Tax Accounting

PLI Business Transformation – Aligning Systems and Processes

SI COPY

30 November 2016

Design Confirmation Workshop

April 2017

© 2017 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be

reproduced, stored in a retrieval system or transmitted in any
form or by any means (electronic, mechanical, photocopying,
recording or otherwise) without the permission of the copyright
owner.
©Petroliam Nasional Berhad (PETRONAS) 2017 1
Safety First: The Safe Way Is The Best Way

Where are We are on Level 27, Integra Tower

we? Meeting Room Urania 2

Presenters Josephine Lim

for the Day

Proceed to the front doors on both sides of the

Emergency
room and follow the instructions of floor safety
Exits
manager

Floor Safety
Managers

©Petroliam Nasional Berhad (PETRONAS) 2017 2

Session Ground Rules

Silent your phones during the sessions

and limit laptop usage to allocated breaks
only

Be punctual at all times

LISTEN to be heard

Speak up so that everyone can hear you

©Petroliam Nasional Berhad (PETRONAS) 2017 3

Objectives of Design Confirmation Workshop (DCW) in
the next 2 weeks

DCW is meant to…

• Design Adoption - Understand the PLI global design by business
functions and how it can be adopted globally

• Identify global gaps from the global solution based on business needs

• Assess the impacts of the gaps identified in terms of people, process,

data, technology and policy

DCW is not…
• DCW is not a training session – the intent is to understand the global
design. System training will be provided closer to deployment dates

• DCW is not a local requirement gathering session – remember that

we are here to confirm global design. Local requirements can be
highlighted but will be discussed separately by region based on the
agreed global design

©Petroliam Nasional Berhad (PETRONAS) 2017 4

Remember why you are here – PLI Global Design

Role Expectations
All Attendees Knowledgeable in respective functions, actively
participate in sessions and empowered to make decisions

GBPO Accountable for overall global design steer and sign off

AGBPO To inherit GBPO accountabilities when deputized

Functional To provide functional expertise/knowledge in assigned

Specialists area to achieve PLI’s global system design

Regional Business To understand and provide feedback on the global design

Representative from a regional perspective and highlight localization
requirements (legal/statutory)

©Petroliam Nasional Berhad (PETRONAS) 2017 5

How to get the most from your DCW session

Focus on our #1 objective - we are working

towards standardizing & unifying PLI businesses
globally

Listen with an open mind - consider changes

to your current way of working for the greater
good of PLI

Conduct constructive discussions - respect

each other’s opinions & keep conversations above
the line

©Petroliam Nasional Berhad (PETRONAS) 2017 6

 3
Integrated Finance Operations Procurement
INT01: DCW Kickoff FIN01: Finance - OPS01: SCM PRO01: SCM
and Global General Ledger & Operations - Plant Procurement -
Enterprise Interco Maintenance & Prod Enterprise
APR Structure AM PM Master Data PM Structure PM
DCW Schedule – Week 1

4
Finance Finance Operations Procurement
FIN01: Finance - FIN08: Controlling OPS02: SCM PRO02 & PRO03:
General Ledger & - CCA/PCA Operations - Plant SCM Procurement -
Interco Work Management Master Data
APR AM PM

5
Integrated Operations Operations Procurement
INT03: Business OPS04: SCM OPS05: SCM PRO04: SCM
Partner (Vendor & Operations - Operations - Procurement -
Customer Master) Production Quality Direct Procurement
APR AM Execution AM Management PM PM

6
Finance Operations Operations Procurement
FIN02: Finance - OPS06: SCM OPS03: SCM PRO05: SCM
Accounts Operations - PP/QM Operations - Prod Procurement -
Receivable Reporting Planning, Indirect
APR AM Scheduling PM Procurement

7
Finance Integrated Operations Procurement
FIN03: Finance - INT06: Finance & DAT03: SCM PRO06: SCM
Accounts Payable SCM Procurement - Operations - Data Procurement -
Invoice Verification Migration Strategy Vendor Evaluation
APR AM PM AM AM

©Petroliam Nasional Berhad (PETRONAS) 2017 7

 10
Commercial Finance Integrated Integrated
COM01: FIN06: Finance - INT07: SCM INT04: SCM Proc -
Commercial - Asset Accounting Procurement - Inventory & W/hse
Enterprise Requisition Mgmt (Raw Mat/ S-
APR Structure PM AM F, F) PM
DCW Schedule – Week 2

11
Commercial Integrated Finance Integrated
COM02: INT02: Commercial FIN04: Finance - INT05: SCM Proc -
Commercial - & Finance - Billing Cash & Banking Inventory & W/hse
Master Data (Spares/Generic/
APR AM PM Pckg) AM

12
Commercial Finance Procurement
COM03: FIN09: Controlling DAT04: SCM
Commercial - Sales - COPC / COPA Procurement - Data
Management &
APR Operations
Migration Strategy
PM

