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GST Handling on Importation of Goods
Author: Irene Mok Reference Number: AA-05551 Views: 8917 Created: 2015-05-04 20:27 Last Updated: 2015-05-04 21:10 75 Rating/ 1 Voters

GST Handling on Importation of Goods

Scenario:

Date

Transactions

Amount [RM]

02/04/2015

Purchase goods from NG Taiwan

USD10,000.00 @ 3.50

35,000.00

04/04/2015

Received Supplier Invoice

USD10,000.00 @ 3.50

35,000.00

20/04/2015

Goods arrived at port for declaration.

K1 form issued by JKDM with exchange rate 3.75 with additional charges:

 

 

[a]  GST on goods imported at 6%

USD10,000.00 @ 3.75 x 6%

2,250.00

[b]  Custom Duty

RM6,000.00 x 6%

    360.00

 

[c]  Insurance

RM1,150.00 x 6% 

69.00

 

 

 

2,679.00

ABC Forwarder Invoice:

 

 

20/04/2015

GST paid on importation of goods

 

2,679.00

 

Transport charges by ABC Forwarder

RM1,500.00 with GST6%

1,590.00

 

 

 

4,269.00


Step 1:   Setting up requirements:

              a)      Ensure required settings are managed appropriately via Control Panel > Accounting Settings for the system to automate the financial entries correctly for your entry.

              b)                               At the GST/VAT Settings tab, map the required GL account and tax code as shown in the image below:

                     

  

             c)       Ensure IM tax code have all the required information filled as shown in the image below:

                     


Step 2    Enter Supplier Invoice with either tax code NR [or OP, depending on your application preference]

                    


               a)   View financial entries auto generated by the system:

                    

              b}   View journal entry after the supplier invoice is posted

                    

Step 3   Enter Import Declaration Form with reference to K1 Form issued by JKDM

              a)  Link to Supplier Invoice – all details will be displayed as show below        

                   Note: It is mandatory to fill in K1 form number in Registration No. field and the purchase description

                

              b)  Change the exchange rate from 3.5 to 3.75 [must follow rate in K1 Form issued by JKDM] and system will recalculate the local equivalent to compute GST – refer image below:

                   Note: the change of rate here is strictly for GST computation and will not affect the Supplier Invoice

               

              c)  Key in other charges as printed on the K1 Form

                

              Working:

Imported Goods    RM37,500    x 6%     = RM   2,250.00

Custom Duties      RM  6,000    x 6 %     = RM      360.00

Insurance            RM  1,150   x 6%    = RM     69.00 

              d)  Save the transactions and view financial entries:

           


Step 4   Post the transaction and view the following reports:

              a)   Purchase Journal

               


              b)  General Ledger Details

            


Step 5  Ensure you have a service or disbursement item created with GST Suspense mapped to its Purchase Account field. 

              An example for reference:

              

Step 6  Key in the ABC Forwarder invoice as per scenario provided

              

              Notes:

              a)  Select item GST on Import and input the GST value

              – DO NOT assign any tax code on this line as this is the tax amount itself

                    –  ensure the GL account under Account Code column is the GST Suspense GL account for the contra to take effect

              b)  Select the service item for transport charges and input the amount

              – TX tax code will be defaulted if you have set it in the item maintenance.  Else, select manually

             – check if GL accounts displayed under Tax Account [GST Input Tax] and Account Code [expense] are correct for the system to generate the financial entries when the transaction is saved

              c)  Save the transaction and a confirmation box will be prompted:

              

Step 7  Click [Proceed to Save] button to save the transaction and view the financial entries:

              

Step 8  Post the transactions and view the Purchase Journal

              

Step 9  View the GST Suspense GL account to check that it has been contra off

              


******   The End   ******

              

     

Attachments
GST on Imported Goods.pdf 0.6 Mb Download File
Rss Comments 8
  • [ MO]: importation of goods 2015-06-03 11:36 #

    Hi Li,
    my version is Build 9.9.1.22

  • [Li Zhen Yap]: Re: importation of goods 2015-06-03 11:39#

    Dear MO,

    Thank you for the information provided.

    Kindly do update to the latest version at 9.9.2.4 and provide information by replying the email we have sent to you.

  • [MO]: importation of goods 2015-06-03 11:28 #

    Hi Li,
    i been follow the step before to key in accounting entry, but result come out is
    a)03-return DO NOT SHOW OUT THE PURCHASE AND INPUT TAX AMOUNT
    b) GST report, it show out the purchass and input tax amount

    Why? do have another way to key in?
    Please advice.
    from
    MO

  • [Li Zhen Yap]: Re: importation of goods 2015-06-03 11:32#

    Dear MO,

    Kindly do provide the info on which version are you using currently?

  • [MO]: importation of goods 2015-06-02 17:39 #

    My app ID:S120014544xx
    Product: SUBS9CBILMY (9.9.1.22)
    im is using accounting and inventory sage ubs 2015
    my company have import goods, purchases goods USD1000@3.50 = RM3500, when goods arrived at port for declaration , k1 form exchange rate 3.75 and GST chg will be RM225.00 (USD1000*3.75*6%)
    Forwarding A paid RM225.00 onbehalf of us.
    how to key in this entry in ubs sage 2015 in inventory? or we just need to key in accounting ?
    please advice
    from
    mo

  • [Li Zhen Yap]: Re: importation of goods 2015-06-03 11:09#

    Dear MO,

    Thank you for your enquiry.

    The answer below is referring to your comment stated you are Sage UBS user leave a comment at Sage 50 article.

    Kindly do follow the steps and refer to the print screen provided at link:
    http://knowledge.sage.my/index.php?/article/AA-05433 (Download the PDF)



  • [ KK Foong]: 2015-05-27 12:02 #

    Hi Ms Irene Mok,
    I have separately sent the same inquiry email to support.my@sage.com.

    Can you please provide the same instruction for "Sage 2015"?

    Regards,
    KK Foong

  • [Li Zhen Yap]: Re: 2015-05-27 12:48#

    Dear KK,

    Thank you for your feedback.

    Do you mind to provide which product do you mean by "Sage 2015" ?

    If you would like to know Sage UBS 2015, kindly refer to the link below:

    http://knowledge.sage.my/index.php?/article/AA-05433/70/GST/Purchase-and-Expenses/Handling-Importation-of-Goods.html

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