How to Set SST Accounting Basis

SST Accounting Basis determines when sales and service tax is recorded in your business accounts. You can choose between a Cash Basis, where tax is recorded when payments are received, or an Accrual Basis, where tax is recorded when invoices are issued. Selecting the right basis type ensures your tax reporting complies with regulations and aligns with your business cash flow. SST 6% and SST 8% apply to service tax, while other taxes fall under sales tax.


How to Set SST Accounting Basis

1. Click on Profile and select Settings

2. Click on Taxes

3. Click on SST

4. Select a basis 

(For explanations, please refer to 4.1 below the image)

4.1 Explanation of SST Accounting Basis

1. Accrual Basis: Tax is recorded when the invoice is issued, regardless of when the payment is received.
2. Cash Basis: Tax is recorded when receiving payment(whether partial or full) for services or goods.

5. Click on Sales and select Sales Invoice

6. Click on Add New

7. Click on Sales Invoices and create a sales invoice with tax

(If you don't know how to create a sale invoice, you may refer to: How to create a Sale Invoice)

8. Click on GST/SST and select SST Returns

9. Click on Value of Tax Payable

10. Click on Total Value of Tax Payable

11. Here you can filter a date 

(Invoices created before selecting/switching a basis will be displayed here)

12. Here you can view the invoices 

(If you select cash basis as your SST accounting basis, invoices with service tax (SST 6% or SST 8%) will not be displayed here until they are paid. For invoices with sales tax, they will appear in the list whether paid or unpaid)