13
Commercial Finance Finance
COM04: FIN05: Finance - FIN07: Finance -
Commercial - Project Planning & Tax
Pricing & Rebate Control (WBS)
APR AM PM

14
Commercial Commercial Finance Finance
DAT01: COM05: FIN10: Finance - DAT02: Finance -
Commercial - Data Commercial & Period End Closing Data Migration
APR Migration Strategy
AM
Operations -
Logistics PM AM
Strategy
PM

©Petroliam Nasional Berhad (PETRONAS) 2017 8

Objectives of this Session:
FIN07 : Finance - Tax

1 Understand Tax accounting design in S4 HANA

©Petroliam Nasional Berhad (PETRONAS) 2017 9

Indicating your attendance

Verify sessions details – for each session, you’ll be provided

with an attendance acknowledgement sheet. Check the session
details

Indicate your attendance – fill in your

2 3
personal details and sign on the sheet

Record any localisation requirements

or global design feedbacj – should
you have any local requirements that
needs to be addressed after
understanding the global design or
feedback on the global design, please
note it down here

©Petroliam Nasional Berhad (PETRONAS) 2017 10

 Business Impact Assessment (BIA)

WHAT IS THE BIA?

The BIA is used to identify key impacted areas (system & business processes)
which will then be used as input for tailored change management interventions
where needed

HOW ARE WE COLLECTING DATA FOR THE BIA?

I. For system changes – II. For business process &

the project team will role changes – input
leverage on the Global from participants on the
Design Template, the changes if applicable via
main outcome of the this BIA Questionnaire
DCWs

HOW YOU CAN CONTRIBUTE IN 10 MINS!

 Help us complete the BIA Questionnaire by clicking on the link sent to you via email Subject:
BIA Questionnaire or scan the QR code above
 It is accessible via mobile and desktop
©Petroliam Nasional Berhad (PETRONAS) 2017 11
Key Design Decision

Manage Tax Accounting Overview

• You can use the SAP System to manage various types of tax according to
the legal requirements of a country or a region.

Manage Manage
Witholding Goods and
Tax Services Tax

• Withholding • GST
Tax maintenance,
processing reporting and
and reporting settlement

©Petroliam Nasional Berhad (PETRONAS) 2017 12

Key Design Decision

Manage Withholding Tax

• WHT is a government requirement for the payer of an item to withhold or
deduct tax from the payment and pay that tax to the government.
• WHT code is maintained in vendor master data.
• The balance sheet tax posting will be made either upon vendor invoice/
vendor payment.
• The WHT account is cleared on a periodic basis to the Tax Authority which
is subsequently paid during next payment run.

©Petroliam Nasional Berhad (PETRONAS) 2017 13

Key Design Decision

Manage Withholding Tax

©Petroliam Nasional Berhad (PETRONAS) 2017 14

Key Design Decision

Manage Withholding Tax (Upon Payment)

• WHT amount will be based on net expense amount.
• Below is the simulated entry for WHT upon payment.
Invoice Posting in SAP – MIRO/FB60
Dr Expense account MYR 1000
Cr Vendor Account MYR 1000

Payment Run in SAP (WHT 10%) – F110/F-53

Dr Vendor account MYR 1000
Cr 15
WHT account MYR 100
Cr Bank account MYR 900

Transfer WHT to Government Vendor – F-51

Dr WHT account MYR 100
Cr Vendor – Tax Authority MYR 100

Payment to Government Vendor – F110

Dr Vendor – Government MYR 100
Cr Bank Account MYR 100

©Petroliam Nasional Berhad (PETRONAS) 2017 15

Key Design Decision

Manage Withholding Tax (Upon Invoice)

• WHT amount will be based on net expense amount.
• Below is the simulated entry for WHT upon invoice.
Invoice Posting in SAP – MIRO/FB60
Dr Expense account MYR 940
Cr Vendor Account MYR 900
Dr VAT GL MYR 60
Cr WHT account MYR 100
Payment Run in SAP (WHT 10%) – F110/F-53
16
Dr Vendor account MYR 900
Cr Bank account MYR 900

Transfer WHT to Government Vendor – F-51

Dr WHT account MYR 100
Cr Vendor – Tax Authority MYR 100

Payment to Government Vendor – F110

Dr Vendor – Government MYR 100
Cr Bank Account MYR 100

©Petroliam Nasional Berhad (PETRONAS) 2017 16

 Key Design Decision

Manage Withholding Tax – Malaysia (Upon Payment)

