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.
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.