Partial Exemption & Capital Goods Adjustment 28 March 2017 - - PowerPoint PPT Presentation

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Partial Exemption & Capital Goods Adjustment

Account | Billing | Stock | POS | Payroll | Mobile

28 March 2017 Oasis Corporate Park, Selangor.

ISV/Software Solutions

Presentation Slides

(simplified version)

AutoCount PE & CGA

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Periodically/Annually:

• Observe De Minimis Rule
• Compute IRR / AIRR
• Compute input tax claimable
• Perform period / annual adjustment
• Generate Journal Entries
• Posting to GST-03

Enter transaction with correct taxcode You just need to And the system will

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Partial Exemption Module

• Capture AIRR from PE

calculation

• Compute CGA
• Generate Journal Entries
• Posting to GST-03

For 5 / 10 years Maintain Capital Items You just need to And the system will

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Capital Goods Adjustment Module

Thank You

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AutoCount PE & CGA

Presentation Slides

(extended version)

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AutoCount PE & CGA

Basic Setup

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AutoCount PE & CGA

2 Options: i) PE or ii) PE & CGA

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Modules

OS-TXM OS-TXM-CG NTX NTX-CG ES-CG ES-GU IES TX-ES-CG TX-IES-CG TX-RE-CG TX-ES TX-IES TX-RE AJP-O AJP-A AJP-CG Input tax Output tax DS DS-ATMS DS-I SR-S RS GS ZRL ZDA ZRE SR-CG ZDA-CG ZRE-CG RS-CG GS-CG AJS-O AJS-A AJS-CG

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Tax Codes Activated

Generated G/L account

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Auto Configuration

Partial Exemption Module

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AutoCount PE & CGA

Enter transactions Compute De Minimis Rule, IRR & input tax claimable Posting to GST-03 and Journal Compute AIRR & annual/ longer adj amount Posting to GST-03 and Journal

Manual System System System System

Period Adjustment System

Choose the correct tax code during transaction

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PE Flow

Summary of processed PE by period

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GST Processor – PE

Double click to view details

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GST Processor – PE

Elements of O1 and O2

Double click to view transaction details

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GST Processor – PE

Double click to view calculation of De Minimis Rule

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GST Processor – PE

Calculation of De Minimis Rule Calculation to

• bserve De

Minimis Rule

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GST Processor – PE

Double click to view calculation

• f IRR, RE

claimable/not claimable

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GST Processor – PE

Calculation of IRR, RE claimable and not claimable

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GST Processor – PE

Click to view Journal Entry

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GST Processor – PE

Journal Entry generated by system

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GST Processor – PE

Click to view Journal Entry (period adjustment)

Summary of Longer period adjustment Auto- processed on the 2nd taxable period each year

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GST Processor – PE

Click to view Journal Entry

• f longer

period adjustment

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GST Processor – PE

Double click to view transactions Double click to view calculations Double click to view Journal Entry

User-maintained vs system generated

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PE Maintenance

Capital Goods Adjustment Module

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AutoCount PE & CGA

Maintain Capital Goods Capture AIRR from PE calculation Compute CGA amounts Posting to GST-03 and Journal

Manual System System System

Maintain Capital Goods

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CGA Flow

May enter multiple items

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Capital Goods Maintenance

Double click to view calculation

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GST Processor – CGA

Calculation of IRR, Base %, CGA % and amount

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GST Processor – CGA

Double click to view journal entry

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GST Processor – CGA

Show all intervals (5 or 10 years)

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CGA Schedule

Colour to indicate type

• f record

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CGA Schedule

Special Scenarios

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AutoCount PE & CGA

Case A: 100% Claimed

• I just realized I am a mixed supplier
• I have claimed all the residual input taxes.

Case B: 0% Claimed

• I know that I am a mixed supplier but I did not claim

any residual input tax AND

• Now I want to claim it.

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Scenario 1

Case A: 100% Claimed

• Enter PE details for past period(s) and maintain IRR as

100% at PE maintenance Case B: 0% Claimed

• Enter PE details for past period(s) and maintain IRR as

0% at PE maintenance No need to edit transactions PE details include T, E, O1, O2, TX- RE, TX-ES System will auto do annual adjustment

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Scenario 1 – Solution for PE

Current Period : 2017 May PE details for 2017 Jan – 2017 April are as belows:

T (RM) E (RM) Asset disposal as standard rate (RM) TX-ES (RM) TX-RE (RM) IT claimed Case A IT claimed Case B Jan 50,000 8,000

• 2,000

4,000 6,000 Feb 100,000 70,000 30,000 500 10,000 10,500 March 20,000

• 1,000

7,500 8,500 April 90,000 80,000 5,000 7,000 12,000 19,000

Enter PE details for Past Period (2017 Jan – April) Current Period : Just choose the right tax code during entries

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Scenario 1 – PE (Example)

CASE A: IRR = 100% CASE B: IRR = 0% PE Maintenance Key in details of Jan – Apr 2017

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Scenario 1 – PE (Example)

Details will be used for Annual Adjustment

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Scenario 1 – PE (Example)

Maintain assets at Capital Goods Maintenancea Manually maintain CGA details for first intervals in CGA schedule. Case A: IRR = 100% Cash B: IRR = 0% Current year and subsequent years CGA will be auto completed by system.