• Below is the Withholding tax codes to be setup according to Income Tax
Act (ITA) of Malaysia
• This WHT code will be extended to company code MY10, MY20
Country WHT WHT Description WHT % GL Offsetting
Type Code Account Account
MY 1A 1A Sec107A(a,b) Contract Pymt 10%+3% 13 18190000 NA
1B 1B Sec109 Interest 15% 15 18190000 NA
1C 1C Sec109 Royalty 10% 10 18190000 NA
1D 1D Sec109B Special classes income 10% 10 18190000 NA
1E 1E Sec109A Public Entertainers Prof Fee 15% 15 18190000 NA
1F 1F Sec109F Income under Sec4(f)ITA 1967 10% 10 18190000 NA
2A 2A Sec107A(a,b) Contract Pymt 10%+3% 13 18190000 70240300
2B 2B Sec109 Interest 15 15 18190000 70240300
2C 2C Sec109 Royalty 10% 10 18190000 70240300
2D 2D Sec109B Special classes income 10% 10 18190000 70240300
2E 2E Sec109A Public Entertainers Prof Fee 15% 15 18190000 70240300
2F 2F Sec109F Income under Sec4(f)ITA 1967 10% 10 18190000 70240300
99 99 WHT Not Applicable 0% 0 18190000 NA
*18190000 – Withholding Taxes Payable
70240300 - Other Taxes-Withholding Tax
©Petroliam Nasional Berhad (PETRONAS) 2017 17
 Key Design Decision

Manage Withholding Tax – India (upon Payment and Invoice)

• Below are the Withholding tax keys & their description, which will be setup
for India, in accordance to Income Tax Act (ITA) of India.
• These WHT keys will be extended to company code IN10 (India).
Country WHT Description WHT % Threshold GL
Keys Company NonCompany Rs. Account

192B Sec 192B - TDS on Salary NA As per Slab - 18190000

Sec 194C - TDS on Interest other
18190000
194A than "Interest on Securities" 10% 10% 5,000.00
Sec 194B - TDS on Income by way of
18190000
194B Winning from Lotteries 30% 30% 10,000.00
Sec 194C - TDS on Payment to
18190000
194C Contractors 2% 1% 100,000.00
Sec 194H - TDS on Payment of
18190000
IN 194H Commission & Brokerage 5% 5% 5,000.00
Sec 194I - TDS on Rent (Land ,
18190000
194I Building or Furniture) 10% 10% 180,000.00
Sec 194I - TDS on Rent (Plant,
18190000
194I Machinery or Equipment) 2% 2% 180,000.00

18190000
194J Sec 194J - TDS on Professional Fees 10% 10% 30,000.00
Sec 195 - TDS on International 18190000
*18190000
195 – Withholding Taxes Payable10%
Transactions 10% -
70240300 - Other Taxes-Withholding Tax
©Petroliam Nasional Berhad (PETRONAS) 2017 18
 In discussion – not finalised

Key Design Decision

Manage Withholding Tax – China (upon Payment and Invoice)

• Withholding tax codes to be setup according to Income Tax Act (ITA) of
China/HK will be collected during localization session.
• This WHT code collected will be extended to company code CN10, CN20,
CN30
Country WHT WHT Description WHT % GL
Type Code Account
CN 18190000
18190000
18190000
18190000
18190000
18190000
18190000
Country WHT WHT Description WHT % GL
Type Code Account
HK 18190000
18190000
18190000
18190000

*18190000 – GL acc description

©Petroliam Nasional Berhad (PETRONAS) 2017 19
 In discussion – not finalised

Key Design Decision

Manage Withholding Tax

• Withholding tax codes to be setup according to Income Tax Act (ITA) of
Europe will be collected during localization session.

• This WHT code will be extended to company code base on country

• The pending WHT code will be collected during localization session

*18190000 – GL acc description

©Petroliam Nasional Berhad (PETRONAS) 2017 20

 In discussion – not finalised

Key Design Decision

Manage Withholding Tax

• Withholding tax codes to be setup according to Income Tax Act (ITA) of
Europe will be collected during localization session.
• This WHT code will be extended to company code base on country.

Country WHT WHT Description WHT % GL

Type Code Account
US 18190000
18190000
18190000

Country WHT WHT Description WHT % GL

Type Code Account
MX 18190000
18190000
18190000

Country WHT WHT Description WHT % GL

Type Code Account
AR 18190000
18190000
18190000
©Petroliam Nasional Berhad (PETRONAS) 2017 21
Goods and Services Tax

Manage Goods and Services Tax

• GST is a multi-stage consumption tax on goods and services charged on:-

(a) any taxable supply of goods and services;
(b) made in the course or furtherance of any business;
(c) by a taxable person;
(d) in respective country

Maintain Tax Manage Tax Manage GST

Tax Reporting
Master Data Transactions month end

• Company VAT • Tax Procedure • Tax Payable / Tax

Registration no. • Tax Code Surplus Posting
• Fiscal • Tax GL account
Representative VAT
no.
• Vendor VAT
Registration no.
• Customer VAT
Registration No.
• Tax Classification

©Petroliam Nasional Berhad (PETRONAS) 2017 22

Goods and Services Tax

Company VAT Registration No.

• For each legal entity the VAT Registration No. is stored at company code
data.
• This VAT registration no. will be printed in respective invoices/forms.
• Company VAT registration no. is collected during GL working session.

