Exact Globe

 

Batch 360: Thai Withholding Tax and Tax Invoices

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:
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