Thomson Reuters — ONESOURCE Indirect Tax, Sales & Use Managed Services
From the August 2011 Review of Sales & Use Tax Systems
Best Fit: Mid-sized and larger enterprises with significant sales tax liability exposure across a large number of jurisdictions who want to automate rate management and outsource compliance functions.
Through its ONESOURCE brand, Thomson Reuters offers a collection of corporate accounting and tax compliance solutions and services, including ONESOURCE Indirect Tax. Through the managed services method of deployment, businesses are able to outsource all processes involved with sales and use tax compliance, as well as Canadian GST, including determination of rates, calculation, tracking, reporting and remittance of liabilities. With the acquisition and integration of Sabrix, the system houses a web-based tax engine that integrates with enterprise resource planning (ERP) applications to accomplish a centralized, end-to-end, real-time indirect tax management process.
Basic System Functions:
Since it is designed as an automated outsourced service, most day-to-day use of the program is focused on managerial supervision, reporting and review/approval of compliance forms and payments. After initial implementation of the system, which is guided by support and tax staff from Thomson Reuters with detailed integration and mapping of accounts, ONESOURCE offers a web-based interface that enables in-office or remote access and allows its users to manage reports and information. These functions and additional customizable tools are accessible via a personalized dashboard that enables drilldown to transaction-level and jurisdictional details.
The processing functions, such as rate lookup, calculation and assignment, are performed in real-time by the program as transactions or estimates are created in the business’ ERP. The program is designed for use by one business entity with any number of locations or divisions, as long as they are managed on the same accounting and sales platform.
ONESOURCE Indirect Tax supports all state, local and district jurisdictions in the United States and Canada (more than 13,000), and its tax engine includes address validation and sales evaluation to ensure compliance when transactions include items that may be exempt or taxed differently, or during jurisdictional sales tax holidays. The system can handle simple to complex calculations, including origin to destination states, bundled products, maximum taxes and local tax caps. It also provides management of exemption certificates.
All rules and rates are maintained by the tax law, policy, research and audit staff of Thomson Reuters, which means that the system is always up-to-date with the latest law changes, and historical rates are accessible when necessary, with no maintenance of rate tables by the business.
The system automatically tracks liabilities by jurisdiction and then, after review and approval of forms and liabilities, the consulting service component of ONESOURCE Indirect Tax ensures that all compliance reporting and payments, including zero sum reporting, are handled by the staff at Thomson Reuters. If desired, businesses can also produce fileable print forms for any jurisdiction.
Integration with the core sales, e-commerce and financial management systems used by a business is key to the automation capabilities offered by ONESOURCE Indirect Tax. This integration ensures not only that appropriate tax rates, exemptions and rules are automatically determined and applied to transactions, but also that corresponding data is posted to the general ledger. The program can be integrated into all commercial accounting applications and also offers integration with the other tax solutions available from Thomson Reuters ONESOURCE.
The system offers exceptional reporting features, including tax summaries that can be filtered by periods, jurisdictions, rules and other details, with drilldown functions allowing users to quickly move into detailed transactional levels. Reports can be imported from or exported to virtually all traditional business formats such as Excel, XML, Word and PDF.
Implementation of the program is guided by professionals at Thomson Reuters, ensuring accurate mapping of data and accounts. And the system is designed as a managed service, so most user-level functions are focused on approvals, review and reporting functions, which are accessed via the system dashboard that includes a Help utility and other assistance options. The online support center includes user manuals, FAQs, tutorials, implementation documentation, how-tos and links to tax resources, as well as options for additional training. Live technical support is included.
Executive Summary & Pricing
ONESOURCE Indirect Tax, Sales & Use Managed Services is designed for small to mid-sized and larger enterprises with significant sales tax liability exposure across a large number of jurisdictions. By integrating with the business’ accounting systems to automate lookup and application of appropriate taxes and rules, the system provides greater accuracy than manual application. Likewise, the outsourcing of compliance functions, including filing and payment to all jurisdictions, reduces tedious and penalty prone processes for the business. System pricing depends on annual transaction volume, number of returns per month and number of legal entities, and generally starts around $10,000. ONESOURCE Indirect Tax also offers a Managed Services Tax Pack where clients get tax determination, compliance and returns, and expert consulting services all for one bundled price.
2011 Overall Rating: