How to record Capital Goods Acquired to report in GST-03

Three (3) suggested methods of reporting the purchase of any Capital Goods (valued MYR 100,000.00 or higher) will be described in this section for the reference of the users.

Goods Receive Note (GRN) using Fixed Asset Item

1. Add a Fixed Asset type Item in the Wavelet MS system to represent the Capital Goods that you are acquiring/purchasing. 
   • Go To : Accounting>Fixed Asset>Item>Add Item
   • Key-in the compulsory fields :
     Company, the company that is purchasing the Capital Goods
     Item Code, that represents the Capital Goods
     Item Name, name of the Capital Goods
     Fixed Asset GL Code, the GL code used for Fixed asset of the Company
     Residual Value, the nett value of the Capital Goods
     Depreciation Rate %, monthly depreciation of the Capital Goods
     Asset Life (Month), life cycle of the Capital Goods
     Disposal GL Code, the GL code used for disposal/write-off at the end the Asset Life of the Capital Goods
     Depreciation GL Code, the GL code used for monthly depreciation of the Capital Goods
     Accumulated Depreciation GL Code, the GL code used for total depreciation of the Capital Goods
   • Set Tax Option to be "Tax Applicable"
   • Setting the Input and Output Tax Code is optional
2. Purchase the Fixed Asset Item
• Go To : Direct Receive Stock GRN function
• Create GRN with correct supplier and the Fixed Asset Item
• Please take note that the Fixed Asset Items are serialized
• Choose the Tax Code as "TX" (if your company does not have mixed supplies) OR "TX-RE" (if your company has mixed supplies)
3. File the SINV related to the GRN created
• Go To : Extended Modules>Malaysia GST>Tax Filing>Input Tax Filing (if your company does not have mixed supplies)
• OR : Extended Modules>Malaysia GST>Tax Filing>Tax Filing for Residual Input (if your company has mixed supplies)
4. Now the Capital Goods Acquired will be correctly reflected in GST-03 Tax Return Form

GRN using GL Code Item

1. Add a GL Code type Item in the Wavelet MS system to represent the Capital Goods that you are acquiring/purchasing. (Reference : http://46.137.242.187/projects/wavelet-ms/wiki/Add_Item)
2. Create GRN with correct supplier and the GL Code Item
3. File the SINV related to the GRN created
4. Now the Capital Goods Acquired will be correctly reflected in GST-03 Tax Return Form

Manual Supplier Invoice

1. Add a new GL Code to represent all Capital Goods that you are acquiring/purchasing. (Reference : http://46.137.242.187/projects/wavelet-ms/wiki/Add_GL_Code)
2. Alternatively edit the existing GL Code that represent all Capital Goods
3. Make sure to key-in "16_CAPITAL_GOODS_ACQUIRED" in the Tax Return Section 2 box (Refer to Section 1.8 : http://46.137.242.187/projects/wavelet-ms/wiki/GST_Setup)
4. Create a Supplier Invoice (Go To : Supplier>Supplier Invoice>Supplier Invoice Create) using this GL Code
5. File the SINV created
6. Now the Capital Goods Acquired will be correctly reflected in GST-03 Tax Return Form

Please ensure to follow either of there methods for the purpose of reporting of the accurate value of any Capital Goods, that is acquired by a GST registered entity on or after April 1 2015, in GST-03 Tax Return Form.

Related:

Capital Goods Adjustment and Depreciation