Company Profile

Lenovo was formed when the China-based Lenovo Group was acquired by IBM's personal computing division in 2005. Lenovo is now a global leader in developing , manufacturing and marketing high-quality computer products and services.

Business Challenges

With the acquisition by IBM, Lenovo became a true global business with new opportunities for growth, more agile manufacturing and more complex taxes. The challenge was to streamline and integrate the company's transaction tax process with its finance applications on a global basis.
Other challenges include:

• Automating processes with multiple data sources
• Maintaining data for more than 1,500 tax codes
• Managing business processes to suit both international and specific local needs

Solution Utilized

Lenovo selected ONESOURCE Indirect Tax, which interfaces with their SAP enterprise resource planning (ERP) system to centralize tax determination and provide a single compliance database for U.S. and international transaction taxes. Lenovo's transactional and master data is always interfaced from SAP to ONESOURCE Indirect Tax, which means that tax decisions are made by ONESOURCE Indirect tax but the master data and related mapping tables remain within the ERP system.

Benefits Realized

• Limit IT department's time involved in programming when changes in tax rules and rates occur
• Lenovo was able to apply new rate adjustments rapidly
• Reduced the number of tax filings and adjustments to filings
• Configured ONESOURCE Indirect Tax solution so their transactional tax processes are extremely well defined. Going forward, deploying the solution to the rest of the countries will be much easier.