Tax Configuration

What You’ll Learn

In this module, you’ll explore how BigLedger handles taxes - from configuring SST rates to generating tax reports. You’ll see how the system ensures compliance with government directives and LHDN requirements.

Before You Begin: Key Terms Explained

Why This Module Matters

Tax management is essential because:

• Legal compliance - Must charge and report correct taxes
• E-Invoice requirement - Tax codes must align with LHDN requirements
• Audit readiness - Tax records must be accurate and complete
• Government reporting - Regular submissions to tax authorities

Test Scenario 1: View Tax Rates

Objective: See configured tax rates

Time: 2 minutes

Step-by-Step Instructions

1. Navigate to: Settings → Tax Configuration → Tax Rates

2. View the list of tax rates

3. Notice the key information:

   Column	Description
   Tax Code	Short identifier (SST-6)
   Description	What the tax is for
   Rate	Percentage (6%)
   Effective Date	When this rate applies
   Tax Type	Service, Sales, Withholding

Common Tax Codes You’ll See

Test Scenario 2: Create a New Tax Rate

Objective: Add a new tax rate (for finance staff, no IT needed)

Time: 3 minutes

Step-by-Step Instructions

1. Navigate to: Settings → Tax Configuration → Tax Rates

2. Click “New Tax Rate”

3. Fill in the details:

   Field	Example
   Tax Code	SST-8
   Description	Service Tax 8%
   Rate	8%
   Tax Type	Service Tax
   Effective Date	Future date
   GL Account	Select tax payable account

4. Save the tax rate

What to Notice

• No technical skills required
• Clear form with help text
• Validation prevents duplicate codes
• Audit trail records who created it

Test Scenario 3: Tax in Sales Invoice

Objective: See how tax is automatically calculated

Time: 3 minutes

Step-by-Step Instructions

1. Navigate to: Sales → Sales Invoice → New Invoice

2. Add a line item with a taxable service

3. Select the tax code (e.g., SST-6)

4. Observe the automatic calculation

What You’ll See

What Happens Behind the Scenes

• Tax amount calculated automatically
• Correct GL accounts used (Revenue vs Tax Payable)
• E-invoice generated with proper tax codes
• Tax reports updated

Test Scenario 4: Tax in Purchase Invoice

Objective: See how input tax is handled

Time: 3 minutes

Step-by-Step Instructions

1. Navigate to: Purchasing → Purchase Invoice → New Invoice

2. Add a line item with tax

3. Observe the tax treatment

What You’ll See

Input vs Output Tax

Test Scenario 5: Tax Exemptions

Objective: See how exemptions work

Time: 2 minutes

Step-by-Step Instructions

1. Navigate to: Settings → Tax Configuration → Tax Exemptions

2. View the exemption categories:

   Category	Treatment
   Zero-Rated	0% tax, still reported
   Exempt	No tax, excluded from returns
   Out of Scope	Not subject to tax law

3. See how exemptions are applied to customers or items

When You’d Use This

• Educational services (often exempt)
• Government supplies
• Exported services (zero-rated)

Test Scenario 6: Withholding Tax

Objective: See withholding tax configuration

Time: 3 minutes

Step-by-Step Instructions

1. Navigate to: Settings → Tax Configuration → Withholding Tax

2. View the withholding tax rules

What You’ll See

How It Works

When you pay a supplier subject to withholding tax:

1. System calculates the withholding amount
2. Net payment to supplier is reduced
3. Withheld amount posted to tax payable
4. Reports generated for LHDN submission

Test Scenario 7: Tax Reports

Objective: Generate tax reporting

Time: 3 minutes

Step-by-Step Instructions

1. Navigate to: Finance → Tax Reports

2. Generate available reports:

   Report	Purpose
   SST Summary	Total output and input tax
   Tax by Code	Breakdown by tax code
   Tax Ledger	Transaction details
   E-Invoice Summary	E-invoice tax totals

3. Export for filing

What to Notice

• Reports match LHDN required formats
• Can be exported for government submission
• Drill-down to individual transactions

Your Progress Checklist

Mark off what you’ve completed:

Key Takeaways

After completing this module, you’ve seen that BigLedger:

Quick Reference: Navigation

Congratulations!

You’ve completed all modules in the UTM Integrated Financial System evaluation!

Summary of What You’ve Evaluated

Next Steps

For questions or to schedule a deeper demonstration:

• Demo Coordinator: fatimah@bigledger.com
• Technical Support: support@bigledger.com
• Sales Inquiries: sales@bigledger.com

Reference: UTM Tender B.30/2024