EXA Operational Transfer Pricing

Comprehensive solution for monitoring and managing Transfer Prices Schedule a DemoRegister for Webinar

Transfer 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, calculate, monitor, and manage transfer pricing.

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 the cost of doing business, resulting in fewer audit findings, and lower the risk of double taxation, interest charges for back-payments, and penalties. Crucial elements in an effective TP program include:

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Awareness of TP needs in the organization

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an organization to handle TP, including ownership

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TP policies and parameters

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enterprise systems for capturing TP-related data and its periodic processing

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comparing actual performance against TP parameters

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Addressing Deviations

Imagine if you could…

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Segment your legal entity P&Ls

according to tax needs by TP Aggregates, TP Functions and TP Partners

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Allocate overhead costs

(like OPEX or SG&A) automatically on account level

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Visualize

your TP related value chains for user-friendly analysis

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Forecast TP deviations

and possible year-end-adjustments by deploying advanced analytics technologies

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Reduce risks and losses

due to double taxation, interest payments for tax arrears and penalties

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Dramatically reduce the time

for manual data preparation

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Recalculate TPs for target corridors

taking inventories into account and negotiate new TPs via a workflow process before uploading to ERP

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See a full audit trail

including comments, for every change of allocation rules, TP prices or TP methods

EXA Operational Transfer Pricing

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Extremely user-friendly GUIs

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Latest web technology

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Slight learning curve

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Overview visibility across all value chains in an organization

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Detailed root cause analysis down to single transaction level

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Establish IT system elements of a Transfer Pricing system to monitor TP activities

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Continuously updated access to IC margin information on any level

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Greater control - enabling transparency, and reporting insights

Solution Highlights

Customizable segmentation of P&L

Segmentation by TP Aggregate, TP Function and TP Partner 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 predictive analytics forecasting algorithms

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TP Setting

Integrated “what-if” scenario analysis capabilities in conjunction with single or mass-calculation of new TPs. Workflow capabilities support the negotiation and communication of new TPs.

Extensive out-of-the-box Dashboards and Analytics

Examples include profit split and transaction matrix views, SKU-level analyses and self-service analytics

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Rule-based, Automatic Allocation

Flexibly allocated OPEX or SG&A costs based on pre-defined rules to all or multiple TP Aggregates, TP Functions and TP Partners

Flexible Configuration Options

Use Launchpad services to personalize and configure anything from TP Aggregates to Segmented P&L look and feel

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Full Flexibility

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

SAP Certified Integration with SAP S4/HANA

EXA OTP is certified by SAP to interoperate with SAP S/4HANA

Standard SAP® add-on

Runs on the in-memory database SAP HANA® with a SAP NetWeaver® stack

Modern and fully user customizable

Fiori interface for browser-based access from any device

SAP-based security access controls

Allows implementation of virtually any kind of security concept

Pre-configured SAP extractors and data interfaces

For non-SAP 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

Schedule a Demo

Webinars

Ensure compliance, monitor, and manage Transfer Prices with ease. Join us for the next EXA OTP webinar to learn how.