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Hello everyone,

I am participating in an implementation project in one of our Malaysian branches, introducing a new (non-SAP) logistics ERP system and SAP Financials (ECC 6.04). Systems go-live is 01 April 2015, same day as the introduction of the Goods-and-Service Tax (GST). I would like to share my experiences and decisions taken in regard to the GST here in this and following blog entries.

Landscape

In our environment, the (non-SAP) logistics system is responsible for Sales Order and Purchase Order entry, Goods Issue/Receipt and Invoice Issue/Receipt handling. The later resulting in financial documents being interfaced to the SAP Financials system.

SAP Notes in a nutshell

  • 1932169: blanket note by SAP to support the GST implementation in Malaysia.
  • 2070289: technical changes to be implemented / ABAP dictionary objects
  • 2073648: description of the report for GST-03 conforming calculation
  • 2014530: technical details for PDF output of GST-03 report

Issues identified / Decisions taken

  • All 10 output tax codes and 13 input tax codes to be created in both systems and mapped 1:1. We have taken down the proposal to have only 0% and 6% being interfaced from the local system and then to decide in SAP which code to assign in the end. Customer, Vendor and and Materials master data have to be provided with the defaulted tax codes in the logistics system, users need to be able to adjust those during order creation and latest at the time of invoice entry.
  • Suggestion from the tax advisors to add a separate Fixed Asset acquistion tax code, destined for GST-03 report field 16.
  • Reverse charge mechanism: validated twice by tax advisors to post this during payment, not invoice entry.
    Technical solution pending, I’m very open for your suggestions here!
  • GST Audit File: Still waiting for SAP what they will provide.
    Our assumption is that this does not have to be ready by 01 April 2015 but latest at the time of a tax audit.

Best Regards,
Christoph

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4 Comments

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    1. Christoph Gilberg Post author

      Thanks, Sridhar! I’ll create a new entry next week to share some experiences with the configuration and testing of the RPFIMY_GST (GST-03) report.

      Best Regards,

      Christoph

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      1. Mohd Shazaly A J

        Hi Christoph Gilberg, kudos for covering on on GST Malaysia topic.

        Any update on RPFIMY_GST report testing? I’ve implemented the notes and found out that although the report look similar like S_ALR_87012357 – Advance Return for Tax on Sales Purchases, I found out there’s:-

        1. No Program Documentation button
        2. No Output Control parameters
        3. No Posting Parameters
        4. Add GST-03 Parameters

        And one things for sure the report able to prepare a printout to RMCD (Royal Malaysia Customs Department) and technical details of this report can refer to note 2073648.

        Regards

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        1. Christoph Gilberg Post author

          Hello Mohd,

          I’m sorry for coming back so late on your post. I have to say that the SAP Note description was enough for the configuration and delivering the results. I do agree however that the output control for GST-03 has some room for improvement. We are not using the printout function, thus not installing the Adobe add-on.

          The results of the Report RPFIMY_GST are just sub-totaled by ‘GST Field’, this is sufficient for us.

          Please elaborate on what else you miss, I find this very helpful.

          Best Regards,

          Christoph

          (0) 

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