E-Invoicing Study - Gap Assessment for E-Invoicing Implementation

E-Invoicing Study - Gap Assessment for E-Invoicing Implementation

Before E-Invoicing is going to implement in Malaysia in 2024, the organization needs to perform a gap assessment to the current invoicing workflow to determine any procedure changes to accommodate with the E-Invoicing implementation initiative.

Let's look at six areas to address the gap between current process and E-Invoicing process:

1. Assessment on ERP, Accounting, Cloud and In-house system: The number of invoicing systems used in the organization. This is to assess the impact of the future direction on whether it shall consolidate into single system for better E-Invoicing operation or remain decentralized to assess the readiness for E-Invoicing integration from different vendors.
2. Assessment of the current invoice authorization workflow: This is to assess the current invoice issuing authority so that proper digital signature can be assigned to the right personnel. This is applicable as to the organization using multi-systems and with multi-level authorization to issue and approval invoice. Once the cleared invoice is returned, the organization will consider whether it is still necessary to send PDF invoice to the recipient and archiving options for invoices.
3. Assessment of the Internet connection: This is to assess whether invoice generation process needs to be centralized or still decentralized as not all areas will get a strong internet connection. The E-Invoicing validation may post a challenge if the connection with the tax authorization is lagging, slow or disconnected.
4. Another assessment in the cybersecurity and firewall: This is to assess the organization firewall can stop cyber-attack from the hackers as to E-Invoices are sent for validation and returned cleared E-invoices to the organization.
5. Assessment of customers and vendors data availability: As E-Invoicing will require the master data from the customer such BRN, TIN, SST, MyKad and Passport number. This assessment is to classify data availability of the customers to fit into the organization invoicing generation system. Similarly, the same will apply to the vendors.
6. Assessment on budget to conduct workshop and preparation for E-Invoicing implementation: Vendor selection to setup project team and staff training to kick-start E-invoicing implementation.