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Software Solution

Issues on GST and SOLUTIONS BY SOLUTIONS BY OMNI2UACCOUNTOMNI2UACCOUNT

Issues

1.1. Ensure software comply to Ensure software comply to RMCD guidelineRMCD guideline

2. Changes of RMCD GST Ruling3. Data Entry

a. Clerk difficult to remember tax codeb. Entry of Purchase Invoice must be per item basisc. Too much data entry workd. Entry mistake

4. No GST charge among companies registered in the same group.

Ensure software comply to RMCD Ensure software comply to RMCD guidelineguideline

• To ensure all GST related calculation and account treatment comply to RMCD guideline

• This is to ensure that the software developer understand the guideline properly and implement into their system accordingly.

OMNI2UACCOUNT SOLUTIONOMNI2UACCOUNT SOLUTION

• OMNI2UACCOUNT has been approved in Advance Advance CategoryCategory compliance to RMCD's GST guideline

• OMNI2UACCOUNT is an approved software vendor approved software vendor for SME to claim software financial assistance from government of Malaysia.

• OMNI2U Point of Sales OMNI2U Point of Sales comply to GST guideline and direct integrated direct integrated to OMNI2UACCOUNT

• OMNI2U Inventory OMNI2U Inventory integrate with OMNI2UACCOUNT related with Purchases and Damage Stock

Issues

1. Approved Compliance to RMCD

2.2. Changes of RMCD GST RulingChanges of RMCD GST Ruling3. Data Entry



Changes of RMCD GST RulingChanges of RMCD GST Ruling

• Royal Malaysian Customs Department GST ruling may not be final therefore from time to time software modification may be needed to comply with the changes.


• OMNI2U ACCOUNT is a CLOUD solution CLOUD solution where upgrade is automatic once modification is done whereas other than cloud will need installation on each computer at client place. It is a time consuming activity.

Issues

1. Approved Compliance to RMCD2. Changes of RMCD GST Ruling

3.3. Data EntryData Entrya.a. Data Entry staff difficult to remember tax codeData Entry staff difficult to remember tax codeb. Entry of Purchase Invoice must be per item basisc. Too much data entry workd. Entry mistake


Data Entry – Data entry person difficult to Data Entry – Data entry person difficult to remember tax coderemember tax code

• There are 24 Tax Code to remember. 13 Tax 13 Tax CodeCode for purchasespurchases transaction and 11 Tax11 Tax CodeCode for salessales transaction.


1.1. OMNI2UACCOUNT avoid mistake in OMNI2UACCOUNT avoid mistake in selection Sales Tax Code in Sales entry. selection Sales Tax Code in Sales entry. OMNI2UACCOUNT display 11 Tax Code OMNI2UACCOUNT display 11 Tax Code for Sales only when making sales entryfor Sales only when making sales entry

2. OMNI2UACCOUNT avoid mistake in selection Purchase Tax Code in Purchase entry. OMNI2UACCOUNT display 13 Tax Code for Purchase only when making purchase entry.

3. Avoid Tax Code Confusion through1. Product Tag with Tax Code2. Sales Remark3. Purchase Remark

11 GST Tax Code for Supply

OMNI2UACCOUNT SOLUTIONOMNI2UACCOUNT SOLUTION1. OMNI2UACCOUNT avoid mistake in selection Sales Tax Code in

Sales entry. OMNI2UACCOUNT display 11 Tax Code for Sales only when making sales entry

2.2. OMNI2UACCOUNT avoid mistake in OMNI2UACCOUNT avoid mistake in selection Purchase Tax Code in selection Purchase Tax Code in Purchase entry. OMNI2UACCOUNT Purchase entry. OMNI2UACCOUNT display 13 Tax Code for Purchase only display 13 Tax Code for Purchase only when making Purchase entry.when making Purchase entry.

3. Avoid Tax Code Confusion through1. Product Tag with Tax Code2. Sales Remark3. Purchase Remark

13 GST Tax Code for Purchase


1. OMNI2UACCOUNT avoid mistake in selection Sales Tax Code in Purchase entry. OMNI2UACCOUNT display 13 Tax Code for Purchase only when making purchase entry

2. OMNI2UACCOUNT avoid mistake in selection Purchase Tax Code in Sales entry. OMNI2UACCOUNT display 11 Tax Code for Sales only when making sales entry.

3.3. Avoid Tax Code Confusion throughAvoid Tax Code Confusion througha.a. Product Tag with Tax CodeProduct Tag with Tax Codeb. Sales Remarkc. Purchase Remark




3.3. Avoid Tax Code Confusion throughAvoid Tax Code Confusion througha. Product Tag with Tax Codeb.b. Sales RemarkSales Remarkc. Purchase Remark




3.3. Avoid Tax Code Confusion throughAvoid Tax Code Confusion througha. Product Tag with Tax Codeb. Sales Remarkc.c. Purchase RemarkPurchase Remark

Issues

1. Ensure software comply to RMCD guideline2. Changes of RMCD GST Ruling3.3. Data EntryData Entry

a. Clerk difficult to remember tax code

b.b. Entry of Purchase Invoice must be per item basisEntry of Purchase Invoice must be per item basisc. Too much data entry workd. Entry mistake


Entry of Purchase Invoice must be per item Entry of Purchase Invoice must be per item basisbasis

• This is due to different product may be different type of supply and different tax code. Generally there are 4 type of supply:– Taxable supply• Standard and Zero rated

– Non Taxable Supply• Exempt and Out of scope


• OMNI2UACCOUNT allow entry of tax code per product basis. Each product is tag with its related tax code. Other than product can be tag with tax code using remark. This will avoid data entry mistake.

