Title

Support for Vendor-Related Entries in Malaysian E-Invoicing System for D365 F&O

Description

Background

Currently, the Malaysian e-invoicing implementation in Dynamics 365 Finance and Operations provides limited functionality for linking invoices to their source documents. As confirmed by Microsoft Support, the system does not support linking e-invoices to employee or vendor-related entries.

Requested Enhancement

We request Microsoft to extend the Malaysian e-invoicing globalization features in D365 F&O to include:

1. Full traceability between e-invoices and vendor-related transactions
2. Support for linking vendor entries to e-invoices generated in the system
3. Comprehensive audit trail functionality for vendor transactions in the e-invoicing workflow

Business Impact

This enhancement would:

• Improve compliance with Malaysian tax regulations
• Streamline audit processes for finance teams
• Reduce manual reconciliation work
• Enhance reporting capabilities for vendor-related transactions

Urgency

As Malaysian e-invoicing requirements continue to evolve, this functionality is becoming increasingly critical for businesses operating in the region.

Description

Background

Currently, the Malaysian E-Invoicing implementation in Dynamics 365 F&O only supports customer invoice journals, with no standard functionality to submit other types of General Journals as E-Invoices to the Malaysian Tax Authority. This represents a significant gap affecting many businesses across various industries.

Requested Enhancement

We request Microsoft to develop comprehensive functionality that supports:

1. E-Invoice generation and submission for ALL types of General Journals in D365 F&O
2. Support for journals originating from various sources, including but not limited to:

• External systems (POS, banking, third-party applications)
• Manually entered journals
• Recurring journals
• Allocation journals

1. Proper mapping of all journal transaction data to meet Malaysian tax authority requirements
2. Complete validation and error handling for all journal types

Business Impact

This enhancement is critical because:

• The current limitation only supporting customer invoice journals is insufficient for comprehensive compliance
• Businesses must report various types of transactions to Malaysian tax authorities, not just customer invoices
• Without this functionality, organizations face costly custom development or risk non-compliance
• Manual processing of excluded journal types increases error risk and operational costs
• Many businesses interface with external systems and rely on various journal types for their operations

Urgency

This is a significant issue affecting numerous businesses operating in Malaysia. As e-invoicing requirements become mandatory, the absence of support for all journal types creates a substantial compliance risk and operational burden for companies across all sectors.

Title: CRITICAL: Support Intermediary Concept for Malaysian e-Invoicing - Current Limitation Defeats Globalization Studio Purpose

Severity: High - Major Business Impact

Description: The current requirement for each legal entity to maintain separate Client ID, Client Secret, and Digital Certificate for Malaysian e-Invoicing integration directly contradicts the purpose of Globalization Studio and creates unsustainable costs for multi-entity organizations.

Critical Business Impact:

• Cost Impact: With digital certificates costing RM1,500 per year per entity, organizations with 20-50 entities face annual costs of RM30,000 - RM75,000 just for certificates
• Defeats Globalization Studio Purpose: Globalization Studio is designed to centralize and streamline compliance processes, but this limitation forces decentralization
• Administrative Burden: Managing 20-50 separate certificates, renewals, and credentials creates unnecessary complexity
• Competitive Disadvantage: Other ERP systems and the Malaysian e-invoicing system itself support intermediary concepts

Current Limitation:

• Forces each legal entity to acquire separate digital certificates (RM1,500/year each)
• No support for intermediary/shared service center model
• Contradicts the centralization benefits of Globalization Studio
• Creates unsustainable costs for multi-entity organizations

Proposed Solution: Urgently enhance Malaysian e-Invoicing integration to support:

1. Intermediary entity configuration allowing one set of credentials for multiple legal entities
2. Alignment with Malaysian LHDN's support for intermediary submissions
3. Leveraging Globalization Studio's centralization capabilities
4. Single digital certificate usage across multiple legal entities

Financial Impact: For an organization with 30 legal entities:

• Current approach: RM45,000/year in certificate costs alone
• With intermediary support: RM1,500/year
• Potential savings: RM43,500/year

Risk of Not Implementing:

• Organizations may seek alternative ERP solutions that support intermediary concepts
• Defeats the value proposition of Dynamics 365's Globalization Studio
• Creates barrier to adoption for larger organizations
• Inconsistent with Microsoft's cloud-first, centralization strategy

Regulatory Alignment: The Malaysian LHDN (tax authority) already supports and recognizes the intermediary concept for e-invoicing. This enhancement would align D365 with existing regulatory frameworks.