Lenovo Case Study

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ONESOURCE

®

CaseStudy

LENOVO, INC.

AT A GLANCE
Tax Challenges
Streamliningand
integratingtransactiontax
processeswithitsfinance
applications
Automatingprocesseswith
multipledatasources
Maintainingdataformore
than1,500taxcodes
Managingbusiness
processestosuitboth
internationalandspecific
localneeds

Integrating Transaction Tax
Solutions Globally for the
New World
Despitethechallengesofmaintainingcompliance
withcross-bordertaxrequirementsanddetermining
salesandusetax,goodsandservicestaxes(GST),
andvalue-addedtaxes(VAT),it’sstillpossibletotake
controloveryourcompany’staxstrategies.Lenovo,
oneoftheworld’slargestmanufacturersofpersonal
computers,overcamethelogisticandgeographic
challengesofconsolidatingcorporatetaxprocesses
toachieveglobalalignmentofitstaxstrategieswith
businessprocesses.

“We wanted a single set of rules
that the tax department could
control — not IT, and not the
end user — to make sure that
our tax liability was accurate.”
DENNIS CULIN
Director of Business Transformation

Ofcourse,implementingaglobal-taxsolution
whenoperationaldowntimeisn’tanoptiontakes
diligentplanningandaphasedapproachtoexecute
globaldeployments.Thiscasestudyhighlightsthe
integrationofLenovo’scentralizedglobal-taxsolution
withitsbusinesssystems,andexplainshowone
ofthemostinnovativemanufacturersofpersonal
computingtechnologyisnowabletotransformits
globalfinanceoperationsbyleveragingenterprise
transaction-taxmanagementsolutions.
Lenovoistransformingitsfinanceoperationsbyusing
ONESOURCEIndirectTax,aswellaslimitingthetime
itsITdepartmentneedstobeinvolvedinprogramming
whenchangesintaxrulesandratesoccur.

REUTERS/JASON LEE

A GLOBAL BUSINESS WITH
GLOBAL CHALLENGES
WhenLenovoacquiredIBM’spersonalcomputing
divisionin2005,itbecameatrueglobalbusiness,
withstrongconsumerandemergingmarket
leadershipandanefficientsupplychain.Today,the
company’ssalesorderandmanufacturingprocesses
aredistributedaroundtheworld,withprincipal
operationsinMorrisville,NorthCarolina,Beijing,
Paris,andSingapore,andmanufacturingfacilities
inChina,India,Poland,andMexico.Lenovo’snew
globalpresencemeansnewopportunitiesforgrowth,
moreagilemanufacturing,andmorecomplextaxes.
Thechallengewastostreamlineandintegratethe
company’stransactiontaxprocesseswithitsfinance
applicationsonaglobalbasis.

INTEGRATING ONESOURCE INDIRECT TAX
WITH SAP
LenovousesSAPasitsenterpriseresourceplanning
(ERP)system,butrequiredasolutiontoautomate
thedetermination,calculation,andrecordingofU.S.
salesandusetaxandinternationalVAT.Although
SAPcancalculatestandardtaxrates,therewere
otherglobaltaxcompliancechallenges,suchas
constantlychangingtaxratesandrulesacross
multiplecountries.

Results
Abletoapplynewrate
adjustmentsrapidly
Reducedthenumberoftax
filingsandadjustments
tofilings
The Customer
Lenovowasformedwhenthe
China-basedLenovoGroup
acquiredIBM’spersonal
computingdivisionin2005,
becomingapersonalcomputer
giantwithtaxoperationsin
65countries.Lenovoisnowa
globalleaderindeveloping,
manufacturing,andmarketing
high-qualitycomputer
productsandservices.

ONESOURCE CASE STUDY

“WewerelookingtoextendthetaxdeterminationpowerofSAP,”saysDennisCulin, directorofbusinesstransformationatLenovo.“Wewantedtouseasimplesystem, asinglesetofrulesthatthetaxdepartmentcouldcontrolnotITandnottheend usertomakesurethatourtaxliabilitywasaccurate.” LenovoselectedONESOURCEIndirectTax,whichinterfaceswithSAPtocentralize taxdeterminationand...
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