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<ManualTopic ID="/baanerp/tf/onlinemanual/000080" xml:lang="en">
   <Header>
      <Title>Open Market Value</Title>
      <Keyword type="header" order="d1e1625543">
         <Level1>OMV, GST tax</Level1>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>Invoices are generated for the gift items purchased for
		employees. The <GUIRef href="/baanerp/tf/gld/tfgld9120m00c#tfgld920.emmv" role="manual">Maximum amount</GUIRef> for GST calculated Deemed
		Supplies(Gifts) is specifed as 500 MYR, in the <GUIRef href="/baanerp/tf/gld/tfgld9120m00c" role="session">GST Parameters (tfgld9120m00c)</GUIRef> session.</Paragraph>
   </AimSection>
   <GeneralSection>
      <SectionTitle>OMV is considered for GST calculation:</SectionTitle>
      <List>
         <ListItem>The supply of services of business assets is for personal use.</ListItem>
         <ListItem>A taxable person presents a gift to a connection or to the sole
		  proprietor or directors of the company.</ListItem>
         <ListItem>The value of the goods has depreciated over the period of time,
		  and the company must use open market value of the goods to account for
		  GST.</ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Following deemed supplies are considered as
		gifts:</SectionTitle>
      <List>
         <ListItem>Gifts purchased through invoices- The gifts or supply items
		  purchased for employee / connected persons to company / directors / customers /
		  business partners.</ListItem>
         <ListItem>Gifts given out of fixed assets of the company- The company
		  asserts used by the employee.</ListItem>
         <ListItem>Gifts given from inventory of the company-This gift issued to
		  employees from specific warehouse.</ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Set up Process for OMV</SectionTitle>
      <Paragraph>The output GST tax for Deemed Supplies- Gifts is also based on
		the present open Market value of the supplied gift item.</Paragraph>
      <GeneralSection>
         <SectionTitle>Prerequisites to set up OMV:</SectionTitle>
         <Paragraph>OMV must be specified in the specific ledger accounts for
		  calculating Deemed Supplies- Gifts tax in the GST parameter (tfgld9120m00c)
		  session.</Paragraph>
         <List>
            <ListItem>Deemed supplies in the Gift Rule section must be set to “Open
			 Market Value” to calculate the tax amount for the Deemed Supplies- Gifts in
			 case the OMV is different from the transaction value.</ListItem>
            <ListItem>Purchase invoice lines determine the expense account and
			 employee dimension to calculate the output tax amount. <GUIRef href="" role="manual">Note</GUIRef>: If the Purchase
			 invoice is for purchase order the tax is set as “Cost To be specified” which
			 determines the expense account and employee dimension.</ListItem>
            <ListItem>For the type of gifts given out of fixed assets of the
			 company, you can separate the journal voucher in the debit line to determine
			 the expense account and employee dimension.</ListItem>
            <ListItem>For the type of gifts given from inventory of the company,
			 you can separate the journal voucher in the debit line to determine the expense
			 account and employee dimension. <GUIRef href="" role="manual">Note</GUIRef>: System debits this transaction to an
			 expense account used in integration mapping scheme.</ListItem>
         </List>
      </GeneralSection>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Deemed values OMV</SectionTitle>
      <Paragraph>The supply of goods whose value is not considered (that is,
		deemed supply of assets belonging to a person who ceases to be a taxable person
		) is deemed as a supply under certain conditions. The value of the supply with
		no consideration is based on the open market value (OMV) of that
		supply.</Paragraph>
      <Paragraph>A sales order can be processed for zero amount or a lower
		amount. The tax base value and the GST value must be calculated based on the
		OMV.</Paragraph>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <Paragraph>ABC company bought furniture for the office at RM7,000. The
		  company, decides to donate the furniture to a charity organization. The
		  disposal of the furniture is a supply of goods by ABC . In identifying the
		  value of the supply of the furniture, the company must consider the open market
		  value of the furniture, at the time of the disposal (giving it to charity).
		  Assuming that the open market value of the supply is RM6,800. The GST for the
		  supply is :</Paragraph>
         <Paragraph>= RM6,800 X 6/106</Paragraph>
         <Paragraph>= RM384.91</Paragraph>
      </ExampleSection>
      <GeneralSection>
         <SectionTitle>Implementing OMV on a sales order</SectionTitle>
         <ProcedureList>
            <ListItem>In the <GUIRef href="/baanerp/td/sls/tdsls4100m900" role="session">Sales Order - Lines (tdsls4100m900)</GUIRef> session, create a sales order line. Click the order
			 line.</ListItem>
            <ListItem>In the <GUIRef href="/baanerp/td/sls/tdsls4101m000" role="session">Sales Order Lines (tdsls4101m000)</GUIRef> session, in the tax tab, set the value in the <GUIRef href="/baanerp/td/sls/tdsls4101m000#tdsls401.cvat" role="manual">Tax Code</GUIRef> field to Deemed Supplies.</ListItem>
            <ListItem>In the <GUIRef href="/baanerp/td/sls/tdsls4100m900" role="session">Sales Order - Lines (tdsls4100m900)</GUIRef> session, for the specified order, select the <GUIRef href="/baanerp/td/sls/tdsls4101m000#tdsls401.omvi.c" role="manual">OMV is Applicable</GUIRef> check box and specify a value in the <GUIRef href="/baanerp/td/sls/tdsls4101m000#tdsls401.omva.c" role="manual">OMV in MYR</GUIRef> field.</ListItem>
            <ListItem>Approve and process the sales order.</ListItem>
            <ListItem>Process and finalize the sales order invoice generated. <GUIRef href="" role="manual">Note</GUIRef> The order is processed
			 for, Order line Amount + Tax based on OMV – Discounts, if any.</ListItem>
            <ListItem>Use the <GUIRef href="/baanerp/ci/sli/cisli2200m000" role="session">Compose/Print/Post Invoices (cisli2200m000)</GUIRef> session, to view the corresponding GST
			 invoice</ListItem>
            <ListItem>Run the <GUIRef href="/baanerp/tf/gld/tfgld9421m00c" role="session">Print GST Return (GST - 03) (tfgld9421m00c)</GUIRef> session. The tax base amount and the GST
			 values are updated in the sections 5a, 5b and 19 of the report.</ListItem>
         </ProcedureList>
      </GeneralSection>
   </GeneralSection>
</ManualTopic>