EXA Operational Transfer Pricing
Comprehensive solution for monitoring and managing Transfer Prices Schedule a DemoRegister for WebinarTransfer Pricing in the era of new regulations
Where and how income is taxed is an increasingly complex issue for multinational companies which have to invest a great deal of time and effort in designing operational transfer pricing (OTP)-related processes and systems to ensure that all intercompany transactions and related accounting satisfy regulatory and business objectives
The implementation of the Base Erosion & Profit Shifting (BEPS) project by the Organization for Economic Cooperation and Development (OECD) also means increased scrutiny in the eyes of tax authorities.
Companies struggle to address these basic transfer pricing (TP) needs and are prone to follow an ad-hoc approach for some or all of them. This includes a patchwork of enterprise systems and manual activities to capture, monitor and calculate Transfer Prices and manage all related processes.
Ensuring compliance while managing data, and reporting aspects of Transfer Pricing
The need of the hour is to achieve transparency in OTP and monitor execution of the TP system
Enable clarity in TP transactions, and reduce cost of doing business, with fewer audit findings and a lower risk of double taxation and penalties. Crucial elements in an effective TP program include:
Awareness of TP needs in the organization
an organization to handle TP, including ownership
TP policies and parameters
enterprise systems for capturing TP-related data and its periodic processing
comparing actual performance against TP parameters
Addressing Deviations
Imagine if you could…
Segment your legal entity P&Ls
according to tax needs by Transaction Groups, Functions and Partners
Allocate overhead costs
(like OPEX or SG&A) automatically on account level
Visualize
your TP related value chains for user-friendly analysis
Forecast TP deviations
and possible year-end-adjustments by utilizing advanced analytics technologies
Reduce risks and losses
due to double taxation, interest payments for tax arrears and penalties
Dramatically reduce the time
for data preparation
Recalculate TPs for target corridors
taking inventories into account and negotiate new TPs via a workflow process before uploading to ERP
See a full audit trail
including comments, for every change of allocation rules, Transfer prices or TP methods
EXA Operational Transfer Pricing
Extremely user-friendly interface
Latest web technology
Slight learning curve
Provides visibility across all value chains in an organization
Detailed root cause analysis down to single transaction level
Establish required IT system elements to efficiently monitor Transfer Pricing activities
Continuously updated access to intercompany margin information on any level
Greater control - enabling transparency, and reporting insights
Solution Highlights
Customizable segmentation of P&L
Segmentation by Transaction Groups, Functions and Partners with the option to customize additional segmentation characteristics. Possibility to create user-defined KPIs and values through a user-friendly interface.
Forecasting & Simulation
Simulate TP results and year-end deviations / adjustments by using existing forecasts or the inbuilt forecasting algorithms.
TP Setting
Fully automated calculation of Transfer Prices to achieve target margins based on legal requirements and real-time impact simulation. The individually customizable workflow supports the negotiation and communication of new Transfer Prices.
Extensive out-of-the-box Dashboards and Analytics
Examples include profit split and transaction matrix views, SKU-level analyses and self-service analytics
Rule-based, Automatic Allocation
Flexibly allocated OPEX or SG&A costs based on predefined rules to all or multiple Transaction Groups, Functions and Partners.
Flexible Configuration Options
Use Launchpad services to personalize your home screen and customize application settings based on respective roles and authorizations.
Full Flexibility
through hosting options and user role defined functionality.
Seamless Integration
in the IT architecture as OTP uses standard SAP HANA & NetWeaver technology.
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Technical Overview
Certified by SAP
EXA OTP is certified by SAP to interoperate with SAP S/4HANA
Standard SAP® add-on
Runs on the SAP NetWeaver® stack and the in-memory database SAP HANA®
Modern and fully customizable
Fiori interface for browser-based access from any device
Typical SAP-based security access controls
Allows implementation of virtually any kind of security concept
Pre-configured SAP ETL Plug-In
Enables fully automatic, recurring data loads from SAP source systems, and a
file upload interface for non-SAP source systems
file upload interface for non-SAP source systems
Choose between existing (on-premise) or a cloud-based installation
Run on an existing (on-premise) SAP system to leverage infrastructure costs or a cloud-based installation