Operational Transfer Pricing (OTP)

Overview

A new level of transfer pricing automation based on the latest SAP technologies

Discover how finance, tax, and IT functions can benefit from automating planning, financial reporting, monitoring, and adjusting of transfer prices, to final documentation using EXA Operational Transfer Pricing (EXA OTP).

 

5

Tight integration with all your SAP systems without you having to worry about the preparation of often cumbersome data

5

Working in your familiar SAP environment with all the advantages of data security, authorizations based on defined roles, and single sign-on, etc.

5

Easy customization of the solution to meet your exact needs

5

Automatic segmentation of P&L in line with your transfer pricing policy with drill down to every single transaction

5

On-the-fly reconciliation with SAP accounts at any time

5

Integration of your own forecast data or use of inbuilt forecasting mechanisms to visualize year end scenarios

5

Calculation of transfer prices for every single product and for every relationship while considering the impact of customs, etc.

5

Writing back the new transfer prices to your SAP systems

5

Unprecedented monitoring and reporting capabilities enabling you to always stay on top of your business

5

Seamless collaboration with group entities regarding allocations, forecasts, and price setting, etc.

5

Full traceability of actions taken at any time

Tight integration

Close integration allows data to be retrieved from source ERP systems and then harmonized without any manual intervention. Costs and revenues related to the transactions in a period are properly matched, vendors are accurately identified, and data is automatically mapped to various OTP accounts. Furthermore, the transfer prices are written back to the condition records in the ERP systems in line with the related policies. This saves customers the extremely tedious and highly complex task of preparing and updating data.

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Standardized auto-harmonization of TP-related data extracted from (multiple) source systems – from SAP R/3 to SAP S/4HANA

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Out-of-the-box interfaces for various SAP data sources (e.g., ACDOCA, PCA, COPA, BW)

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Precise identification and treatment of complex intercompany transactions, such as cross-company sales or drop shipments

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Automatic TP updates by writing optimized prices directly back to condition records in the ERP systems on both the supplier and receiver sides

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File interfaces for non-SAP ERP system enabling secure connection and fast processing

Automatic P&L segmentation

A flexible, automatic, and very easy-to-use P&L segmentation application that segments your P&L data into the desired dimensions based on the rules defined and offers drill down options to each single transaction. The overheads are allocated with the help of a multi-level allocation engine, which also includes overheads already allocated in your ERP systems.

Z

Fully automated segmentation of P&L according to TP relevant dimensions and attributesr

Z

Enhanced segmentation dimensions available, such as division, transaction group, function, TP partner, IP owner

Z

Easy reconciliation to SAP accounts at any time

Z

Powerful multi-level allocation engine that includes pre-allocations carried out in SAP avoiding any manual cost allocation effort

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Up-to-date TP deviations to the target profit margin at every relationship level

Effortless monitoring

Continuous monitoring in transfer pricing operations is a must but this can only be achieved if the system can prepare and present the data in a format that is intuitive and easy to handle. EXA OTP monitoring applications do exactly that. You immediately see what needs your attention and action without wasting any time.

Z

“Intercompany Map” providing visualization of intercompany flows from a bird’s eye perspective for all transaction groups at all relationship levels

Z

Intuitive “Management Dashboard” application that provides a global overview of tax risk exposure

Z

High-risk transactions on a radar to initiate countermeasures

Z

Automated “Transaction Matrix” with inbound/outbound intercompany charges between all legal entities for easy documentation

Easy forecasting

What would your risk look like at the year end? What measures should you take now to avoid that risk? Questions such as these are what keep transfer pricing managers busy. The answer lies in finding a solution that can easily forecast the remaining periods. EXA OTP can integrate your existing forecasts or create new forecasts based on your past data and/or allow you to manually provide this information.

5

Automated forecast generation for remaining periods until the year end

5

Enable early warning to understand the most probable year-end scenario and resulting tax/transfer price risk on entity level from final deviations

5

Auto-forecasting of SGA/OPEX accounts

5

Option to upload existing forecast data or allow manual input

5

Collaboration between entities using workflow approval

Intuitive transfer price calculation

Transfer prices are calculated using your pricing strategies for individual products or automatically for the entire segment. This is supported by multi-level approval workflows that are customized for your business.

5

Automated calculation of optimal transfer prices achieving the targeted margin objective at the year end

5

Option to optimize single IC relations and specific segments within entities with margin impact simulation on-the-fly

5

Calculation of new TPs for new materials/relations based on various pricing strategies

5

Consideration of landing costs or stock-on-hand when calculating optimal transfer prices

5

Transfer prices calculation with workflow approval and audit trail

Seamless collaboration

Collaboration using state-of-the-art and familiar SAP workflows keeps things simple. The workflows are customized to your exact needs and the notifications come to your standard SAP Inbox and/or Workflow Manager and can later be tracked at any time.

5

Integrated, fully customizable and intuitive workflow functionality across various OTP applications

5

Efficient cross-functional and cross-entity collaboration for IC forecasting and transfer price calculation

5

Flexible approval flows by division, entity, and IC relation

5

Notifications via “Workflow Manager”, standard SAP Inbox (“My Fiori Inbox”) or email

Uncompromised security

There’s no need to worry about the security of your data. EXA OTP is an SAP add-on, which means that it enjoys the exact same security as your other SAP applications. The same goes for other features, such as single sign-on or SAP roles.

5

EXA OTP enjoys the same data security as that of underlying SAP systems

5

Single sign-on with existing SAP users

5

SAP roles and authorizations in line with your GRC strategy

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