Individual GST
reg. no is stored
at company
code data

©Petroliam Nasional Berhad (PETRONAS) 2017 23

 In discussion – not finalised

Key Design Decision

Company VAT Registration No.

• For each legal entity the VAT Registration No. is stored at company code
data.
Company Code VAT Registration No. Company Code VAT Registration No.

MY10 513081344 DE10 DE812919669

MY20 51359744 ES10 ESB81519498

IN10 Pending India GST new FR10 FR82429424229

ruling
GB10 GB738195601
CN10
PT10 PT501835350
CN20
IT10 IT05082750968
CN30
PL10 PL6761001281
US10
BE10 BE0404608675
MX10

AR10

BR10

©Petroliam Nasional Berhad (PETRONAS) 2017 24

Key Design Decision

Foreign VAT

• Fiscal representative and the foreign VAT no.

FOREIGN VAT
COMPANY COUNTRY SCOPE
NUMBER
Mercedes F1 business: supply of fuel
GB GB117290428 (purchase by UK blender Coryton) and related
services to MB F1 UK company
Triangular transactions with PL Belgium (PL
PL Italy S.p.A. Italy buys from PL Belgium and sells to UE
IT10 BE BE0897.339.674 customers with incoterms FCA or EXW), direct
purchases from supplier based in Belgium and
incoterm EXW
Distribution of our products in Switzerland
CH CHE-113.210.406
(through the fiscal rapresentative)
Triangular transctions with PL Italy (PL Poland
PL Poland Sp. z o.o. buys from PL Italy and sells to UE customers
IT IT00124539990
PL10 with incoterms FCA or EXW), direct shipment
from PL Italy
Selling of goods from Italy , invoiced by PL
PL Belgium Belgium to one of our major customer
IT IT 00153.189.998
BE10 DOOSAN which picks the goods directly from
Italian logistic operator

©Petroliam Nasional Berhad (PETRONAS) 2017 25

Key Design Decision

Vendor VAT Registration No.

• Vendor VAT Registration no. will be migrated as part of data migration
object

©Petroliam Nasional Berhad (PETRONAS) 2017 26

Key Design Decision

Customer VAT Registration No.

• Customer VAT Registration no. will be migrated as part of data migration
object

©Petroliam Nasional Berhad (PETRONAS) 2017 27

Key Design Decision

Customer VAT Invoice Type GT_CUS (China only)

• There are 3 types of customer VAT invoice type within China:
 Ordinary VAT taxpayer – Special VAT invoice
 Small scale taxpayer – normal VAT invoice
 Foreign Payer – normal VAT invoice for export business transactions

©Petroliam Nasional Berhad (PETRONAS) 2017 28

Goods and Services Tax

Manage Goods and Services Tax

Maintain Tax Manage Tax Manage GST

Tax Reporting
Master Data Transactions month end

• Company VAT • Tax Procedure • Tax Payable / Tax

Registration no. • Tax Code Surplus Posting
• Fiscal • Tax GL account
Representative VAT
no.
• Vendor VAT
Registration no.
• Customer VAT
Registration No.
• Tax Classification

©Petroliam Nasional Berhad (PETRONAS) 2017 29

Key Design Decision

VAT Transaction

©Petroliam Nasional Berhad (PETRONAS) 2017 30

Key Design Decision

Foreign VAT Transaction

• During posting for fiscal representative reporting country needs to be
specified.
• Reporting country is required for filing VAT return on fiscal representative

©Petroliam Nasional Berhad (PETRONAS) 2017 31

Key Design Decision

Tax Procedure
• 1 tax procedure will be setup per country in which tax code, tax rates and tax GL
account is assigned.

Tax Procedure Description Company Codes

TAXMY Malaysia Tax Procedure MY10, MY20
TAXIN India Tax Procedure IN10
TAXCN China Tax Procedure CN20, CN30
TAXHK Hong Kong Tax Procedure CN10
TAXES Spain Tax Procedure ES10
TAXPT Portugal Tax Procedure PT10
TAXGB UK Tax Procedure GB10
TAXIT Italy Tax Procedure IT10
TAXB Belgium Tax Procedure BE10
TAXF France Tax Procedure FR10
TAXD Germany Tax Procedure DE10
TAXPL Poland Tax Procedure PL10
TAXTR Turkey Tax Procedure TR10
TAXUS US Tax Procedure US10
TAXMX Mexico Tax Procedure MX10
TAXBRA Brazil Tax Procedure BR10
TAXAR Argentina Tax Procedure AR10

©Petroliam Nasional Berhad (PETRONAS) 2017 32

Key Design Decision

Malaysia Tax Procedure (TAXMY)

• Attached is the output and input tax code with its respective tax rate and tax GL
account to be assigned to.

©Petroliam Nasional Berhad (PETRONAS) 2017 33

Key Design Decision

China Golden Tax Interface

S4 HANA

Golden Tax is the value-added tax invoice control system of the Chinese government.
As per legal requirements, companies registered in China is required to issue VAT
invoices using Golden Tax System (GTS) which issue GT numbers for each VAT invoice.

