Case study: Sumitomo Mitsui Banking Corporation

How we implemented a full tax solution in record time during Sumitomo Mitsui Banking Corporation’s Oracle migration

What’s the story?

Back in 2018, Sumitomo Mitsui Banking Corporation (SMBC) undertook a major project to upgrade its European entities from Oracle 11i to Oracle R12.

As part of this investment in its infrastructure, the bank was acutely aware of the need for an automated tax solution that would ensure accuracy and compliance across multiple national tax regimes.

In particular, SMBC required a solution for VAT in Belgium. Prior to working with us, it was extremely concerned that Oracle’s native functionality would be inadequate when it came to dealing with the country’s complex VAT reporting requirements.

Despite recognising the urgency with which it needed a comprehensive tax tool within its newly-upgraded Oracle set-up, SMBC was worried it did not have enough time to complete an integration during the restricted period (or just a single weekend) during which it moved from 11i to R12.

The project

Our team of tax technologists worked closely with SMBC to establish our Belgium VAT solution within its Oracle ERP. We took advantage of the Oracle seeded localisations around ‘Belgium allocations’ – a fiscal requirement in Belgium. The result was an Oracle configuration that could meet all the bespoke and complex requirements for determining, calculating and reporting VAT in Belgium.

We used our Rapid Install™ tool to provide the initial configuration for Belgium VAT. This included all the logic around Belgian requirements, including the split between goods and services for all sales and purchases, asset and co-contractor purchases and the requirement for all suppliers and customers to record their tax registration numbers.

We configured and fully tested the VAT solution, while our team also spent time with the end users at SMBC to train them on the new automated tool at their disposal and explain how it would determine tax.

The full use of the seeded Oracle tax allocation solution meant that financial reporting requirements could be met.

The use of our eBTax Rapid Install™ tool enabled us to migrate the client’s entire tax solution from the UAT instance (where it had been successfully tested) to production in under an hour; all while guaranteeing 100% accuracy.

What did we achieve?

We were able to meet all SMBC’s requirements, resulting in a successful project that has transformed the way it manages tax through Oracle.

Achievements in this project included:

  • Implementing an automated solution for Belgium VAT within Oracle R12.
  • Meeting the client’s stringent deadline to allow a smooth upgrade from 11i to R12; integrating our tax configuration in just one hour. The client said that without our Rapid Install™ tool it would not have been possible to adhere to this deadline.
  • Removing manual processes – such as choosing tax codes – from the way SMBC’s team manages tax in Oracle, improving efficiency, achieving ultimate accuracy and saving time.

By closely working with the end users within the SMBC team, we gained their confidence and were able to implement a highly-effective solution that is universally popular and trusted.

The end users involved in processing tax transactions now only have to spend a matter of seconds to choose an option that generates the correct tax rate. The Oracle tax engine does the rest by applying tax logic behind the scenes to ensure complete compliance.

About Sumitomo Mitsui Banking Corporation

SMBC is a member of the Sumitomo Mitsui Financial Group. Based in Tokyo, Japan, the company is ranked among the largest 25 banks in the world by assets under management.

The bank has a strong client base with widespread coverage across the Fortune 500, a healthy balance sheet and worldwide operations that ensure it remains extremely popular in both Asia and the US.

Client testimonial

“Innovate Tax responded quickly and promptly to questions and concerns as our implementation progressed.

“They took into consideration our internal processes and designed efficient tax solutions that not only comply with local regulatory requirements, but also help in automated tax calculation and reporting.

“We are very pleased with the service Innovate Tax provided and would recommend them to anyone looking to have an automated tax solution using Oracle eBTax Module.”

Key points

  • Implemented an automated tax determination and reporting solution for Belgium - a crucial market for the client.
  • Supported the client through its upgrade of eBTax solution from Oracle 11i to R12.
  • Met a strict deadline by implementing a comprehensive tax solution within Oracle in just one hour.
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