*Only applicable for Moving Average Cost Structure

Scenario: Local Freight Forwarder paid GST on importation on behalf of company.

1. You received Supplier Invoice from your Supplier in USD. The exchange rate is RM3 per USD.

2. You received Freight Forwarder Invoice from your Local Freight Forwarder (FF). FF paid GST on importation on behalf of your company.

*Please note Import GST amount of 600 is in USD. Therefore based on exchange rate of 1 USD=3 MYR, the amount is RM1,800.

3. Make sure you have a copy of K1 form for your record keeping.

How to record the documents?

1. Key in Supplier Invoice and posted it.

2. Go to Purchase > Import Declaration Form. Key in the details based on your K1 form.

Make sure you post the transactions.

3. Go to Purchase > Landed Cost. Record the FF Invoice in Landed Cost

Financial Entries are:

Dr. Carriage Inwards  RM1,000
Dr. GST Input Tax       RM60
Cr. Freight Forwarder       RM1,060

4. Transfer the GST Suspense amount to Freight Forwarder.

Since FF has paid the GST on behalf of the company, we need to transfer the amount to FF account. Go to Accounting > Journal Entry > Purchase Journal

Therefore, the total complete entries for FF would be:

Dr. Carriage Inwards RM1,000
Dr. GST Input Tax     RM60
Dr. GST Suspense    RM1,800
Cr. Freight Forwarder RM2,860

5. Open Payment to pay to the FF.