©Petroliam Nasional Berhad (PETRONAS) 2017 34

 In discussion – not finalised

Key Design Decision

China Tax Procedure (TAXCN)

• China output tax/sales tax and input tax/purchase tax code with its respective tax
rate and tax GL account to be assigned to will be collected during localization session.

• Define GTI Tax Invoice Keys – Maximum total no. of line and amount for each billing
to GTS
Tax Inv Desc Line Item Net Value Limit Local Unit
Key Limit Currency Price
CN01 China TIKey 10K 8 10,000.00 CNY w/o tax

CN02 China TIKey 100K 6 99,999.99 CNY w/o tax

(Shenzhe
n)
CN03 China TIKey 1mil 8 999,999.99 CNY w/o tax
(Shandon
g)
CN04 China TIKey 10mil 8 10,000,000.00 CNY w/o tax

©Petroliam Nasional Berhad (PETRONAS) 2017 35

 In discussion – not finalised

Key Design Decision

Manage Goods and Services Tax (GST) - India

Goods & Service Tax or GST will be levied on goods and services. GST rate will comprise
of the following:

1) SGST - State Goods and Service Tax

2) CGST - Central Goods and Service Tax

3) IGST - Integrated Goods and Service Tax

Currently, the GST Council has fixed 4 bands of GST rates, i.e. 0%, 5%, 12%, 18% and
28%. However, it is not very clear on the exact GST rates applicable on petroleum &
related products. Also surcharges, if any, may be charged. As a result, business needs
to communicate the same to us once these are clarified and finalized by the Government
of India. Accordingly, these will be designed in the SAP system.

©Petroliam Nasional Berhad (PETRONAS) 2017 36

 In discussion – not finalised

Key Design Decision

Europe Tax Procedure

• Attached is the output and input tax code with its respective tax rate and tax GL
account to be assigned to.

• The pending tax code will be collected during localization session

©Petroliam Nasional Berhad (PETRONAS) 2017 37

 Key Design Decision

Italy Split Payment

• In Italy sales/output tax on Public Admin customer invoice is ‘auto offset’ by a
background job at the end of day via a customized program ZFI_SPLIT_PAYMENT

• Sale / output tax is posted to tax code 90 - IVA 22% SPLIT PAYMENT VENDITE DPR
633/72 to a different Output tax GL account C4821003 VAT PAYABLE SPLIT PAYMENT
automatically posted via
Offsetting entry is

background job

©Petroliam Nasional Berhad (PETRONAS) 2017 38

 In discussion – not finalised

Key Design Decision

USA Tax
• In USA, tax authority is different for each area and tax authority decides tax
percentage in that area. Hence the tax percentage applicable on a business transaction
depends upon which area the transaction belongs to (tax to be paid to which tax
authority).
• SAP handles this requirement by using concept of tax jurisdiction code. Each tax
authority is created as a tax jurisdiction code in SAP.
• The jurisdiction code is a key which (together with the tax code) determines the tax
amount and the way in which payment of the total tax amount is divided between
different tax authorities.

• VERTEX will not be used to simplify and automate the complexity of calculating,
collecting, and reporting on sales, consumer use, and retail taxes, as well as VAT, GST,
and other transaction tax types.
• Note: Tax jurisdiction code is maintained in vendor master, customer master, internal
order master, cost center master, profit center master etc.

©Petroliam Nasional Berhad (PETRONAS) 2017 39

 In discussion – not finalised

Key Design Decision

Nota Fiscal
• For every purchase of products or services and material movements it is required that
a Nota Fiscal is printed in Brazil.
• The nota fiscal includes all tax-related information which is required for reporting to
the tax authorities.
• NF-e is the Nota Fiscal that is issued online. The NF-e allows real time reporting of all
transactions to the authority of the state government responsible for taxation and
revenue.

• The note fiscal is used in the following ways:

• Delivery Note
– In Brazil, taxes are levied on the movement of goods – and not on the sale, as is
customary in other countries. For this reason, a nota fiscal, which represents a
legal document, must accompany each delivery of goods.
• Invoice
• In most cases, the nota fiscal also serves as a financial document, meaning
that customers view the nota fiscal as an invoice against which they make
payment. They do not request a separate invoice (called a fatura in
Portuguese
• On occasion, customers request a separate invoice in addition to the nota
fiscal that arrives along with the goods. Vendors then send what is called a
fatura, which can be used to group one or more notas fiscais.
©Petroliam Nasional Berhad (PETRONAS) 2017 40
Key Design Decision

Tax Invoice
• Each country is required to provide sample tax invoice and highlight the
requirement clearly during Commercial DCW/ Account Receivable DCW

