How to generate SST Bad Debt and Bad Debt Recovery

Created by QNE Software Sdn bhd, Modified on Mon, 31 Jul, 2023 at 4:16 PM by QNE Software Sdn bhd

Question:

How can I generate SST Bad debtor if the customers have outstanding

payment more than 12 months?

What is the SST Setting for Bad Debt & Recovery?

Solution

SST Bad Debt & Recovery Configuration

General Ledger > Chart of Account, ensure that you have an account under Current Assets named as “SST OUTSTANDING SERVICE TAX”.

2. GST/SST > GST/SST Settings, under Preset Accounts, ensure that you have configure for below setting.

Here is the reference that these accounts are created under Chart of Account

Generating SST Bad Debt

3. GST/SST > SST Advisor, update the taxable period which you are going to submit

for tax.

Note: This is not mean the Invoice date but is the SST submission period

4. System displays list of outstanding invoices more than 12 months within this

taxable period. Tick the invoices > Create SST Bad Debts, system will prompt message

Are you sure you want to create SST bad debt relief for the selected record(s)?

Click Yes to proceed

5. System will continue prompt below message

Journal entry has been generated successfully!

Do you want to open the journal?

Click Yes.
System already created a Journal Entries for Bad Debt

6. Check Service Tax Return, system has posted to the report.

Generating SST Bad Debt Recovery

7. Customer make payment > Update in Receive Payments and knockoff the invoices

8. Update the taxable period for SST Submission > System will list out the document

to be recovered under “Payment Recover”.

Tick the document to be recovered, system will prompt below message

Are you sure you want to create SST bad debt recover for the selected record(s)?

Click Yes to proceed

9. System will continuously to prompt below message

Journal entry has been generated successfully!

Do you want to open the journal?

Click Yes to proceed

10. System will create for SST Recovery document under Journal

11. If we check Service Tax Return,

system display the posting from RV and also the revert from JV (SST Bad Debt Recovery)

Thus, system will not have any posting to SST-02 report.

Note:
if we check the account code SST-9000 (SST OUTSTANDING SERVICE TAX)

under Account Inquiry, system will display as 0.00 if the Bad Debt & Recovery has proceed.

Please refer to attachment

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