In March, our team was thrilled and humbled to participate at Ariba Live in Las Vegas. We were honored to not only sponsor the event but also appear on the main stage with Dinesh Shahane, CTO for SAP Ariba.
About a year ago, SAP Ariba selected Thomson Reuters to jointly develop a solution by utilizing their open platform and leveraging their expanding ecosystem. SAP Ariba is experiencing significant growth and is committed to continuing the development of their solutions to meet the vital needs of their customers. We are excited to join them on this journey.
Now, I do not think our partnership with SAP Ariba is capable of making tax awesome for Ariba users. But I do think we can make procurement EVEN MORE awesome by making tax simple!
How do we do that?
We know that tax can be a big issue. Every transaction – big or small – has a tax event. The government holds both the buyer and seller responsible for getting it right and let’s be honest – getting tax right is not easy. In fact, it is complex. And getting it wrong can be expensive.
Rates around the world are changing constantly. In the US alone, there are over 15,000 different tax jurisdictions and just last year over 5,000 tax rates and rules changes. This complexity increases exponentially as you expand your business globally.
Brazil, widely regarded as one of the most challenging tax regimes in the world, is notorious for making tax policy changes as often as daily. Or India, who in the next month is expected to pass legislation bringing in an entirely new tax regime on July 1, 2017 – leaving companies just under four months to get prepared.
Even in cases where the transaction is exempt from tax you still have the burden to prove it. Using rate files or back-end ERP systems that are not close enough to the buying decision are not capable of keeping up. This leads to overpayments effecting your cash position, ability to grow your bottom line, or under payments likely leading to material penalties and interest. This is on top of wasted time going back and forth with suppliers where any change to the invoice will likely create a tax event.
Bottom line, it is your legal obligation to get it right. For most procurement departments, this is a manual, complex and difficult task as you maintain your tax data manually. This opens you up to significant risk and errors, takes your staff away from value-added work and is not a scalable operation as your business grows.
Through the co-developed integration between Thomson Reuters ONESOURCE and SAP Ariba, this problem is a thing of the past. Thomson Reuters ONESOURCE handles the tax rates and rules and these are automatically updated within SAP Ariba – so you get it right, the first time, every time.
Through this innovative integration, you ensure accuracy and eliminate discrepancies of tax data for purchase orders and invoices—reducing errors and saving time and money – and giving you back the resources to focus on the things that matter most to your business.