Challenge
A US multinational operating in the confectionery, food, beverage, and snack sectors faced significant compliance and efficiency challenges in Malaysia. Local MySST regulations require reporting exemptions for goods procured for manufacturing. Most companies manage this process manually, preparing Goods Movement reports in formats mandated by the authorities. This approach is time-consuming, error-prone, and exposes businesses to tax risks.
KGT’s Solution
KGT implemented its integrated SAP add-on for Malaysia’s Sales and Service Tax (MySST), designed to automate and streamline exemption reporting. The solution included:
- Validation of exemption certificates and automated generation of C1 and C3 validation reports.
- Capture of K1 import documents and Goods Movement reporting for audit readiness.
- Email notifications to business users for timely creation or updates of C1 and C3 forms during contract negotiations, purchase orders, and goods receipts.
- Turnkey implementation including training and an SAP area menu - with no changes required to existing SAP business processes.
Results
- Automated: Eliminated time-consuming manual reporting tasks.
- Compliant: Fully aligned with Malaysian MySST exemption rules.
- Efficient: Improved cash flow and reduced tax-related risks.
- User-friendly: Seamless integration with existing SAP processes, requiring minimal workflow changes.
The project began with workshops to gather requirements from the client’s local team. After development, configuration, and user acceptance testing, the add-on was successfully implemented into production ahead of schedule.
Impact
KGT’s consultative approach went beyond compliance. By leveraging SAP expertise, we simplified the reporting process while maintaining business operations. The client now benefits from an end-to-end automated exemption process that ensures compliance, reduces manual effort, and supports sustainable growth in Malaysia.
Looking to automate complex local tax processes in SAP?
Let’s talk. KGT delivers turnkey solutions that integrate seamlessly with your business.
