This article relates to the Goods & Services Tax (GST) which was introduced in April 2015, but was subsequently replaced with the Sales & Service Tax in September 2018.
In preparation for the change of GST rate from 6% to 0% on 1st June 2018, here is a checklist of tasks that must be performed:
Order Entry
- All orders dated before 1st June 2018 must be shipped and invoiced.
- Orders dated on or after 1st June 2018 should use the 0% GST tax rate.
- Post all Order Entry batches to update Accounts Receivable.
- Any Order Entry credit or debit notes dated on or after 1st June 2018 should use the original Tax Invoice information.
Purchase Order
- Enter and post all vendor invoices dated before 1st June 2018.
- If you receive vendor invoices after 1st June 2018, but dated before that, use the original tax group at 6% and post to current month.
- Vendor invoices dated after 1st June 2018 should be entered using the new GST tax rate of 0%.
- Any Purchase Order credit or debit notes dated on or after 1st June 2018 should use the original Tax Invoice information.
Accounts Receivable
- Post all AR Invoice, Credit Note and Debit Note transactions dated before 1st June 2018
- For Credit or Debit Notes dated on or after 1st June 2018, post the transaction to the respective period using the original Tax Invoice information if the invoice was issued prior to 1st June 2018.
- All Miscellaneous Receipt transactions before 1st June 2018 should be posted as well
- You can continue using the Bad Debt Relief until all invoice transactions rated at 6% are cleared
Accounts Payable
- Post all AP Invoice, Credit Note and Debit Note transactions dated before 1st June 2018
- For Credit or Debit Notes dated on or after 1st June 2018, post the transaction to the respective period using the original Tax Invoice information if the invoice was issued prior to 1st June 2018.
- All Miscellaneous Payment transactions before 1st June 2018 should be posted as well
Bank Services
Post all Bank Entry, Transfer, Interest and Charges dated prior to 1st June 2018 after closing Accounts Receivable and Accounts Payable.