<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000410" xml:lang="en">
   <Header>
      <Title>Malaysian GST - Credit Note Adjustments</Title>
      <Keyword type="header" order="d1e1627130">
         <Level1>GST</Level1>
         <Level2>Credit note</Level2>
      </Keyword>
      <Keyword type="header" order="d1e1627135">
         <Level1>Credit note</Level1>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>The credit note is issued by the supplier when the amount that
		is already invoiced to the business partner, is reduced or the transaction is
		cancelled. For example, a decrease in the price because of the low
		quality.</Paragraph>
      <Paragraph>You can add a declaration in the GST return document (return
		amendment) in the taxable period in which the credit note is
		issued.</Paragraph>
      <Paragraph>You can process the credit notes either using order related
		invoices (return sales order), or using GLD (general ledger) with manual credit
		note transactions.</Paragraph>
      <Paragraph>When updating the non-finalized transactions (finalization), the
		Kind of Adjustment field must be set to <GUIRef href="/baanerp/tf/domains/gld.gsta.c#credit.note" role="option">Credit Note</GUIRef>.</Paragraph>
   </AimSection>
   <GeneralSection>
      <SectionTitle>GST adjustments for credit note</SectionTitle>
      <Paragraph>When the credit note is issued:</Paragraph>
      <List>
         <ListItem>If the supplier has already paid the output tax, decreases the
		  output tax in the GST return (return amendment) for the taxable period in which
		  the credit note is issued.</ListItem>
         <ListItem>If the buyer has already paid the input tax, must decrease the
		  input tax in the GST return (return amendment) for the taxable period in which
		  the buyer receives the credit note.</ListItem>
      </List>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <Paragraph>Goods sold on 20/07/2015 by company A to company B, amount to
		  RM1000 plus GST 6%. The goods of the amount RM200 plus GST 6% are returned on
		  10/08/2015 to company A. The company A issues a credit note on
		  25/08/2015.</Paragraph>
         <List>
            <ListIntro>Company A (Seller/ Supplier)</ListIntro>
            <ListItem>July 2015 (Return)</ListItem>
            <ListItem>Output tax: RM1000* 6% = RM60</ListItem>
            <ListItem>August 2015 (Adjustment)</ListItem>
            <ListItem>Decrease output tax: RM200 * 6% = RM12</ListItem>
         </List>
         <List>
            <ListIntro>Company B (Buyer/ Customer)</ListIntro>
            <ListItem>July 2015 (Return)</ListItem>
            <ListItem>Input tax: RM1000* 6% = RM60</ListItem>
            <ListItem>August 2015 (Adjustment)</ListItem>
            <ListItem>Decrease input tax: RM200 * 6% = RM12</ListItem>
         </List>
         <Paragraph>The amount is adjusted by declaring the related output and
		  input tax in the form GST - 03.</Paragraph>
      </ExampleSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tf/onlinemanual/000411" role="manual">Malaysian GST - Debit Note Adjustments</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>