Utilizing ONESOURCE and Alteryx to optimize the

global tax provision process

Johnson & Johnson and KPMG

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Confidential and Proprietary

Agenda

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Introductions

- Speakers & Objectives

Alteryx Overview

Case Study: Alteryx automation for OTP

Understanding your company’s Alteryx roll-out strategy

- Governance and Tax alignment with the organization

- Building a business case for Alteryx in Tax

Q&A and Wrap-up

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Introductions

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Donna OakesSenior Tax Manager, Tax Technology Johnson & JohnsonProfessional and Industry ExperienceDonna Oakes is a Tax IT Senior Manager in Johnson & Johnson's tax department. She is responsible for the implementation process and administration of the global Tax Provision and OWM/Dataflow suite. Prior to this role her responsibilities involved financial reporting of taxes and direct tax compliance, and handling state tax optimization initiatives. Prior to working at J&J, Donna worked at a large multinational insurance company.

Roles and ResponsibilitiesDonna is the Project Lead and has worked closely with the KPMG team on this engagement.

Source: J&J

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Amanda KovalSenior Tax Analyst, Tax Technology Johnson & JohnsonProfessional and Industry ExperienceAmanda Koval is a Senior Tax Analyst in Johnson & Johnson's tax department. She is an administrator of ONESOURCE as it's used in the global Tax Provision and OWM/Dataflow suite. Prior to this role and working at J&J, her responsibilities involved auditing tax accruals for large multinational companies and consulting her clients on tax return preparation and other various tax projects.

Roles and ResponsibilitiesAmanda is the Lead Analyst and worked closely with Donna and the KPMG team on this engagement.

Source: J&J

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Sanford “Sandy” FisherPrincipal, Tax Transformation and Technology, KPMGProfessional and Industry ExperienceSanford “Sandy” Fisher is a Principal in KPMG’s New York Tax Transformation (TT) practice. He has over 25 years of tax and process improvement experience, helping tax departments analyze, enhance, and improve their resources, processes, technology, data, strategy, and controls. Sandy has managed a significant number of transformational projects including tax process assessment, future environment design, tax department technology architecture, road mapping, provision software implementations, tax accounting performance improvement, vendor selections, data and analytics, enhanced resource models, MS SharePoint configurations, tax data warehousing, benchmarking studies, country-by-country reporting, IFRS/ASC 740, and solving operational issues related to the financial reporting for taxes.

Roles and ResponsibilitiesSandy is the Project Owner/Partner and overall quality assurance lead. Sandy worked very closely with Joe and other KPMG resources to support Joyce and Donna’s teams.

Source: KPMG

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Confidential and Proprietary

Josh MarottiSenior Manager, Tax Ignition, KPMGProfessional and Industry ExperienceJosh is a senior manager in KPMG’s New York Ignition office. He focuses on the design and delivery of analytics, automation, and integrative technology for the tax function. Josh utilizes his background in strategy development, data and analytics, and process improvement methodologies to identify pain points and develop end-to-end technology solutions. Focus areas include tax data management, tax process automation and integration, tax analytics, and tax department technology strategy. Josh has a Master of Science in Analytics and is certified in multiple analytics and automation technologies.

Roles and ResponsibilitiesJosh is the Project Development Lead and was responsible for all architecture and development of the automated Alteryx solution.

Source: KPMG

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Confidential and Proprietary

Objectives

1) Understanding user administration challenges and solutions to maintain a detailed setup and meta-data values.

2) How J&J identified Alteryx as a suitable solution to help with system administration.

3) Discussing how J&J ties out between their DataFlow, OTP and their consolidation systems.

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Confidential and Proprietary

Case Study OverviewBenefits160+ hours gained back in the year by automating the process with Alteryx

Problem StatementJ&J spent excessive, non-value add time manually setting up and maintaining CSC’s in OTP.

Project GoalAutomate the OTP CSC creation process, reducing risk of incorrect entries and eliminating manual work.

0.5

10.5

20.5

30.5

40.5

50.5

60.5

Q1Q2

Q3Q4

Original vs Future Processing Time (Hrs)

Orignal Future

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Alteryx Overview

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Self-service data and analytics

Share

Enrich

Prep and Blend Analyze

What is Alteryx?

Amazon

MongoDB

SASNetSuite

PivotalXML

MarketoApache Hadoop

TweeterSQL

ServerOracle

Amazon

Salesforce

Google Analytics

Input All Relevant Data

United States Census 2010

Experian TomTom Dun & Bradstreet

Output all popular formats

Alteryx

Tableau

Qlik

JSON

Excel

Oracle

Microsoft

Salesforce

Teradata

Source: KPMG

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Confidential and Proprietary

Why Alteryx?Do this…

… instead of this

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Where to use it? On any process that could benefit from:- Scalable and repeatable data processes - repetitive calculations or functions in Excel quarter

after quarter/ each year/ multiple versions

- Auditability and knowledge transfer - unlike Excel, you know exactly what has been done with the data at every step and you never actually modify the original data file

- Efficiency - significant data manipulation of data such as combining many or extremely large files especially if teams are experiencing frequent Excel crashes

- And many others

Example Tax Use Cases:- Trial Balances Transformation- Provision Automation- Fixed Assets Data Automation- R&D Credit Studies

Example General Use Cases:- Merging and comparing datasets- Transforming data formats- Combining multiple files- Advanced analytic applications

Why Alteryx for Tax?

