Scenario: A bad debt relief is accounted for an invoice after six months of no payment is paid to the supplier. Later on, you cleared your debts after you have registered that invoice as bad debt relief for purchase.
In such case, when payment are made against purchase bad debt relief, GST claim back is required - Bad debt recovery for purchase.
Bad debt recovery for puchase in TreezSoft
In TreezSoft cloud accounting, the process has been simplified through automation and integration. When you issue bad debt relief on a purchase you made previously, TreezSoft cloud accounting captures the repayment that is tied with the bad debted supplier invoice and will automatically update the bad debt recovery for you. You do not have to key in the required information multiple times as the automation process that has in placed in TreezSoft improves the process flow. Hence, reducing time and effort needed for these time lengthy procedures!
To issue Bad Debt Recover for purchase, navigate through: Supplier > Make Payments.
Then click on 'Make New Payment'.
Next, follow the following steps:
1. Select Supplier.
2. Choose the account to be applied.
3. & 4. Enter the amount to be applied.
5. Tick on supplier invoice(s) that is to be applied.
6. If any applied supplier invoice has issued bad debt relief previously, system will automatically detect and calculate total relief to be recovered.
7. Save.
Supplier bad debt recover is now automatically created.
You can verify the supplier bad debt recover documents by navigating through: Tax > Supplier Bad Debt (AP) > Bad Debt Recover (AP).
Then, click on Ref No. to view the document.
Note: Bad debt recover transaction and double entry would be automatically created by system after saved.
You can read more on GST in TreezSoft by visiting these links:
TreezSoft is a cloud accounting software that aims to increase our clients efficiency in their business financial health management. We do so by integrating and automating accounting processes as much as we can (e.g. integration between our accounting software and POS system and double entry). we also allow users to create unlimited users for FREE for your account in TreezSoft.
Visit TreezSoft at http://www.treezsoft.com/ to sign up for a 30 days trial account with us!
You can also email us at [email protected] for more enquiries.