| # Malaysian GST - Debit Note Adjustments The debit note is issued by the supplier when the amount that is already invoiced to the business partner, is increased. For example, wholesale dealer charges a lower price to the retailer. You can add a declaration in the GST return document (return amendment) in the taxable period in which the debit note is issued. You can process the debit notes (purchase credit notes in Infor LN) either using order related invoices (return purchase order) and credit invoice matching or using GLD (general ledger) with manual purchase credit transactions. When updating the non-finalized transactions (finalization of the transactions), the Kind of Adjustment field must be set to Debit Note. GST adjustments for debit note When the debit note is issued: If the supplier has already paid the output tax, must increase the output tax in the GST return (return amendment) for the taxable period in which the debit note is issued. If the buyer has already paid the input tax, must increase the input tax in the GST return (return amendment) for the taxable period in which the buyer receives the debit note. Example On 20/10/2015, ABC Enterprises issued a tax invoice to XYZ for RM10,000 including GST 6%. For a specific transaction in the taxable period for October: ABC Enterprises accounts an output tax of RM600 (that is, RM10,000 * 6%). XYZ claimed an input tax of RM600 (that is, RM10,000 * 6%). On 10/11/2015, ABC Enterprises created a debit note for the amount of RM1000+GST 6%. In the taxable period for November: ABC Enterprises must adjust the amount by increasing the output tax by RM60 (that is, RM1000 * 6%). XYZ must adjust the amount by increasing the input tax by RM60 (that is, RM1000 * 6%). Related topics Malaysian GST - Credit Note Adjustments |