Batch 360: Thai Withholding Tax and Tax Invoices
Functional design Optimize financial entry applications Exact
Asia Development Centre
Introduction:
This Thai withholding tax functional change is
for Thai legislation. Thai withholding tax is applied on the purchase
side and on the sales side. The withholding tax (both sales and purchase) has to
be calculated at the time that the invoice is paid and not at the time the
invoice is entered. This means that both the VAT as well as the withholding tax
is booked on a suspense account. After payment of the invoice VAT and
withholding tax is booked to the normal VAT and withholding tax account.
This
project is only applicable to Service items. If the Invoice line Item linked in
the Sales / Purchase Invoice is type =
Service Item, then the booking of Suspense GLs will
be applied. If the item linked is not Service item or the line does not have any
item linked, the normal VAT logic will apply (ie. No suspense GL will be used).
Normally, in Thai, the user will not enter Sales / Purchase
Invoice which has combination of service and non-service items in an invoice.
To use this new functionality, several
settings needed to be done as follows:
VAT suspense ledger and Withholding tax
suspense ledger, which must be neutral type, can be set at System / General /
Settings, under the subsection of General ledger settings.
Tax invoice has it own layout
( Document : 08.859.576 - Sample of Tax Invoice
Thailand
), and this layout is stored in
System / General / Settings, under the subsection of Documents
settings.
The Tax invoice must has its
own sequential number, and the starting number is given by the government.
This number is stored in System / General / Settings, under the subsection of
Numbers settings. The maximum length of this tax invoice number field is 6
digits.
Creating the Sales invoice and Purchase invoice in
Finance Module:
Creating sale or purchase journal entry in financial
module is as usual, but the only difference is
service item must be used for this case. As shown in the
images below, instead of normal VAT or withholding tax ledger are used,
the Tax suspense and withholding tax suspense ledger are used (which set
in System / General / Settings, under the subsection of General ledger
settings).
Purchase entry in Finance / Entries / Purchase
Sale entry in Finance / Entries / Sales
Matching for the Sales or Purchase with Receipt and
Payment:
To have the tax term show in the Tax Invoice Window (Finance /
VAT / Statistics / Process tax invoice), the sales or purchase must be matched
with receipt or payment.
The Process of Tax Invoice for Purchase
Entry:
Process of tax invoice for purchase entry is
merely assigning Tax invoice number and setting the Tax invoice date based on
tax invoice received from supplier when we make payment for our purchase.
User must select either group by "Our ref" or "Our ref./Entry" and click on tax
term which needed to be assigned Tax invoice number and set the Tax invoice
date. After assigning the Tax invoice number and setting the Tax invoice
date, this tax term is viewable under the option of "With tax invoice number".
User can cancel tax invoice for the purchase
entry which has been assigned with tax invoice number. After cancelling
the tax invoice, they can re-assign the tax invoice number for this purchase
entry under the option of "Without tax invoice number".
Group by function:
- "None" = merely for display,
user can not assign or cancel
- "Our ref" = user can assign
or cancel the tax term for purchase which has same our ref
- "Our ref./Entry" = user
can assign or cancel the tax term for purchase which has same our ref plus
entry number (entry number generated for the reversal entry when
matching).
The Process of Tax Invoice for Sales
Entry:
Process of tax invoice for sales entry is
setting the Tax invoice date for our receipt from our debtor. User must
select either group by "Our ref" or "Our ref./Entry" and click on tax term which
needed to be processed. After setting suitable date (Tax invoice date) and
selecting correct tax invoice layout, tax invoice can be printed as follows:
Options:
- To be created: Tax term of
sales invoice which has not been assigned with tax invoice number. User
can <process> it.
- Created: Tax term of sales
invoice which has been assigned with tax invoice number. User can
<Print> the tax invoice. User can re-print the tax invoice by
selecting the option of "Created" and click on the <Print> button again.
- Cancel: Tax invoice which
has been cancelled. After they cancel the tax invoice, they can read the
cancelled tax invoice by selecting the "Cancelled" option. They can
re-do the process of printing the tax invoice by selecting the option of "To
be created".
Group by function:
- "None" = merely for display,
user can not process, print, or cancel
- "Our ref" = user can
process, print or cancel the tax term for sales which has same our ref
- "Our ref./Entry" = user
can process, print or cancel the tax term for sales which has same our ref
plus entry number (entry number generated for the reversal entry when
matching).
Other modules to create Sales or Purchase
Entries:
Besides the financial module (Purchase Journal,
Sales Journal, and General Journal), user can produce
Sales and Purchase Entries in the following modules as well:
- Purchase orders (Purchase /
Entries / Purchase orders)
- Sales orders (Order /
Entries / Sales order)
- Sales Invoices (Invoice /
Entries / Invoices)
- Direct invoices (Invoice /
Entries / Direct invoices)
- Quotations (CRM / Entries /
Quotations)
Item used must be service
item.
Main Category: |
Support Product Know How |
Document Type: |
Release notes detail |
Category: |
Release Notes |
Security level: |
All - 0 |
Sub category: |
Details |
Document ID: |
09.599.225 |
Assortment: |
Exact Globe
|
Date: |
09-05-2017 |
Release: |
4.0D |
Attachment: |
|
Disclaimer |