Today, whenever tax rates change in a country — as they do often — an ERP analyst or IT professional is urgently summoned to manually create new codes for each new rate. At the same time, these new tax codes reduce the number of two-digit codes available in SAP ERP. It can be a major drain on time and resources, and businesses face severe financial penalties if they fail to comply on time or use out-of-date tax codes to calculate their tax rate.
To help companies meet these challenges, Thomson Reuters recently released a new global integration framework for ONESOURCE Indirect Tax — its determination software that many global enterprises rely on to manage indirect taxes (from initial transactions through monthly tax filing), and consolidate global tax policy in one central location.
Known as “Global Next,” the new integration framework contains code insertions into SAP ERP, integrating the end-to-end indirect tax determination — delivering sales, use, and VAT determination, and reporting directly within SAP ERP. Global Next was built to handle global indirect taxes in support of SAP solutions and aims to significantly simplify the lives of tax and finance professionals and SAP IT experts who work in companies that do business in multiple countries and regions around the world.
The integration framework leverages tax data generated globally, in every aspect of your company’s business. Tax rates that change in each country, state, and local jurisdiction are automatically updated via the monthly tax content updates. With Global Next, no new tax codes need to be added, as existing codes can be reused with new rates.
From Complexity to Simplicity
The benefits of automating indirect tax processes can be drastic. For every $1 billion in transactions, approximately $6 million is wasted in transaction tax costs, and many companies are spending 3% more on IT costs than they need to, 4% more on penalties and interest, 10% more through poor cash management, and 13% in the manual processes and tax-error arena.
By saving time, optimizing resources, and eliminating errors, Global Next allows companies large or small with simple-to-complex transactions to modernize how indirect tax is determined, calculated, and recorded, resulting in millions of dollars saved.
Take Advantage of Efficiencies
Because Global Next reduces changes to SAP systems and IT coding requirements by up to 90% with its built-in global tax content, tax professionals and their IT partners can save hours of valuable time each month, freeing them to focus on more strategic matters.
For example, users can leverage the standard VAT reports in SAP ERP to expedite the reconciliation process. Rates, rules, and tax codes are updated in real time, virtually eliminating the need to make subjective and error-prone tax code selections. The burden on IT departments is reduced for ongoing indirect tax support tasks such as coding and testing.
Implementations and maintenance are also accelerated and performed more efficiently. The Global Next Flexible Field Mapper enables tax professionals to configure relevant data mappings without requiring IT experts to write code during implementations. This capability delivers unprecedented efficiency in deployment, testing, and policy adjustments. It allows for more flexibility and speed whenever business processes change or companies’ tax policies are adjusted.
Ultimately, businesses achieve transparency through a holistic view of the entire indirect tax process. They will also be able to accelerate the time taken to deliver financials to local authorities, saving hours in wasted time and allowing more time for work on other matters.
In short, by delivering support for simple-to-complex global transactions and through its integration with SAP ERP, Global Next transforms how indirect tax is determined by simplifying processes, delivering flexibility, and maximizing resource efficiency.
Integrating a tax determination engine with SAP ERP allows businesses to achieve continual and non-disruptive use of multiple financial applications. Global Next will modernize the compliance process for any global business with a complex supply chain and structure and will work seamlessly with
SAP ERP in over 180 countries around the world.
For more information about how Global Next can help your business, visit http://onesourceindirecttax.com.