| # Trade notes payable Trade notes payable (TNPs) are documents that you send to a supplier with the commitment to pay the amount due after a certain period of time (a bill of exchange). Stamp tax If you must pay stamp tax on trade notes, you can set up stamp tax as described in To set up stamp tax. Trade notes division Sometimes the total payable amount is divided into multiple trade notes of smaller denominations. Instead of issuing one trade note for the entire amount, companies issue multiple trade notes that together cover the amount. Dividing trade notes can be done for two reasons: To create trade notes of smaller amounts that can be either discounted or endorsed. The maximum amounts of such trade notes depends on the agreement between the company and the business partner. To minimize the amount of revenue tax (stamp tax) to be paid. If you specify that trade notes must be split into trade notes of smaller amounts, when you create a trade note LN automatically divides the trade note amount according to the selected division method and generates a number of trade notes for the resulting amounts. If you receive instructions from your business partner about how to divide the trade notes, you can set up the trade notes division data for the business partner. If you divide the trade note to minimize the amount of stamp tax to be paid, you can set up the trade notes division data according to the stamp tax tariffs. Refer to Trade notes division for more details. Trade note steps A trade note payable can be issued or accepted/sent to supplier. When you define a trade note payment method or receipt method, you can select the steps to be performed on the trade note. Some steps are only available for trade notes payable, and some only for trade notes receivable. Of some steps, the availability depends on the selection of other steps. For some steps, you can indicate that the step is optional. The trade note's status always indicates the last step performed on the trade note. Trade notes payable can have the following statuses: Open (initial status) Received or Issued Sent to BP Accepted/Sent Paid ( Settled) Void Cancelled Dishonored Refer to To set up trade notes for details on how to select the steps for each type of trade note. Related topics To process trade notes To set up stamp tax To set up trade notes Trade notes division Malaysian GST - Credit Note Adjustments |