Operational Transfer Pricing (OTP)
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).
Tight integration with all your SAP systems without you having to worry about the preparation of often cumbersome data
Working in your familiar SAP environment with all the advantages of data security, authorizations based on defined roles, and single sign-on, etc.
Easy customization of the solution to meet your exact needs
Automatic segmentation of P&L in line with your transfer pricing policy with drill down to every single transaction
On-the-fly reconciliation with SAP accounts at any time
Integration of your own forecast data or use of inbuilt forecasting mechanisms to visualize year end scenarios
Calculation of transfer prices for every single product and for every relationship while considering the impact of customs, etc.
Writing back the new transfer prices to your SAP systems
Unprecedented monitoring and reporting capabilities enabling you to always stay on top of your business
Seamless collaboration with group entities regarding allocations, forecasts, and price setting, etc.
Full traceability of actions taken at any time
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.
Standardized auto-harmonization of TP-related data extracted from (multiple) source systems – from SAP R/3 to SAP S/4HANA
Out-of-the-box interfaces for various SAP data sources (e.g., ACDOCA, PCA, COPA, BW)
Precise identification and treatment of complex intercompany transactions, such as cross-company sales or drop shipments
Automatic TP updates by writing optimized prices directly back to condition records in the ERP systems on both the supplier and receiver sides
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.
Fully automated segmentation of P&L according to TP relevant dimensions and attributesr
Enhanced segmentation dimensions available, such as division, transaction group, function, TP partner, IP owner
Easy reconciliation to SAP accounts at any time
Powerful multi-level allocation engine that includes pre-allocations carried out in SAP avoiding any manual cost allocation effort
Up-to-date TP deviations to the target profit margin at every relationship level
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.
“Intercompany Map” providing visualization of intercompany flows from a bird’s eye perspective for all transaction groups at all relationship levels
Intuitive “Management Dashboard” application that provides a global overview of tax risk exposure
High-risk transactions on a radar to initiate countermeasures
Automated “Transaction Matrix” with inbound/outbound intercompany charges between all legal entities for easy documentation
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.
Automated forecast generation for remaining periods until the year end
Enable early warning to understand the most probable year-end scenario and resulting tax/transfer price risk on entity level from final deviations
Auto-forecasting of SGA/OPEX accounts
Option to upload existing forecast data or allow manual input
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.
Automated calculation of optimal transfer prices achieving the targeted margin objective at the year end
Option to optimize single IC relations and specific segments within entities with margin impact simulation on-the-fly
Calculation of new TPs for new materials/relations based on various pricing strategies
Consideration of landing costs or stock-on-hand when calculating optimal transfer prices
Transfer prices calculation with workflow approval and audit trail
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.
Integrated, fully customizable and intuitive workflow functionality across various OTP applications
Efficient cross-functional and cross-entity collaboration for IC forecasting and transfer price calculation
Flexible approval flows by division, entity, and IC relation
Notifications via “Workflow Manager”, standard SAP Inbox (“My Fiori Inbox”) or email
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.
EXA OTP enjoys the same data security as that of underlying SAP systems
Single sign-on with existing SAP users
SAP roles and authorizations in line with your GRC strategy