Scenario: Key In Invoice from Frieght forwarder with disbursement items
(a) Supplier (S-Denise) send a Invoice to you (Gading Limited) at USD 10,000
(b) Freight forwarder send you invoices (i.e. Freight service and also Import GST pay on behalf) ;
**You also must have K1 form from Customs for Record Keeping.
Entering the Transactions through SAGE UBS Accounting using Transaction File Maintenance (TFM)
(a) For the Supplier Invoice , you can key in the transactions using add or quick method.
Assume the exchange rate is 3.00000 and using add method
The entry should be:
Dr Purchase MYR 30 000
Cr S-Denise MYR 30 000
Double entry for supplier invoice:
(b) There are few things need to be captured i.e Freight services, GST input tax (freight service) and also Import GST that paid on behalf by the freight forwarder.
The Journal Entries would be:
Dr Carriage Inwards 1,000
Dr GST Input Tax 60 (GST Input tax on Freight Services)
Dr GST Input Tax 1,800 (GST paid on behalf by Freightforward)
Cr O.S-Fast Freight Forwarder 2,860
STEP 1 : (a) Debit Carriage Inwards for Freight Service Charges and Link to TX tax code as it is Standard Taxable Purchase
(b) Key in GST Detail
STEP 2: Debit GST Input tax for the Freight Services
STEP 3: (a) Debit the GST Input Tax for Importation of Goods (based on K1 form) which is the GST amount paid on behalf.
(b) The tax code for the GST Input Tax for Importation of Goods is 'IM'
(c) Key-in GST Detail
STEP 4: (a) Credit the Supplier (Fast Freight Forwarder) the total amount owing to them.
(b) No Tax code required for this transactions
Step 5: Accept the transactions
~~Please note there is discrepancy on the GST paid on behalf in the Supplier invoice, (600) but recorded as (1,800) - as this example for illustration on the process only~~