Our Products > Tax Compliance Manager Tool (TCM)
Quite simply, TCM is a game changer for the Indirect Tax world. The dashboard of the TCM module focuses on data in real-time, not on stagnant historical data already posted to the GL allowing the tax team to become a pro-active not re-active force in the business.
The additional analytical forms allow for a deep and detailed dive into the data entered to quickly identify potential issues.
TCM ultimately promises to enable a tax department to make a bigger strategic contribution to the business by ensuring it is less encumbered by the mundane tasks of data manipulation on historical data.
Governments globally are taking advantage of the digital age and using innovation in technology to make their tax systems more efficient. By tapping into non-traditional data sources they not only reduce the time it takes but also the amount of data they can process and ultimately audit. Many countries now demand extracts such as the SAF-T or Malaysian GAF report to pull almost the entire transactional activities of a company into their systems for pre-defined examination.
As a result, it is becoming far harder to make a mistake and not get noticed. Tax compliance is becoming ever more important but the traditional tools and processes used by most company tax departments are simply not good enough to keep up with these new demands.
Our ‘Tax Compliance Manager Tool’ (TCM for short) is designed to provide the ability to achieve total compliance. TCM will analyse your data in real time so that within five seconds of a transaction, customer or supplier being entered, if there is a potential tax issue, it is flagged and made visible to the tax department.
We are effectively finding the needles in the haystack for you. If TCM cannot find the issue, no other tool will. If you compare the other compliance tools on the market almost all are based on historic GL data where the period has already been closed off and posted transactions already paid. TCM will identify a potential issue, immediately show it in our dashboard and allow the tax department to react and even engage with the relevant parties to resolve the issue.
This means users who unknowingly make mistakes are now informed, make the correction and are offered training if required. Erroneous transactions can be identified before they have been paid, accounted or even before they have been validated. For one of our clients using our solution, their first month had more than 450 tax related issues created by either source or user error. The correct processes and training were put in place and by the third month, fewer than 15 issues were reported! Their previous legacy solution would have failed to recognise more than 90% of issues identified by our solution.
TCM is a tool for the tax team. Built using the Oracle database there are no additional software or hardware licenses to pay for and because it is Oracle it is fully integrated. Adopting the Single Sign On (SSO) approach for seamless access with drill down functionality means that at a click the required forms open up to display the raw data. We recognise that most tax departments do not spend every day logged into Oracle. Many tax users have told us they rarely venture into Oracle other than to run reports. TCM makes things easy for the tax team because everything is in one place. It provides a simple and easy to navigate interface with all the information just a click away. We even allow all the Oracle seeded (Oracle provided) reports to be run from our application.
The most important part of TCM is the identification of tax related errors in real time. Each time the refresh button is clicked TCM will, by default, check all the transactions for the current month and with our full security feature linked to Oracle MOAC (Multi-Org Access Control), only those Operating Units you are allowed to see are displayed.
As a result, the tax department can quickly and easily investigate problematic transactions, drill down in Oracle to the transaction itself and identify the user making the mistakes. It would even be possible to then contact that user so they can immediately rectify the issue before the transaction has even been validated.
This really is a game changer. It brings compliance to the forefront of the tax solution design and gives the power to the tax department to monitor, in real time, the transactions being entered. The potential efficiency savings are immense and the ability to dramatically reduce risk linked to Indirect Tax non-compliance is now possible.
Source data is never going to be 100% correct all the time. People make mistakes or forget to do certain tasks. The wrong US address could result in the wrong tax rate being charged or none at all. An EU customer with no VAT registration details could render you non-compliant if you have charged intra EU zero rated tax. TCM provides extensive source data checks focusing on the areas that impact Indirect Tax.
If a supplier has not been correctly set up for tax, the tax department is immediately notified on the TCM dashboard. A simple download of the problematic supplier’s direct to an Excel spreadsheet can be forwarded to the supplier maintenance team. Real time, immediate visibility of the data is important for Indirect Tax determination. Whether it is Suppliers, Customers, Inventory Items, Purchasing Categories or any other source of data that can be used by the tax engine, TCM will be monitoring it. So while users will always make mistakes with source data, you can now monitor it and get it corrected immediately.
You have just discovered by using one of the multiple analytical views built into TCM that a user has been choosing the wrong tax override and the amount of tax recovered is too low. This is not a source or transactional issue because the user has acted in the permitted boundaries of the solution. Utilising TCM to view the data without focusing on any specific issue means that you, the tax department, can use your time constructively to look at how to get your ‘tax dollars’ back.
You can easily extract all transactions, from any user, using any tax override across any Operating Unit across any time period. Our analytical views allow you to filter the data so it is specific to what you need to take immediate action. Finding all the wrong overrides from a user becomes child’s play – a task that takes five minutes and not five days.
Have you ever had the wrong tax rate determined and had to spend hours going through the tax rules to find out what is wrong? Our award winning solution allows you to enter a transaction number that will display all the tax rules activated and used, saving you hours of investigatory time. Diagnostics provide extra information where you need it allowing you to resolve issues quickly and to get on with your job.