Issues

1. Ensure software comply to RMCD guideline2. Changes of RMCD GST Ruling3.3. Data EntryData Entry

a. Clerk difficult to remember tax codeb. Entry of Purchase Invoice must be per item basis

c.c. Too much data entry workToo much data entry workd.d. Entry mistakeEntry mistake


Too much data entry workToo much data entry work

• Purchase Invoice – in order to claim, invoice from supplier need to be recorded in the system so that it will automatically calculated and generate GST03.

• Sales Invoice – To enter the product or service to sell and entering the correct tax code is too many and can easily cause human error.


• OMNI2UACCOUNT provide many ways to avoid or reduce repetition of data entry.– Product Tag with price and tax code– Sales Remark tag with tax code– Purchase Remark tag with Tax code.

• User just need to select the related item and all the related information will be retrieved and fill the necessary information in the correct field.

Issues

1. Ensure software comply to RMCD guideline2. Changes of RMCD GST Ruling3. Data Entry


4.4. No GST charge among companies No GST charge among companies registered in the same group.registered in the same group.

No GST charge among companies No GST charge among companies registered in the same groupregistered in the same group

• Companies can register their company in the same group that will allow transaction between the companies without GST.


• OMNI2UACCOUNT will handle automatically the transaction between the companies without GST.

• User need to configure the companies as in the same group.

Issues ….. continue

5.5. Business between consignor and Business between consignor and consigneeconsignee

6. Consolidated View for management7. GST03 Submission8. Mix Supply handling9. Complication in Progresive Invoicing and

Payment with retainer fee10.Transaction related to scheme


• OMNI2UACCOUNT can handle consignor and consignee business transaction.

• Delivery Order is issued, 21 days rule doesn’t apply.

• Product in consignee place more than one year will be consider sold.


5. Business between consignor and consignee

6.6. Consolidated View for managementConsolidated View for management7. GST03 Submission8. Mix Supply handling9. Complication in Progresive Invoicing and


Consolidated View for managementConsolidated View for management

• HQ normally need to monitor their subsidiaries performance.


• OMNI2UACCOUNT can consolidate information from all the subsidiaries and provide summary or details report from HQ.

• The same monitoring can be done for group monitoring such as Monitoring of Entrepreneur and Cooperative.

• Also monitoring of companies account by Auditor or Accountant to ensure correct entry and submission of GST03 and GAF.



6. Group management7.7. GST03 SubmissionGST03 Submission8. Mix Supply handling9. Complication in Progresive Invoicing and



• OMNI2UACCOUNT automatically calculate and generate GST03 for submission



6. Group management7. GST03 Submission

8.8. Mix Supply handlingMix Supply handling9. Complication in Progresive Invoicing and


Mix Supply handlingMix Supply handling

• Business of Taxable Supply and Exempt Supply product are Mix Supply business.

• Exempt supply business do not need to charge output tax to their client and not allow to claim input tax as well.

• This type of business will not allow the businesses to charge output tax but allow them to claim input tax but not 100%.


• OMNI2UACCOUNT able to calculate the percentage of input tax to be claimed using IRR formula and DMR.



6. Group management7. GST03 Submission8. Mix Supply handling

9.9. Complication in Progressive Invoicing Complication in Progressive Invoicing and Payment with retainer feeand Payment with retainer fee

10.Transaction related to scheme

Complication in Progressive Invoicing Complication in Progressive Invoicing and Payment with retainer feeand Payment with retainer fee

• Progressive invoicing and payment normally for project basis business which sometime involve retainer fee such as construction’s contractors and developers.

• The GST for retainer fee is payable at the time of claim.


• OMNI2UACCOUNT can handle progressive invoice and payment with retainer fee.



6. Group management7. GST03 Submission8. Mix Supply handling9. Complication in Progressive Invoicing and

Payment with retainer fee

10.10.Transaction related to schemeTransaction related to scheme

Transaction related to schemeTransaction related to scheme

• There are several scheme that companies can apply to reduce their cash flow problem such as Approved Trader Scheme (ATS), Approved Toll Manufacturer Scheme (ATMS), Approved Jeweler Scheme (AJS) and etc.


• OMNI2UACCOUNT able to handle and calculate scheme related transaction.


11.11. Bad Debt Account ReceivableBad Debt Account Receivable12. Bad Debt Account Payable13. 21 day rule

Bad Debt Account ReceivableBad Debt Account Receivable

• Base on invoice date, GST is paid. After six month, if no payment from customer, GST is claimable from Customs.


• OMNI2UACCOUNT able to handle and alert the user for Bad Debt claimsBad Debt claims.


11. Bad Debt Account Receivable12.12. Bad Debt Account PayableBad Debt Account Payable13. 21 day rule

Bad Debt Account PayableBad Debt Account Payable

• Base on invoice date, GST is claimed. After six month, if no payment to the supplier, GST is payable to Customs.


• OMNI2UACCOUNT able to handle and alert the user for Bad Debt payableBad Debt payable.


11. Bad Debt Account Receivable12. Bad Debt Account Payable13.13. 21 day rule21 day rule

21 Day Rule21 Day Rule

• DO issued but invoice not issued within 21 days. GST is charged base on DO date.

• Deposit collected but invoice not issued within 21 days. GST is charged base on deposit collected date.