Henry Company Transforms Tax Determination with ONESOURCE and DMA

Background

Henry Company engaged with DuCharme, McMillen and Associates, Inc. (DMA) to assist with the integration of their JD Edwards environment to the ONESOURCE Indirect Tax Determination tax engine. Henry Company is a leading developer of Building Envelope Systems® which integrate air/vapor barrier, roofing, and waterproofing systems. They also offer a variety of products including roof coatings, cements, and driveway maintenance systems. Another major aspect of their business is selling building materials to resellers in the majority of the United States and Canada.

Understanding the challenges

Historically, the sales tax determination process was dependent on rates that were updated in a reactive and manual effort, as opposed to proactive manner. Some of the challenges Henry Company faced with its original processes were:

• Lack of exemption certificate process (although ~90% of customers are exempt), leading to compliance issues for limited use exemptions and expiring certificates
• Issues with the monthly manual compliance process resulted in tax resources spending a significant amount of time compiling transaction information on a regular basis
• Identifying and updating jurisdictional rates within the standard JD Edwards tables
• Transaction detail report generation to support audits

Choosing DMA and ONESOURCE

The engagement consisted of DMA implementing their JD Edwards EnterpriseOne Tax Connector for ONESOURCE Indirect Tax, verified by Thomson Reuters.

Achieving results

Based on extensive requirement and design discussions, as well as the inherent understanding of taxation and technical functionality, DMA and Henry Company built a robust solution including the following key areas:

• Real time billing and consistent correct tax determination
• Exemption management being taken out of JDE and maintained within ONESOURCE
• Job-based exemptions functionality
• New system of record and report functionality to streamline and support the audit process
• Automate jurisdictional rate and content updates applications

Conclusion

After the solution design was complete, the Henry Company team identified additional data field requirements to facilitate detailed reporting and troubleshooting. DMA’s flexibility allowed these enhancements and updated code set to be deployed within a week of go live.

This nimble approach ensured that the Henry Company team received the functionality from the solution desired and could consider the overall project a success. This change, in addition to the overall design and deployment, has provided the Henry Company with enhanced functionality, streamlined processes, and additional time savings for value-added activities.

About DuCharme, McMillen & Associates, Inc.

DMA, a proudly employee-owned company, has been partnering with many of North America’s largest companies since 1972 to solve their corporate tax challenges. Focusing on six key areas of corporate taxation – property tax, sales/use and commodity tax, state income and franchise tax, tax technology, crown royalties, and unclaimed property – DMA professionals assist companies with minimizing their taxes, enhancing the efficiency of their tax administration through industry-leading technology solutions, and managing their tax compliance obligations.

Learn more about DMA