©Petroliam Nasional Berhad (PETRONAS) 2017 41

Goods and Services Tax

Manage Goods and Services Tax

Maintain Tax Manage Tax Manage GST

Tax Reporting
Master Data Transactions month end

• Company VAT • Tax Procedure • Tax Payable/ Tax

Registration no. • Tax Code Surplus
• Fiscal • Tax GL account
Representative VAT
no.
• Vendor VAT
Registration no.
• Customer VAT
Registration No.
• Tax Classification

©Petroliam Nasional Berhad (PETRONAS) 2017 42

Key Design Decision

Manage GST Month End

• At month end total output tax debited and input tax credited to derived at
the surplus/under tax
• Transaction “FB41” will be use to perform this activities
• VAT surplus/payable is to be posted to 18202000 –VAT/GST Control
Account

©Petroliam Nasional Berhad (PETRONAS) 2017 43

Key Design Decision

Manage GST Month End

• For tax payable, 18202000 – VAT control account will be cleared to
Government vendor which payment can then be processed.
F-03/FB05 DR VAT control account
CR Vendor – Country Inland Revenue

F110/F-53 DR Vendor – Country Inland Revenue

CR Bank Outgoing Clearing

• For tax surplus, refund will be posted upon bank reconciliation. Thereafter
the business will manually clear the bank incoming clearing against
18202000 - VAT control account
FF67/FF_5 DR Main Bank
CR Bank Incoming Clearing

F-03/FB05 DR Bank Incoming Clearing

CR VAT control account

©Petroliam Nasional Berhad (PETRONAS) 2017 44

Goods and Services Tax

Manage Goods and Services Tax

Maintain Tax Manage Tax Manage GST

Tax Reporting
Master Data Transactions month end

• Company VAT • Tax Procedure • Tax Payable/ Tax

Registration no. • Tax Code Surplus
• Fiscal • Tax GL account
Representative VAT
no.
• Vendor VAT
Registration no.
• Customer VAT
Registration No.
• Tax Classification

©Petroliam Nasional Berhad (PETRONAS) 2017 45

Key Design Decision
Manage WHT Reporting
S_P00_07000134 – Generic Withholding Tax Reporting

©Petroliam Nasional Berhad (PETRONAS) 2017 46

Key Design Decision
Manage GST Reporting
S_ALR_87012357 – Advance Return for Tax on Sale/Purchase

©Petroliam Nasional Berhad (PETRONAS) 2017 47

Key Design Decision

Manage GST Reporting

• PLISB and PBOM registered individually for GST but reported as 1 under
Petronas Group Tax.

• GST data will be downloaded via Qlik View for submission to group tax on
a monthly basis. PET-ICT will upload data in Qlik View and available
business to do checking from N+4 to N+11 day. This process is captured
as requirement. Below reports are used to facilitate GST requirement.
 ZF307A – Sales and Purchase Listing
 ZF220 – GST AP Aging Report
 ZF219 – GST AR Aging Report

• All invoices/credit note/debit notes will be triggered and stored in Open

Text for tax audit purposes. This process is captured as requirement.

• Group tax will eventually compile and submit GST-03 return and audit file
to Inland Revenue on behalf of PLISB and PBOM.

©Petroliam Nasional Berhad (PETRONAS) 2017 48

Key Design Decision
Manage Withholding Tax – India
• WHT Report can be generated using T-Code: J1INMIS. The output of this
report will help business to pull and reconcile WHT data on a monthly basis
to ensure accurate TDS returns.

• As shown in screenshot above, the report shows vendor wise invoice and
payment document numbers for a particular month and the WHT tax
amount deducted in each document number. The report also shows the
WHT keys to identify the nature of deduction and posting date of deduction
as well.

©Petroliam Nasional Berhad (PETRONAS) 2017 49

Key Design Decision

Manage WHT & GST Reporting – GB

WHT and GST return form is filed manually by the business.

The following reports will be used for filing GST return form on quarterly
basis.

VAT Report - GB
• S_ALR_87012357 - Advance Return Tax on Sales and Purchases

©Petroliam Nasional Berhad (PETRONAS) 2017 50

Key Design Decision

EC Sales Reporting– GB

• EC (European community) sales report – This is a list of sales made to EC

countries by customer including their VAT number which need to be
reported to government authority on a monthly basis.

• S_ALR_87012400 - EC sales list.csv file is downloaded from SAP and

uploaded as batch file to Government online system.

• Detail requirement on ES sales listing will be discussed further during

localization session together with commercial project team.

©Petroliam Nasional Berhad (PETRONAS) 2017 51

Key Design Decision

Intrastat Reporting– All EU countries

• Intrastat report – This reports display the movement of goods within EU

countries which need to be reported to government authority on a monthly
basis.

• MEIS – Select MM Receipt and Return

• VE01 – Select SD Dispatches and Return

• ZUPD_VEIAV – Zero Balancing item upload

• VEFU – Additions/Correction to Intrastat items not picked up on report

• VE17 – Create the actual submission reports for imports and exports to be
emailed to Government Customs and Excise.

• Detail requirement on Intrastat reporting will be discussed further during

localization session together with commercial project team.
kedcsd Exp 02Feb kedcsd Imp 02Feb

©Petroliam Nasional Berhad (PETRONAS) 2017 52

Key Design Decision

Manage WTH & GST Reporting – Spain

GST return form is filed manually by the business.

The following report will be used for filing GST return form.

• S_ALR_87100833 –Advance Tax on Sales and Purchases

©Petroliam Nasional Berhad (PETRONAS) 2017 53

Key Design Decision

Manage WTH & GST Reporting – Italy

GST return form is filed manually by the business.

The following reports will be used for filing GST return form.

Detail requirement on below reports will be discussed further during

localization session.

VAT Report - Italy

• Y_SFL_01000022 - PL IT_VAT REGISTER SALES
• Y_SFL_01000023 - PL IT_VAT REGISTER UE SALES
• Y_SFL_01000024 - PL IT_VAT REGISTER PURCHASES
• Y_SFL_01000025 - PL IT_VAT REGISTER PURCHASES UE DEBIT POSITION
• Y_SFL_01000026 - PL IT_VAT REGISTER PURCHASES UE CREDIT
POSITION
• Y_SFL_01000027 - PL IT_VAT REGISTER CORRISPETTIVI
• Y_FLD_54000033 - PL IT_VAT REGISTER PUBLIC ADMIN
• Y_SFL_93000132 - PL IT_VAT BALANCE

©Petroliam Nasional Berhad (PETRONAS) 2017 54

Key Design Decision

Manage WTH & GST Reporting – Italy

Fiscal representative VAT Report – Switzerland, UK

• Y_SFL_54000149 - SWITZERLAND FISCAL RAPRESENTATIVE_VAT
REGISTER SALES
• Y_SFL_54000150 - SWITZERLAND FISCAL RAPRESENTATIVE_VAT
REGISTER PURCHASES
• Y_SFL_54000151 - SWITZERLAND FISCAL RAPRESENTATIVE_VAT
BALANCE
• Y_FLD_54000007 - UK VAT NUMBER_VAT REGISTER SALES
• Y_FLD_54000008 - UK VAT NUMBER_VAT REGISTER PURCHASE
• Y_FLD_54000009 - UK VAT NUMBER_VAT BALANCE

Fiscal representative VAT report for Belgium is currently prepared manually.

Intrastat report will be collected and discussed during localization session

together with commercial project team
©Petroliam Nasional Berhad (PETRONAS) 2017 55
Key Design Decision

Manage WTH & GST Reporting – Poland

GST return form is filed manually by the business. XML GST return file is
being developed currently and business to share the file format and program
is ready.

Currently the following reports will be used for filing GST return form. Detail
requirement on below reports will be discussed further during localization
session.

VAT Report –Poland

• S_ALR_87012385 - Sprawozdawczość -> Komunikaty podatku VAT ->

Rejestr VAT - Polska

• Y_SFL_54000139 - Informacja podsumowująca dla Polski

Fiscal representative VAT Report – Italy

• Y_SFL_54000109 – Rejestr VAT - IT

©Petroliam Nasional Berhad (PETRONAS) 2017 56

Key Design Decision

Manage WTH & GST Reporting – France

GST return form is filed manually by the business. XML GST return file is
being developed currently and business to share the file format and program
is ready.

Detail requirement on VAT report will be discussed further during localization

session.

©Petroliam Nasional Berhad (PETRONAS) 2017 57

Key Design Decision

Manage WTH & GST Reporting – Germany and Austria

GST return form is filed manually by the business.

The following reports will be used for filing GST return form.

Detail requirement on VAT report will be discussed further during localization

session.

• Y_SFL_24000083 –UST VA - RE RFUMSV00

• Y_SFL_24000084 – Zusammenfassende Meldung RE

RFASLM00J1INQEFILE

©Petroliam Nasional Berhad (PETRONAS) 2017 58

Key Design Decision

Manage WTH & GST Reporting – Portugal

GST return form is extracted from SAP in XML format compliance to tax state
legislation via below transaction code.

• FTW1A

• RSAFT_XML

• FTWN

The following reports are used in tax reporting:

• S_ALR_87012386 – Advance Return on Tax on Sales and Purchases

• S_ALR_87012289 – Compact Document Journal

• Y_SFL_54000107

Detail requirement on the above will be discussed further during localization

session.
©Petroliam Nasional Berhad (PETRONAS) 2017 59
Requirement

No. Description Type Raised by Comment

1. Vendor down payment is subject to WHT in Configuration India -

India – Fit Dinesh

2. Multiple WHT rate in India and it is different Configuration India - WHT code
for each of vendor base on special tax rate – Fit Dinesh for
certificate received from local tax authority different
rate need
to be
created
3. WHT tax rate will apply for different Configuration India -
threshold. For example: – Fit Dinesh
- 4% applied below 10k
- 3.8% applied above 10k
4 PO amount is 1000, advance payment 700 Configuration India - WHT Tax
which is subjected to WHT, upon invoice - Fit Dinesh base
receipt, WHT amount should be based on the amount is
remaining balance. editable
during
posting

