Case study: Reed Exhibitions

Scenario

The client organized and ran exhibitions in multiple locations around the world and was registered for tax (VAT, GST or Sales, and Use) in the majority of them. They primarily sold exhibition space and tickets to the events, with each scenario coming under completely different tax treatment. As a result, they had extremely complicated tax requirements and worried that Oracle would not be able to meet their needs.

For example, for an event in France, on one transaction they may have to charge both French and UK VAT, as sales for admission were under the local (French) jurisdiction whereas sales for exhibition space in the event came under UK jurisdiction. The complexity was compounded because the location of the event needed to be a tax determining factor, but there was no Oracle functionality to accommodate this.

Approach

Innovate Tax took the time to understand the client’s requirements, something that the client was not expecting due to the complexities involved. Armed with our knowledge of the capabilities of the tax module we were able to come up with a simple solution for the event location with minimal impact on the standard functionality. We then used the Rapid Install™ tool to install the VAT solution for one Asian and eight European countries.

Our core tax solution was installed and then on top of this framework, we worked to install client specific requirements that incorporated the extensive and complex setup needed to handle the event-based rules. Our standard inventory item solution was enhanced to incorporate the client’s specific taxable categories of Insurance and Administration, which both affected the outcome of the tax. The type of customer was also factored into the tax logic. The number of rules created that were client-specific amounted to 50% of the solution, but at no time were the original Innovate Tax rules removed or changed. Instead, the client-specific rules were neatly and easily added on top of the Innovate Tax standard logic, maintaining the naming and numbering convention for easy maintenance.

While the majority of transactions that were event-based would use the new tax rules, any other type of transaction would still use the standard rules, ensuring that the solution was futureproofed and would work across the entire business, not restricted to events only. The solution was copied to the other instances in minutes compared to the weeks it had taken when it was done manually. The solution is capable of calculating all the tax for multiple regimes based on the location of an event, all fully automated including in the Order Management module with no manual intervention required.

What did Innovate Tax achieve with Reed Exhibitions?

The client was initially surprised at how quickly we were able to understand their extremely complex requirements with the solution we provided after our first meeting was eventually used in production. Our ability to understand both the client’s requirements and how this can be optimally set up in Oracle, gave the client great confidence in our ability to deliver an effective solution. We worked closely with the client to create an extensive tax matrix that was subsequently mapped to the tax rules that we created.

The client now has a fully automated tax solution that correctly determines the tax without user interference for all transactional modules (Payables, Receivables, Purchasing, Projects and Order Management). Because all of the client specific configuration was on top of our standard solution, all of our automated tax rules that were not linked to events also worked. This meant that the client was able to use the Innovate Tax solution for all parts of the business not just those linked to the events.

Key points

  • The world's leading Event Organiser
  • eBTax Rapid Install Solution
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