To ensure purchase return transactions are reported correctly under SST, follow the steps below to set up a new tax code and process the purchase return.
Step 1: Set Up a New Tax Code
Go to Maintenance, Miscellaneous Files, and select Tax Code Maintenance
Click Add a new tax code:
Tax Code: PTC1
Type: Purchases
Tax Method: SST Field 19
SST: Sales
Step 2: Create a Purchase Return Transaction
Go to the Supplier & Purchases, Purchase Adjustments, and select Debit Note. Now, select Purchase Return and select Create Purchase Return.
Under SST classification, choose PTC1.
Also, the bill type of Purchase Return is D
This amount will be reported in Part E (Purchase under Schedule C) row 19 in the SST Return Report.