Suncor’s Journey to Intercompany Tax Automation: A Case Study in Innovation
By the beginning of the decade, Suncor found itself grappling with an outdated automated solution for managing intercompany transactions. This predicament was particularly troubling given the company’s legal and regulatory obligations to accurately charge taxes on these transactions. As the complexities of tax codes and jurisdictions grew, employees were forced to rely on cumbersome manual processes, entering data into Excel files before transferring customer line items to another spreadsheet. This inefficient workflow not only consumed valuable time but also led to frequent errors, complicating intracompany fund transfers and vendor payments, ultimately inflating operational costs.
The Need for a Scalable Solution
Recognizing the urgent need for improvement, Suncor set out to develop a flexible, scalable, and efficient Intercompany Tax Automation (ITC) solution. The goal was to harness embedded artificial intelligence (AI) capabilities to manage data responsibly and streamline tax calculations. The ITC solution aimed to eliminate the tedious manual efforts that had plagued the organization, thereby enhancing accuracy and efficiency in tax reporting.
Implementing AI in Business Processes
To bring this vision to life, Suncor turned to SAP Build Process Automation. This innovative platform merges workflow management with robotic process automation (RPA), providing enhanced process visibility, decision management, and advanced AI tools for business document understanding. The overarching goal was to implement AI while adhering to the highest ethical, security, and privacy standards, ensuring compliance with audit requirements. By streamlining procedures, Suncor aimed to significantly reduce the time required for period-end closing.
Leveraging SAP’s Business Technology Platform
Suncor’s strategy heavily relied on SAP’s Business Technology Platform (BTP), a comprehensive suite of tools designed to integrate and connect various business landscapes. This platform would enable Suncor to meet its growing demands and adapt to evolving business requirements. Additionally, teams from SAP’s MaxAttention division collaborated with Suncor’s specialty units to conduct a holistic review of the business automation process. They provided guidance on available solutions based on global best practices and other critical factors.
Collaboration and Expertise
The collaboration between Suncor and SAP was marked by a shared commitment to excellence. “From the initial requirements to the final deployment, the SAP and Suncor teams displayed technical expertise, flexibility, and a willingness to work together to create a solution that perfectly meets Suncor’s business needs,” noted Tatiana Cojocaru, project manager in Suncor’s program management department. This partnership was crucial in navigating the complexities of the project and ensuring its success.
Rapid Development and Deployment
Once the project was initiated, the prototype for the ITC platform was delivered in less than four weeks, with full deployment occurring in under eight weeks, beginning in November 2023. “The SAP MaxAttention team displayed an exceptional level of thoroughness in every aspect of the project,” remarked William Brooks, a tax consultant for Suncor. The team meticulously managed the design, development, deployment, testing, and go-live stages, demonstrating responsiveness to changes even when the project deviated from its original requirements.
Automation at the Click of a Button
The new ITC solution transformed the way Suncor managed its tax processes. Users can now trigger an automation agent with a simple click, allowing a bot to orchestrate tasks and generate all necessary documentation for compliance. This system has effectively eliminated past errors, accurately calculating tax amounts from customer line items and posting journal entries for each company code related to sales and purchase tax. Additionally, it generates PDF invoices for audit compliance, ensuring that Suncor meets its regulatory obligations.
Significant Time and Cost Savings
One of the most remarkable outcomes of the ITC solution is the drastic reduction in processing time. The runtime for tax calculations has plummeted from over eleven hours to under seven minutes. With an unattended bot available to respond to customer inquiries around the clock, Suncor has achieved a staggering 98% improvement in overall execution time. This efficiency has translated into substantial cost savings, with Suncor reducing operational expenses by $1.8 million.
High User Adoption and Strategic Focus
The user experience has also improved significantly, with end users expressing satisfaction with the new solution. The high adoption rate can be attributed to the reduction in tedious manual interventions and data processing. Employees can now redirect their focus toward strategic tasks rather than being bogged down by mundane data validation activities.
Recognition for Innovation
Suncor’s successful implementation of the ITC solution has garnered attention across various industries, leading to its designation as a finalist at the 2024 SAP Innovation Awards. This annual ceremony honors organizations leveraging SAP technologies to drive meaningful change. Suncor’s accomplishments in automation and AI have positioned it as a leader in the field, showcasing the transformative power of technology in enhancing business operations.
Through this journey, Suncor has not only addressed its immediate challenges but has also set a benchmark for innovation in the energy sector, demonstrating the potential of technology to drive efficiency and compliance in complex business environments.