I126 - KPMG & Integra Life Sciences · 2020-02-27 · • Oracle R12 for APAC, NA, and EMEA •...
Transcript of I126 - KPMG & Integra Life Sciences · 2020-02-27 · • Oracle R12 for APAC, NA, and EMEA •...
I126 - KPMG & Integra Life Sciences: Determination and Oracle R12 Deployment in the Medical Industry
3
Vedha ChampatiSenior Manager, KPMG
3
4
Confidential and Proprietary
Vedha ChampatiVedha is a Senior Manager in the Transaction Tax Systems practice at KPMG LLP (KPMG), specializing in tax automation with Oracle and custom solutions.
5
Dan NormanSenior Manager, Integra Life Sciences
5
6
Confidential and Proprietary
Dan NormanDan is a Senior Tax Manager at Integra and is responsible for Indirect Taxes, Domestic Income Tax Compliance, and maintenance of ONESOURCE Determination.
7
Confidential and Proprietary
ObjectivesUpon completion attendees will be able to recognize and analyze the challenges involved in Global implementation of ONESOURCE with Oracle.
8
Confidential and Proprietary
Historical Project Scope and Challenges• Global deployment of ONESOURCE Indirect Tax Determination
• Oracle R12 for APAC, NA, and EMEA• Manufacturing• Supply Chain• Purchasing• Sales (Order to Cash)
• Challenges• Intercompany Cross Border Transactions• Intercompany Transactions • Service and Repair• VAT Reporting/Compliance• Kitting• Travel Sets
9
Confidential and Proprietary
Agenda
Integra Background
Project Overview
Challenges
VAT reporting and Compliance
1010
Integra
of Organic Revenue Growth from
New Product Introductions(Long Term Target)
30%~40%
2019E Guidance
~4,500Employees
>$5.0B Total Enterprise
Value
Reported Revenue Growth 3% - 4% Organic Growth ~5% Adj. EBITDA 24% - 24.5% Adj. EPS Growth 10% - 12%
Sales from Regenerative
Technology Products
International Sales
65%
35%
Orthopedics & Tissue Technologies
Codman Specialty Surgical
10%+
~$1.515 –1.525B*
1111
2018 Business Mix Products Select Markets
Neurosurgery
Precision Tools & Instruments
Wound Reconstruction
ExtremityOrthopedics
Private Label
CSS
Business & Market Composition O
TT
46% Neurosurgery US 3-5% GrowthNeurosurgery Asia 6-8%
19% Specialty Instruments ~3% GrowthGeneral Surgery 2-3%
7% Mid-single Digit Growth
21% Outpatient Wound 10-12% GrowthReconstructive Surgery ~10% Growth
7% Ankle Arthroplasty ~16% GrowthShoulder Market ~7% Growth
RegenerativeProducts
12
Confidential and Proprietary
Project Overview
Global rollout of OITD with Oracle Application R12
52 Legal entities configured in OITD for Purchases and Sales, Gradual roll out since 2012
Countries:
• US• Canada• Germany• Belgium• Austria• UK• Netherlands • France• Italy• Ireland• Switzerland• Australia• New Zealand• China• Japan• Slovakia• Czech Republic
13
Confidential and Proprietary
Recent European Go Live (February 2019)
Countries:
Germany Belgium Austria UK Netherlands France Ireland Switzerland Luxembourg
20 Legal entities configured in OITD for Purchases and Sales
Global rollout of OITD with Oracle Application R12
1414
Confidential and Proprietary
Challenges
Master data
Italy: Hybrid Model was used for Italy to handle unique reporting requirements.
Transfer of inventory from manufacturer to distribution
Travel Kits
Trunk Stock
Ship-to vs Deliver-to
Service and Repair
Triangulation
Sales Rep crossing borders
Using D&A for testing validation
User Training
1515
Confidential and Proprietary
• Strong Dedicated Team‒ KPMG
• Multiple Transactional Tax System Experts• VAT Specialized Knowledge
‒ Integra• Integra Tax Team US• Integra Tax Team Ireland• Integra Oracle Team
‒ Consultants• Testing
‒ Mapping• High Level Mapping• Detailed Flow Mapping
– VAT Treatment at the transactional Level‒ Testing
• 150 separate tests‒ Weekly Meetings‒ Developed a taxability matrix
• Purchases• Sales
Keys to Success
1616
Confidential and Proprietary
Keys to Success -
1717
Confidential and Proprietary
Keys to Success – Detailed flow Mapping of Goods and Invoice for VAT Purposes
1818
Confidential and Proprietary
Keys to Success
• Testing regime
1919
Confidential and Proprietary
Keys to Success
• Weekly Implementation Meeting
2020
Confidential and Proprietary
VAT Reporting and Compliance
Using ONESOURCE reporting for country specific reporting requirements
Utilizing D&A for reconciliation and transaction validation
Formatted data extracts for the compliance team for US and VAT
21
Confidential and Proprietary
Notice• Some or all of the services described herein may not be permissible for KPMG audit clients and
their affiliates or related entities.
• The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.
• The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
• The KPMG name and logo are registered trademarks or trademarks of KPMG International.
• © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Thank you
2
Thomson Reuters Tax & Accounting Corporate Software & Services is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.