Source: KPMG

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Case Study:Alteryx automation for OTP

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Confidential and Proprietary

Project OverviewBackgroundJ&J was spending excessive time managing and maintaining the set up and administrative functions of OneSource Tax Provision (OTP). Time consuming activities include preparing entities, adding entities, assigning the proper Custom Sub-Consolidation (CSC), and assigning users.

ObjectivesBased on discussions with J&J, KPMG has identified the following project goals in relation to automating the (OTP) set up process:- Automate the processing of adding entities following an acquisition or structure changes including

the data gathering, transformation, enrichment, and review of new entity data- Standardize the process and increase transparency into the data, automatically surfacing potential

errors and exceptions/OTP updates required- Significantly reduce the time and manual effort required to process setup of new entities post-

acquisition

Source: KPMG & J&J

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Original Process: OTP Tax Provision CSC Setup

Confidential and ProprietarySource: KPMG & J&J

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New Process: OTP Tax Provision CSC Setup

Confidential and ProprietarySource: KPMG & J&J

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Confidential and Proprietary

Benefits

- 82% reduction in time spent on the manual CSC creation process

- 160+ hours gained back in the year by automating the process with Alteryx

- Significant reduction in errors and risk of incorrect data

- Automated analytical reports to identify anomalies and monitor quality

Source: KPMG & J&J

0.5

10.5

20.5

30.5

40.5

50.5

60.5

Q1 Q2Q3

Q4

Original vs Future Processing Time (Hrs)

Orignal Future

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Confidential and Proprietary

Key Success Factors

Build for the complexity needed, and then simplify.

Keep logic transparent.

Detailed current process assessment.

Must have a detailed understanding of OTP and Alteryx to properly translate requirements.

Leverage pre-checks wherever possible.

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Confidential and Proprietary

Special Features and Design

Documentation and Navigation

KPMG Custom Tools

Excel-based Master Data

Excel Pre-checks and Analytics

Source: KPMG

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Confidential and Proprietary

Workflow Overview

Source: KPMG

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Understanding your company’s Alteryx roll-out strategy

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Confidential and Proprietary

Governance

Approve• Ensure proper approvals

and reviews before using Alteryx workflows in production

Follow• Follow your company’s

guidelines for building and documenting workflows to ensure:‒ SOX Compliance‒ Confirm User Access

Control and Management‒ Standardization‒ Sustainability

Review• Review workflows annually

and update as needed to reflect change in business operations and data sources

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1. Build the business case:

• Describe the opportunity

• Document & challenge the current state and data sources

• Identify the frequency, duration of the current process and resources involved

• Identify the benefits or efficiencies that will be gained by automating the process

• Determine if Alteryx is the right solution in conjunction with your tax technology partner – Business and Tax technology approval

Getting Started

Source: J&J

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Next Steps – J&J Process

Source: J&J

2. Complete compliance analysis‒ Is this process flow Sox Relevant?

‒ Gain approvals (Tax Technology, IT Architecture, Business Owner & Global Automation Owner, audit)

‒ Submit project via Global tracking tool

3. Build Workflow and Server subscription‒ Identify Power user and project team

‒ Define, Review and Optimize data source, process and outputs‒ Build and test workflow (iterative process)

‒ Identify access to Alteryx subscriptions

‒ Publish Alteryx flows on server and test

‒ Set up change management control in TFS (Team Foundation server)

4. Document and monitor‒ Monitor Results & track metrics / benefits

‒ Document with SOP (Standard Operating Procedure)

‒ Monitor if updates to the workflow are required

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How do we ensure OTP ties to our internal consolidation tool?

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Confidential and Proprietary

OTP to Consolidations tool- Project OverviewBackgroundJ&J was spending excessive time validating ONESOURCE DataFlow to ONESOURCE Tax Provision (OTP) to J&J Consolidation tools. Time consuming activities included opening several individual DataFlow templates, running OTP reports, and manually typing/copying the data into the consolidation file.

Objectives- Automate the processing of extracting key data from 700+ DataFlow templates- Set up Batch reports to run all OTP reports- Significantly reduce the time and manual effort required to consolidate and analyze any differences

between OTP and consolidation tools

Source: J&J

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Confidential and Proprietary

Original Process

J&J consolidation tool

Multiple ONESOURCE DataFlow templates

ONESOURCETax Provision

Open 700 individual entity DataFlow templates

(3 minutes per template)

Run individual consolidation

reports by entity (6)

Run BRAVO consolidated

reports

Manually type data into consol file

Consol file

Copy data into consol file

Copy data into consol file

U nit Summary

(L&R)

Temp Diffs

Summary (L&R)

Payable(L&R)

Source: J&J

Excel (XLSX)

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Confidential and Proprietary

Automated Alteryx Process

J&J consolidation tool

ONESOURCE DataFlow

Use extractions to pull DataFlow data all at once across 700+

templates

Run consolidated reports via Batch

Report

Run consolidated report

Consol fileONESOURCETax Provision

U nit Summary

(L&R)Temp Diffs

Summary (L&R)

Payable(L&R)

Source: J&J

Excel (XLSX)

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Confidential and Proprietary

Workflow

Source: J&J

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Questions?

Appendix

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Confidential and Proprietary

Timeline Project Apr May Jun Jul Aug Sep Oct

Requirements gathering and kickoff workshop

Ongoing development and build

Progress workshop and draft delivery

Parallel testing and feature refinement

Deployment

Support (as needed)

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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.

© 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. NDPPS 895755

The KPMG name and logo are registered trademarks or trademarks of KPMG International.