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Scenario 1 – Solution for CGA

Purchased date: 19/3/2016 Asset value : RM150,000 Tax Amount : RM 9,000

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Scenario 1 – CGA (Example)

CASE A: IRR = 100% CASE B: IRR = 0%

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Scenario 1 – CGA (Example)

• Previously using:
• other software
• spreadsheet
• manual calculation

to produce IRR, De Minimis, claimable amount, posting .... AND

• Now start using AutoCount Accounting to handle PE and

CGA

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Scenario 2

• Enter PE details for past periods and maintain

IRR (according to your calculation regardless of correctness) at PE maintenance

No need to enter all transactions PE details include T, E, O1, O2, TX- RE, TX-ES System will auto do annual adjustment

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Scenario 2 – Solution for PE

Current Month : 2017 May PE details for Jan – April 2017 are as belows:

T (RM) E (RM) Asset disposal as standard rate (RM) TX-ES (RM) TX-RE (RM) IRR Jan 50,000 8,000

• 2,000

4,000 86.21% Feb 100,000 70,000 30,000 500 10,000 50.00% March 20,000

• 1,000

7,500 100.00% April 90,000 80,000 5,000 7,000 12,000 51.52%

Enter PE details for Past Period (2017 Jan – April) Current Period : Just choose the right tax codes during entries

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Scenario 2 – PE (Example)

Key in PE details and IRR accordingly

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Scenario 2 – PE (Example)

Maintain assets at Capital Goods Maintenancea Manually maintain CGA details for first intervals in CGA schedule.. IRR = ? % Current year and subsequent years CGA will be auto completed by system.

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Scenario 2 – Solution for CGA

Purchased date: 19/3/2016 Asset value : RM150,000 Tax Amount : RM 9,000 IRR = 60%

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Scenario 2 – CGA (Example)

Maintain IRR = 60%

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Scenario 2 – CGA (Example)

Scenario 3: Input tax incurred before GST Registration Scenario 4: Input tax incurred before first interval Scenario 5: Input tax incurred after first interval (Parallel method) Scenario 6: Disposal of assets Scenario 7: Assets written off / lost

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5 More Special Cases for CGA

The asset is bought before I become GST registered person.

• Maintain market value of asset in capital goods

maintenance

• Commence date : GST registration date

Scenario 3: Input tax incurred before GST Registration

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5 More Special Cases for CGA

Market value 300,000 GST Reg. Date GST Reg. Date GST 18,000

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Scenario 3: Input tax incurred before GST Registration

5 More Special Cases for CGA

• Maintain asset with its respective incurred date.
• Commence date : Occupied date
• System will auto-calculate its base percentage and do

adjustments The input tax of an asset was incurred before the year it has been occupied/used/become mixed supplier. Scenario 4: Input tax incurred before first interval

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5 More Special Cases for CGA

Input tax incurred 10/10/2016 (200,000 + 12,000) 20/1/2017 (500,000 + 30,000) Occupied date 20/3/2017

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Scenario 4: Input tax incurred before first interval

5 More Special Cases for CGA

Additional/add-on assets is acquired after first interval.

• Maintain asset with its respective incurred date.
• Commence date : first incurred date
• System will use parallel method to calculate CGA amount.

Scenario 5: Input tax incurred after first interval (Parallel method)

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5 More Special Cases for CGA

Asset sub A Purchased 20/3/2017

Scenario 5: Input tax incurred after first interval (Parallel method)

Asset sub B Purchased 20/3/2018 First incurred date

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5 More Special Cases for CGA

Scenario 5: Input tax incurred after first interval (Parallel method)

CGA 2018

Parallel method

CGA 2019

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5 More Special Cases for CGA

• Asset is disposed on:

(different timing = different CGA treatment) a) first interval; OR b) first day of any other interval; OR c) other day of any other interval

• Maintain disposal date in capital goods maintenance.
• System will auto-calculate CGA amount for disposed asset.
• Support Partial disposal

Scenario 6: Disposal of assets

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5 More Special Cases for CGA

Enter Disposal Date 1/5/2018 Scenario 6: Disposal of assets

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5 More Special Cases for CGA

Disposed on 1/5/2018 Scenario 6: Disposal of assets

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5 More Special Cases for CGA

• Asset is written off/ lost on:

(different timing = different CGA treatment) a) first interval; OR b) first day of any other interval; OR c) other day of any other interval

• Maintain disposal date in capital goods maintenance AND

check “is Lost”

• System will auto-calculate CGA amount for assets written
• ff/lost
• Support partial lost

Scenario 7: Assets written off / lost

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5 More Special Cases for CGA

Enter Disposal Date. Scenario 7: Assets written off / lost

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5 More Special Cases for CGA

Written off/ Lost 2019 Scenario 7: Assets written off / lost

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5 More Special Cases for CGA

For Partial Disposal / Lost

Enter date/amount

• f Partial

disposal/lost Click on Disposal

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5 More Special Cases for CGA

Conclusion

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AutoCount PE & CGA

Periodically/Annually:

• Observe De Minimis Rule
• Compute IRR / AIRR
• Compute input tax claimable
• Perform period / annual adjustment
• Generate Journal Entries
• Posting to GST-03

Enter transaction with correct taxcode

You just need to

And the system will

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For PE

• Capture AIRR from PE

calculation

• Compute CGA
• Generate Journal Entries
• Posting to GST-03

For 5 / 10 years Maintain Capital Items And the system will

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For CGA You just need to

Thank You

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AutoCount PE & CGA