Malaysia GST - Is your Accounting System ready for GST implementation?

ERP SYSTEM

#GST5

Do you know what to do if you are an existing ERP users like SAP B1, SAP B1 on Cloud, SAP ECC, and Microsoft AX when comes to GST implementation next year?

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Here are the things that you need to consider:
1) Project Initiation -

•  Setup a project team for this mini GST project. 
•  Identify all the existing business processes. If you have not done any update to your process  flows for a long time, you must well take this opportunity to do it this time. Note: You may want to review only the GST related processes.
• Ask your implementation partner for all the data migration templates for the updates of AR, AP and the material master data. For example, you need to update all your customers master data with the GST registration number. Note: Most companies will register with custom for GST    status by end of this year (31/12/2014), your vendors and customers may have given you the    GST registered number to you prior to 1 April 2015. The data migration templates, can be created in notepad format or usually I see them in Microsoft Excel format. 
• Sign-off the phase

2) Project Preparation

•  Most likely you have your appointed external consultants or even internal support team join      the mini project
•  Create project plan and project charter for this project. With the project plan, the whole team  will know exactly when they are needed during the project so that they can plan for their          schedules especially in most companies, the staff will have their regular job to do besides the  mini GST project. Ideally do not proceed with any further work if the project charter is not        signed off by the respective persons. As to who needs to sign on the documents will be another  topic that we can discuss further. Project goals, scopes and objectives are clearly defined in the document therefore it is important to have everyone to agree beforehand. If you have Microsoft Project, you can use it to create your project plan. For project charter, you can document it using Microsoft Word.
• In case you have started with data migration activities as per Project Initiation and you are not sure of certain fields required by the templates, take this opportunity to clarify with the person who provides you with the templates. Note: Some may argue it is too early to do data migration at this stage so I will leave it to you and the experts.
• Sign-off the phase

3) Business Blueprinting

• In this phase, we will will review all the "AS IS" (existing) processes of the Company especially those relating to GST. You may obtain them from the key users. If all the existing key users are new to the Company or there is no up to date documentations available since the last implementation, what you can do maybe request the Vendor to assist in creating one for you.
• We will identify the number of forms and reports needed to be changed in order to comply with GST requirements. Discussion with the key users. Note: Customization of forms and reports will take a bit of time especially if you have many to do.
• Update all the business processes flows. You can do it using Microsoft Visio or any flowcharts software. You may even do it in Microsoft Words or Excel.
• Once all the revised business processes flows have been discussed with the key users and agreed. Have them signed off to mark the completion of the phase before you must to the next phase. The signed off is critical for this project as the internal or external consultants who will be doing the changes to the system will be based on what has been agreed. For example, say if you have agreed to allow only Mr. A to access to a certain report and the consultant will configure accordingly in the next phase to allow only Mr. A to access. Therefore if Mr. B or anyone wants to access, the system will not allowed.
• Sign-off the phase

4) Project Realization 

• Configuration to the system by the consultants or any expert familiar with the system. They will configure according to the approved blueprint in the previous phase. 
• After configurations, the consultants will do testings in the system before roll out to key users for testing. Test scripts documentation need to be prepared here. It will be best if the test scripts are prepared by both the consultants and key users. If possible involve the end users as they may give you more inputs on this. The testing can be done manually or automatically. If you are using SAP ECC, then you can use TCode: secatt for your automation testing. I will not discuss how it is use here, maybe in the future I will write a blog on ECATT. (Don't confuse ECATT and SECATT here). Just google it to find out more if you are interested.
• User Acceptance Testing by the key users. The key users will do th
• Immediately after the configuration and testing, the consultants will prepare the functional specifications for all the changes need to be done on the forms and reports. There are new forms and reports maybe required during the process, this can be considered at this stage also. I suggest if the time does not permit because we have less than 153 working days (refer to my other blog on the number of remaining working days before GST go live) to do all the tasks. After the functional specifications created by the consultants, the technical team will create the technical specifications. Note: Personally, I think we can combine the functional and technical specifications into one documentation. Anyway, I will leave it to you.
• Sign-off the phase

5) Final Preparation

• End user training. In practice we normally encourage TRAIN THE TRAINER in a project. This is how it work, the consultant will train the key users and the key users will eventually teach the end users. Key users - refer to the process owners to the module or it can be for the department. End users, I am referring to those who spend most of their time in the system.
• Cut-over discussion and finalized the strategy to apply. This step is very important and for GST Implementation, let's try to do the cut-over around March 15 2015.
• Complete all the customization forms and reports development and testing. Documentation needed here is the end user manual so that it can be used as training materials and references to the staff.

6) Go Live

• Go Live 1 April 2015
• Submit your first GST_03 one month after the go live date. If your annual turnover/sales do not reach RM5 million then your submission will be on a quarterly basis.

Hope it will help in your implementation and a have a smooth transition on 1 April 2015. Good luck! All the above are based on my personal opinions and if you are using a different approach or methodology then the guide may not be relevant for some of the phases.

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