AP Bad Debt Paid

Explanation

Should the business pay up after AP Bad Debt Relief is declared, the business is obligated to report the payment as Bad Debt Paid, which will increase Input Tax for the month.

Guide

1. Control Panel > System Admin > EMP Configurations > Tax > Sales (Output Tax) : assign a GL Code as Default GL Code for AP Bad Debt Paid ( Refer to GST Setup User Guide (2015-04-01), 3.2: Sales (Output Tax)

2. Extended Modules > Malaysia GST > Supplier (AP) Bad Debt Paid

3. Date (as of) : Select the 2015 November filling cycle and click "Generate Report Now", system will list out the 2015 April documents, which meet the following 2 criteria:

• already claimed and filed AP Bad Debt Relief in October / previous Filing Cycle
• payment/settlement/knock-off made after AP Bad Debt Relief claimed

4. Select the Supplier Invoice for reporting Bad Debt Paid, then click "Report AP Bad Debt Paid"

Detail explanation on the listing above 

Document

Supplier Invoices that have outstanding amount 6 months after being issued

Total Amount (Without GST)

Supplier Invoice total amount before tax

Total GST Amount

Tax amount for the Supplier Invoice

Current Outstanding Amount (Without GST)

Supplier Invoice current outstanding amount before tax

Bad Debt Relief Declared (Without GST)

Bad Debt Relief Credit Memo total amount, before tax

Tax amount for the Bad Debt Relief Credit Memo

Tax amount for previously reported Bad Debt Paid Credit Memo

Tax amount for the current payment made

5. Once you click "Report AP Bad Debt Paid", a Credit Memo will automatically be created to record the bad debt.

 6. Please proceed with the Input Tax Filling Step (Input Tax Filing)

7. The CM recorded in Input Tax Invoice Report, tax code: AJP (Input Tax Invoice Report)

8. GST-03 Report, on 6b Total Input Tax (Inclusive of Bad Debt Relief & other Adjustments)