GST Implementation for Malaysia

Localisation – GST Implementation for Malaysia

About Swisslog

Swisslog designs, develops and delivers best-in-class automation solutions for forward-thinking hospitals, warehouses and distribution centers. Swisslog is an inspiring global organization in more than 20 countries on four continents and customers in more than 50 countries. Headquartered in Buchs/Aarau, Switzerland, the Swisslog group is organized in two business areas, Healthcare Solutions (HCS) and Warehouse & Distribution Solutions (WDS). 

GST Malaysia:

The Goods and Services Tax (GST) is a value added tax in Malaysia. GST is levied on most transactions in the production process, but is refunded to all parties in the chain of production other than the final consumer.

GST Implementation challenges:

• Limited knowledge on Tax codes by business
• Short duration for GST implementation
• Migration of master data and transaction data from legacy system (MYOB) to SAP
• Fulfilling legal compliance
• Generation of FORM-03

Implementation methodology:

There are 12 work packages in the implementation

• GST Project plan: Project plan to implement GST.
• GST Business blueprint: Blueprint covering Tax codes and business scenarios
• GST Issue tracker: Tracks GST regulation, process and technical issues
• RMCD inquiry register: Tracks GST inquiries
• GST IT Blueprint: Blueprint covering the IT process landscape
• GST OCM: GST change management
• GST IT Landscape strategy: IT landscape covering interface to RMCD
• GST Testing strategy: Testing strategy and test coverage
• GST Master data management: Vendor and Material master maintenance
• GST RICEFW: GST related forms, reports and interfaces
• GST Training strategy: Training strategy covering all the stake holders

GST Implementation:

GST Implementation covers organization structure, master data and documents that is affected by the implementation of GST in the SAP system

Organization structure:

• Company code: Swisslog Malaysia has one active company code in SAP system and the company is located in Kuala Lumpur. The company is not located in Duty-Free Zone or Free Trade Zone or Super Economic Corridor.

•  Plant code: Swisslog Malaysia has one active plant code.

Master data:

• General Ledger: The GL accounts are activated and the standard chart of accounts (COA) is being used across the groups. 

• Customer master data: Around 250 active customer master records and ship to parties are maintained in SAP. There is no interface to/from for customer master records in SAP system. 

• Vendor master data: Around 250 active customer master records and ship to parties are maintained in SAP. There is no interface to/from for customer master records in SAP system. 

• Material master data: Approx. 10000 active materials are maintained in SAP. There is no interface to/from for customer master records in SAP system.

Business Process coverage:

GST on Sales and Purchases between Group companies.

• Import of Services.
• Bad Debt Relief
• Credit Memo / Debit Memo processing
• Rebate Processing
• Asset Disposal / sales
• Automatic Calculation of GST expected
• Customer Down Payment Processing
• Export Sales for Goods /Services.
• Free of Charge Sales
• AP & AR Down Payment
• Sales with Foreign Currency
• Third Party Processing.
• Subcontracting
• Employee benefits – Loans and Advances
• Travel claims and reimbursements

Documents:

The below list of documents are affected by GST:

• Purchase Order
• Sales order
• Billing document
• Accounts receivable – open item
• Accounts payable – open item
• External vendor invoice
• External customer invoice

Reports and Forms:

The below list of forms and reports are required for GST:

• FORM-03
• GST Audit File (GAF)