Dallas, Texas — Ryan & Company, America's largest independent provider of state and local tax services, recently announced that it has implemented a use tax automation solution for Baan-Vertex that successfully overcomes the limitations of the standard Baan-Vertex tax interface. The solution addresses the problems of accruing use tax on purchases and divergent use items and updating use tax accruals to the Vertex Tax Register. Ryan & Company successfully installed the Baan-Vertex tax solution at Lufkin Industries, Inc., an internationally known firm that manufactures oilfield equipment for global customers, gear drives for industrial applications, and highway vans, flatbeds, and dump trailers.
The standard Baan-Vertex integration has limited purchasing functionality and lacks goods movement functionality. Standard tax integration facilitates tax calculations on Sales and Services Invoices, however:
- although tax calculations are performed, tax accrual data does not update to the Vertex Tax Register for purchase invoices.
- tax calculations for inventory items occur at time of purchase only, not at time of requisition or use.
- tax decisions are made by purchasing personnel and/or invoice entry personnel and are not controlled by tax professionals.
Enhancing the standard Baan-Vertex integration enabled a unique solution for purchasing expense and inventory items. This solution was achieved without customization to the Baan standard source code. With these enhancements:
- a multi-level hierarchy handles expense item options for quick selection.
- expense item hierarchy structure includes item description and use, requiring no tax decision.
- tax is verified at invoice entry, and applicable use tax is accrued based on the item and how it is used.
- inventory movements are examined and tax is accrued based on the item and how it is used.
- all tax accruals are updated to the Vertex Tax Register and to the appropriate Baan general ledger account for use tax accruals.
- implementation includes reconciliation reports, documentation, and system testing.
Tailoring the solution to each client's purchasing requirements and business processes ensures a delivered solution that maximizes the benefits of the solution. Some of these benefits include:
- tax decisions are made by tax professionals through the configuration of the system, and not by purchasing agents or accounts payable processors.
- tax accruals can be calculated on inventory items when first used in a taxable manner.
- the client receives a flexible solution based on business rules that are unique to them.
- an audit trail and management reporting capability are provided on transactions subject to tax.
- the TAX2000 file includes use tax accruals, facilitating the automatic creation of use tax returns.
- this solution compliments the existing Baan to Vertex functionality and extends the benefit of the Vertex software investment.
Ryan & Company and Lufkin Industries introduced the Baan-Vertex tax automation solution at the recent Baan World Users 2003 Fall Workshop held in Charlotte, North Carolina October 7-10.
Ryan, an award-winning global tax services and software provider, is the largest Firm in the world dedicated exclusively to business taxes. With global headquarters in Dallas, Texas, the Firm provides an integrated suite of federal, state, local, and international tax services on a multijurisdictional basis, including tax recovery, consulting, advocacy, compliance, and technology services. Ryan is a 10-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan’s multidisciplinary team of more than 4,100 professionals and associates serves over 21,000 clients in more than 60 countries, including many of the world’s most prominent Global 5000 companies. More information about Ryan can be found at ryan.com. “Ryan” and “Firm” refer to the global organizational network and may refer to one or more of the member firms of Ryan International, each of which is a separate legal entity.
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- Transaction Tax