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, 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:

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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 Transaction Groups, Functions and 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 utilizing 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 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, Transfer prices or TP methods

EXA Operational Transfer Pricing

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Extremely user-friendly interface

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Latest web technology

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Slight learning curve

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Provides 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 required IT system elements to efficiently monitor Transfer Pricing activities

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Continuously updated access to intercompany 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 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.

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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

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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.

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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

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 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

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

Catch us at

Webinar: “TP Insight” – Operational Transfer Pricing with EXA OTP – a SAP add-on with an integrated connection to ERP systems

The automation of Operational Transfer pricing processes is becoming increasingly important. Without ongoing monitoring of (segmented) margins along the intra-group value chains...

Embracing the automation of Transfer Pricing

Frank Schoeneborn and Divya Vir Rastogi of EXA AG discuss how the development of state-of-the-art operational transfer pricing solutions are enhancing the day-to-day work of tax...

EY partner joins EXA, the software company for Operational TP

Dr. Frank Schöneborn, transfer pricing partner at Ernst & Young in Mannheim, Germany, joined EXA in April 2020. The Heidelberg-based software house, a close SAP partner,...

EXA @ TP Minds International 2020

EXA will be participating again in the the world’s largest gathering of Transfer Pricing minds: the TPMinds International Conference, in London on March 24th/25th. TPMinds...

Operational Transfer Pricing Automatisierung – EXA AG in REthinking: Tax

It is not uncommon for tax departments to struggle with creating visibility on TP & IC Margin data for ongoing monitoring as well as in preparation of yearly documentation...

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