ONESOURCE® INDIRECT TAx
onesource indirect tax ®
Case Study
lexmark
SPOTLIGHT ON LEXMARK
How Lexmark transformed its global financial operations with SAP and a centralized indirect tax engine OVERVIEW Lexmark International, Inc., a primary developer and supplier of printing, imaging, and software solutions, wanted to move away from its legacy ERP system to SAP, to centralize and outsource its tax process. Important factors in the decision were reducing multiple instances to one global instance and evaluating whether Lexmark should use the SAP internal tax calculation or an external tax engine. Following extensive research, the company decided on the external solutions of ONESOURCE Indirect Tax and ONESOURCE Property Tax. Today, the company has implemented the solutions in over 100 countries using ONESOURCE Integration for SAP, and uses a single, centralized system for taxes, with greater accuracy and flexibility.
From 2009 to 2011, Lexmark transformed its operations with SAP, first in EMEA, and later in Latin America and Asia Pacific
•
• Simplified tax code maintenance in SAP
The company uses the following ONESOURCE products:
• Greater flexibility for complex tax scenarios, such as allowing greater control of custom business logic with trans editors
–– ONESOURCE Indirect Tax Determination & Reporting
• An automated, centralized system for taxes
–– ONESOURCE Indirect Tax Integration for SAP
RESULTS
• Needed to centralize and outsource the tax system globally
• User-friendly configuration enables tax exemptions and product mapping to be managed without assistance from IT
• Heavy reliance on IT to manage tax exemptions and product mapping • No way to accumulate and track property tax data, or bill customers • Difficulties in keeping tax content up to date
• Accurate and up-to-date tax content
• Minimal control over product mapping and exemptions
• Efficient management of sales and use tax accrual, with ability to apply different rules for multiple states easier than other systems
• Managing the growing international business with assets in multiple locations
Snapshot of Lexmark’s ONESOURCE Indirect Tax solution: •
CHALLENGES
• Keeping track of tax rules and filings manually was time consuming and inefficient
Lexmark was formed in 1991 when IBM divested its printer and printer supply operations. The company reported $3.8 billion in revenue in 2012, with approximately 55 percent of that revenue coming from international sales. Its products are sold in more than 170 countries in North and South America, Europe, the Middle East, Africa, Asia, the Pacific Rim, and Caribbean.
• Reduced compliance costs through outsourcing tax rules maintenance • Better management of cross-border transactions for international operations within EMEA, Latin America, and AP
–– ONESOURCE Indirect Tax Sales & Use Tax Compliance –– ONESOURCE Property Tax
onesource indirect tax - case study
“We selected ONESOURCE Indirect Tax to integrate one centralized tax engine for the majority of our countries in one place. This also enabled us to increase accuracy by outsourcing our tax content.” Alexis Aimard SAP Center of Excellence (COE) Tax Lead, Lexmark
About Thomson Reuters and ONESOURCE Indirect Tax ONESOURCE Indirect Tax is part of the Tax & Accounting business of Thomson Reuters, with solutions designed to help companies effectively and efficiently comply with the growing complexity of indirect tax requirements around the world, including sales and use tax, VAT, GST, and industry- and countryspecific taxes. ONESOURCE Indirect Tax offers end-toend global software solutions and consulting services to streamline tax planning, indirect tax determination, calculation, and reporting processes, and local tax compliance for small- to medium-sized businesses and Global 2000 multinational corporations.
Interested in finding out how ONESOURCE Indirect Tax can help you?
Contact Us at:
1.888.885.0206 onesourceindirecttax.com
© 2013 Thomson Reuters/ONESOURCE. All Rights Reserved. Lexmark_CS_072013
Case Study
lexmark
SPOTLIGHT ON LEXMARK
How Lexmark transformed its global financial operations with SAP and a centralized indirect tax engine OVERVIEW Lexmark International, Inc., a primary developer and supplier of printing, imaging, and software solutions, wanted to move away from its legacy ERP system to SAP, to centralize and outsource its tax process. Important factors in the decision were reducing multiple instances to one global instance and evaluating whether Lexmark should use the SAP internal tax calculation or an external tax engine. Following extensive research, the company decided on the external solutions of ONESOURCE Indirect Tax and ONESOURCE Property Tax. Today, the company has implemented the solutions in over 100 countries using ONESOURCE Integration for SAP, and uses a single, centralized system for taxes, with greater accuracy and flexibility.
From 2009 to 2011, Lexmark transformed its operations with SAP, first in EMEA, and later in Latin America and Asia Pacific
•
• Simplified tax code maintenance in SAP
The company uses the following ONESOURCE products:
• Greater flexibility for complex tax scenarios, such as allowing greater control of custom business logic with trans editors
–– ONESOURCE Indirect Tax Determination & Reporting
• An automated, centralized system for taxes
–– ONESOURCE Indirect Tax Integration for SAP
RESULTS
• Needed to centralize and outsource the tax system globally
• User-friendly configuration enables tax exemptions and product mapping to be managed without assistance from IT
• Heavy reliance on IT to manage tax exemptions and product mapping • No way to accumulate and track property tax data, or bill customers • Difficulties in keeping tax content up to date
• Accurate and up-to-date tax content
• Minimal control over product mapping and exemptions
• Efficient management of sales and use tax accrual, with ability to apply different rules for multiple states easier than other systems
• Managing the growing international business with assets in multiple locations
Snapshot of Lexmark’s ONESOURCE Indirect Tax solution: •
CHALLENGES
• Keeping track of tax rules and filings manually was time consuming and inefficient
Lexmark was formed in 1991 when IBM divested its printer and printer supply operations. The company reported $3.8 billion in revenue in 2012, with approximately 55 percent of that revenue coming from international sales. Its products are sold in more than 170 countries in North and South America, Europe, the Middle East, Africa, Asia, the Pacific Rim, and Caribbean.
• Reduced compliance costs through outsourcing tax rules maintenance • Better management of cross-border transactions for international operations within EMEA, Latin America, and AP
–– ONESOURCE Indirect Tax Sales & Use Tax Compliance –– ONESOURCE Property Tax
onesource indirect tax - case study
“We selected ONESOURCE Indirect Tax to integrate one centralized tax engine for the majority of our countries in one place. This also enabled us to increase accuracy by outsourcing our tax content.” Alexis Aimard SAP Center of Excellence (COE) Tax Lead, Lexmark
About Thomson Reuters and ONESOURCE Indirect Tax ONESOURCE Indirect Tax is part of the Tax & Accounting business of Thomson Reuters, with solutions designed to help companies effectively and efficiently comply with the growing complexity of indirect tax requirements around the world, including sales and use tax, VAT, GST, and industry- and countryspecific taxes. ONESOURCE Indirect Tax offers end-toend global software solutions and consulting services to streamline tax planning, indirect tax determination, calculation, and reporting processes, and local tax compliance for small- to medium-sized businesses and Global 2000 multinational corporations.
Interested in finding out how ONESOURCE Indirect Tax can help you?
Contact Us at:
1.888.885.0206 onesourceindirecttax.com
© 2013 Thomson Reuters/ONESOURCE. All Rights Reserved. Lexmark_CS_072013
