Case study: Sumitomo Mitsui Banking Corporation

Scenario

While upgrading European entities from Oracle 11i to Oracle R12.1.3, multiple country tax regimes were needed. The main challenge was the requirement to implement VAT for Belgium. The client was acutely aware of the complexity of setting up VAT for the Belgium VAT jurisdiction. They were worried they would not have enough time during the cutover weekend when they upgraded from 11i to R12, to get the required tax setups in place. In addition, they were worried Oracle would not be able to meet the complex VAT reporting requirements in Belgium.

Approach

Innovate Tax worked closely with the client to establish its Belgium VAT requirements. We took full advantage of the Oracle seeded localisations around ‘Belgium Allocations’, a fiscal requirement in Belgium and confirmed for the client that Oracle could meet the complex reporting requirements.

We used our Rapid Install™ tool to provide the initial configuration for Belgium VAT. This included all the logic around the Belgium 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. We spent time with the end-users to train them on the new automated way in which the tax was determined.

“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 complies 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.”

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 while guaranteeing 100% accuracy. The client said that without our Rapid Install™ tool they would not have been able to complete the tax setup in the available project time frame.

What did Innovate Tax achieve with Sumitomo Mitsui Banking Corporation?

We were able to meet the client’s requirements and implement a full solution in the available time frame. By working closely with the end-user we gained their confidence in being able to deliver an effective solution. The automated solution means that users are no longer responsible for choosing the tax codes, they only need to choose the information that leads to the tax rate. The Oracle tax engine does the rest by applying the tax logic behind the scenes. The result is a more efficient solution that enables the client to meet total compliance.

Key points

  • Multinational banking and financial services company
  • Upgrade of eBTax solution from Oracle 11i to R12 for the Japanese bank Sumitomo Mitsui Banking Corporation Europe Limited.
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