©Petroliam Nasional Berhad (PETRONAS) 2017 60

Requirement

No. Description Type Raised by Comment

5. GST tax rate in India will be confirmed Configuration India -

once local government make an official Dinesh
announcement. GST in India will be
implemented on 1-July.
6. PAN no. to be maintained in vendor Configuration India -
master, this info will be recorded upon Dinesh
WHT payment to tax authority so that
vendor can claim back the WHT amount.
7. 3 input tax account and 3 output tax account Configuration India - India team
required in India for different states. Dinesh to map the
tax account
to group
COA.
8. US VAT code is different for each of state. Tax Configuration US - Sharon Tax code
jurisdiction used to differentiate the tax rate per
among states jurisdiction
code is to
be
collected
during
localization
session.
©Petroliam Nasional Berhad (PETRONAS) 2017 61
Requirement

No. Description Type Raised by Comment

9. Excise duty and consumption tax is Gap Italy – To be

calculated in ZUTS and there is another Stefano discussed
bespoke program to produce a txt file and Silvio with
send to custom to pay excise duty to commercial
release the shipment. project
team
during
localization
session
10. Italy split payment Gap Italy - Bespoke
Marco program is
required
11. EC (European community) sales report – Sales UK - Thiru Further
made to EC countries discussion
required
12. Intrastat report – Movement of goods within EU UK - Thiru
countries between
commercial
project
team with
business

©Petroliam Nasional Berhad (PETRONAS) 2017 62

Requirement

No. Description Type Raised by Comment

13. Italy VAT Reports: Gap Italy – To be

Y_SFL_01000022 - PL IT_VAT REGISTER SALES Marco discussed
Y_SFL_01000023 - PL IT_VAT REGISTER UE SALES during
Y_SFL_01000024 - PL IT_VAT REGISTER
localization
PURCHASES
Y_SFL_01000025 - PL IT_VAT REGISTER session
PURCHASES UE DEBIT POSITION
Y_SFL_01000026 - PL IT_VAT REGISTER
PURCHASES UE CREDIT POSITION
Y_SFL_01000027 - PL IT_VAT REGISTER
CORRISPETTIVI
Y_FLD_54000033 - PL IT_VAT REGISTER PUBLIC
ADMIN
Y_SFL_93000132 - PL IT_VAT BALANCE
Y_SFL_54000149 - SWITZERLAND FISCAL
RAPRESENTATIVE_VAT REGISTER SALES
Y_SFL_54000150 - SWITZERLAND FISCAL
RAPRESENTATIVE_VAT REGISTER PURCHASES
Y_SFL_54000151 - SWITZERLAND FISCAL
RAPRESENTATIVE_VAT BALANCE
Y_FLD_54000007 - UK VAT NUMBER_VAT
REGISTER SALES
Y_FLD_54000008 - UK VAT NUMBER_VAT
REGISTER PURCHASE
Y_FLD_54000009 - UK VAT NUMBER_VAT BALANCE

©Petroliam Nasional Berhad (PETRONAS) 2017 63

Requirement

No. Description Type Raised by Comment

14. Poland XML VAT return file Gap Poland – To be

Agata discussed
during
localization
session
15. Poland VAT Report: Gap Poland -
Y_SFL_54000139 - Informacja Agata
Y_SFL_54000109 – Rejestr VAT - IT

16. France XML VAT return file Gap France

17. Germany & Austria VAT Report Gap Germany &

Austria -
Y_SFL_24000083 –UST VA - RE
Dietmar
RFUMSV00
Y_SFL_24000084 – Zusammenfassende
Meldung RE RFASLM00J1INQEFILE

©Petroliam Nasional Berhad (PETRONAS) 2017 64

Requirement

No. Description Type Raised by Comment

18. Portugal XML VAT Return file Gap Portugal – To be

Leticia discussed
FTW1A
Fernandes during
RSAFT_XML localization
session
FTWN
19. Portugal VAT report: Gap Portugal –
Y_SFL_54000107 Leticia
Fernandes
20. WHT is absorb by PLI company itself Fit China –
instead of vendor. China would like to BingBao
record the WHT amount to P&L directly
upon invoice even though WHT is based
on payment.
21. China GTS requirement GAP China – Guo
Jie/Bingbao
22 China consumption tax China -
Maggie

Attached discussion points recognized during DCW session

©Petroliam Nasional Berhad (PETRONAS) 2017 65

Appendix

©Petroliam Nasional Berhad (PETRONAS) 2017 66

Business Process Network

FB50

©Petroliam Nasional Berhad (PETRONAS) 2017 67

Business Process Network

FB50

©Petroliam Nasional Berhad (PETRONAS) 2017 68

Business Process Network

©Petroliam Nasional Berhad (PETRONAS) 2017 69