usable when involving a foreign currency. A Credit Note has to be used to less off the taxable amount from the bill instead of entering a negative value in an Enter Bill transactions. That is, use an Enter Bill for the taxable amount with an appropriate GST, then follow by a Credit Note to write off the taxable amount. Based on the above example, the double entry of the bill is: Debit COGS 1000.00 Debit Tax Payable 70.00 Credit Accounts Payable 1070.00 And the double entry of the Credit Note is: Debit Accounts Payable 1000.00 Credit COGS 1000.00 The net effect of the bill and the credit note are the tax and an Accounts Payable of 70.00. We tested the above on a foreign currency transaction, do let us know if the base currency transaction has a similar issue.  

Software: MoneyWorks accounting software GST (Goods and Services Tax) is not an expense nor an income. The tax amount received (Output tax) from the supply of goods and services is a current liability, which you need to pay to the government at the end of the GST cycle. Whereas the tax paid (Input) during the purchase of goods and services […]

Software: Intuit QuickBooks accounting software The Tax Detail Report in the Intuit QuickBooks accounting software consist of four parts; they are the Sales, Purchase, Tax on Sales, and Tax on Purchases. The default Tax Detail report is inclusive of the non-taxable journal transaction (such as depreciation and payroll) in the purchases section of the report, […]

Software: MoneyWorks accounting software If you have been using the MoneyWorks accounting software before the localisation of “Malaysia GST”, you can change the setting from the “Document Preferences”. From the “Edit” menu, select the “Document Preferences”, then change the “Localisation” setting at the “Locale/Currency” tab. After localisation had changed to [Malaysia G.S.T.], both the “GST-03 Guide (Malaysia)” and “GST […]