Implement an automated tax exemption process in SAP for goods used in manufacturing in Malaysia.
As a result, the client improved its cash flow by automating specific manual and time-consuming MySST processes in Malaysia, thereby reducing related tax risks.
The client is an American multinational company operating in the confectionery, food, beverage, and snack sectors. With an annual revenue of approximately $26 billion, the company has a presence in about 160 countries. In Malaysia, the client has manufacturing operations and must adhere to specific tax regulations.
In Malaysia, reporting requirements concern the exemption for goods procured for use in manufacturing. Companies typically manage this requirement manually, which involves providing the Goods Movement report in a specific format mandated by the MySST authority. This process can be time-consuming and pose tax-related risks.
KGT's integrated SAP add-on for Malaysia's Sales and Service Tax includes features such as validating exemption certificates, generating validation reports for C1 and C3 forms, a user exit to capture K1 documents, Import Goods Custom Department Clearance Documents, and material goods movement reporting for tax audits. Additionally, the solution provides an email functionality that generates notifications for business users to create or update C1 and C3 forms during contract negotiation, purchase order creation, and goods receipt. The solution is delivered as a turnkey implementation and includes training. Furthermore, the SAP add-on has its area menu and does not require changes to existing SAP business processes.
KGT commenced the project with workshops to gather business and tax requirements from the local team. Based on this information, KGT developed and configured the SAP add-on. After user acceptance testing, the client successfully implemented the add-on into production before the established deadline.
During the transition from the As-Is to the To-Be process, KGT did not concentrate solely on tax compliance. Instead, the team engaged its SAP expertise to streamline the compliance reporting process and took a consultative approach with the client and product owner. KGT's solution meets tax requirements, is user-friendly, and minimally alters existing workflow processes. It enables business users to automate the generation of MySST reports with little or no manual intervention. Rather than suggesting process changes, KGT updated its core MySST module to integrate seamlessly with existing business operations.
KGT is a SAP partner for PE services and SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409
