EXA and EY, a leading professional service firm in international tax and transfer pricing, have joined hands to provide Tax and Finance departments a unique approach to address operational transfer pricing requirements. Together with EY, tax and financial professionals of multinational enterprises can now benefit from functional advice addressing fiscal requirements in addition to EXA’s related IT and in particular SAP expertise, including an innovative software tool from EXA, namely OTP.
EXA is pleased to introduce OTP (Operational Transfer Pricing), a comprehensive IT solution for handling Transfer Pricing (TP) operations. Based on functional input from EY, OTP automates P&L segmentation and provides group-wide inter-company price & margin management, transaction matrix as well as profit-split views spanning the entire value chain. Existing systems for TP documentation at customers can be connected and source required segmented TP data from the OTP data repository. The solution significantly eliminates manual processes from data collection to final documentation for tax purposes.
Furthermore, OTP provides an intuitive, user-friendly management dashboard, featuring all deviations from the organization’s TP requirement. Users can generate an inter-company transaction map to view transactions between selected entities. Year-to-date reports enable continuous monitoring and appropriate adjustments of transfer prices, thereby avoiding major year-end adjustments. This reduces compliance risks and any potential negative tax implications. OTP covers all essential requirements for operational inter-company price and margin management. Besides these standards, it is possible to easily adapt the solution to specific customer requirements.
Contact us or our cooperation partner EY and benefit from the positive synergies resulting from our close cooperation.
Further Reading: EY on Operational Transfer Pricing