Service Tax Adjustment for Submitted Entries [Optimum]

In previous version, system posting Service Tax upon Invoice. In another word, once you create invoice, system will post to SST 02 form. After upgrade the latest version 2018.1.0.5 or 2018.0.0.5 onward, service tax is posted upon payment basis. This document aims to provide solution for users who has submitted SST 02 form before. 

 Summary of Adjustment. 

1. Perform a backup before upgrading and print out SST 02 form
2. Resave existing September transactions for invoice, debit notes, Credit Notes, and Receive Payments
3. Make a Journal adjustment to allow Contra ‘SST deferred Tax’ become RM 0 & Service Tax amount is correct as submitted [Date as at end of the taxable period]
 4. Check Report Outstanding Invoice with Detail to find out outstanding amount [for service tax charge only]. Because later if user key-in Receive Payment, it will post to Service Tax again
5. Create a journal for Contra entry due to invoice already make payment on September [Date as at beginning of another month]

       Dr     Service Tax
Cr Deferred Tax
 6. Locked Posting Period as no changes after adjustment

Sample Data
 Original before upgrade

2. After upgrade latest version, resave Invoice transactions.
 You can click CTRL A à Right Click à Resave for all invoices

Note: Please resave for Invoice, Debit Note, Credit Note and Receive Payment 

3. Make a Journal adjustment to allow Contra ‘SST deferred Tax’ become RM 0 & Service Tax amount is correct as submitted. [Date as at end of the taxable period]
 

** You can compare after upgrade database à Account Inquiry à Service Tax account and check the balance as at end of taxable period** 

** Then compare with before upgrade database, Service Tax Amount**

** You should calculate the variance amount as follow the result as before upgrade (Submission value) **

4. SST 02 Form. Column 11 C, 12, 13 is not same as previous due to the adjustment is adjust for service tax amount only and it is not adjusted for CN value as well. Ensure column 16 is correct as previous 

Compare to Original Service Tax Amount as at submitted date
 

After adjustment, Service Tax account is same value as at submitted date
 

After adjustment, Deferred Tax amount = RM 0 as at submitted date

5. We are now at stage 4 adjustment.
 Check View à Report à Customer à Report à Report Outstanding Invoices with Details Report to find out outstanding amount as at end of taxable period date.
Because later if user key-in Receive Payment, it will post to Service Tax again
Note: Please refer to those transactions which charge for service tax only.

 

6. Create a Journal Entry as contra entry since service tax has been paid upon invoices during September
[Date as at beginning of another month]

7. Check SST 02 form, Journal adjustment will deduct from column 11 c).
Note: This is to deduct for double posting since service tax is paid on Invoice last time. 

8. Result in Deferred Tax account after adjustment, the amount is credited

9. After adjustment, locked Valid Posting Period as prevent changes after adjustment
 

10. Adjustment completely. 

11. If user Receive a payment later and knockoff, system will post to ‘Service Tax’ again

But we have performed a contra in journal entries as step no. 6, Service tax amount will be contra off.