EnsuringCompliance

EXA OPERATIONAL TRANSFER PRICING

Digitization for all aspects of Transfer Pricing Management

IMAGINE IF YOUCOULD

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, incl. comments, for every change of allocation rules, Transfer Prices or TP methods

TRANSFER PRICING IN

The Era of New Regulations

Historically, multi-national companies have grappled with Transfer Pricing (TP)-related processes and systems in order to satisfy regulatory and business objectives. Implementation of the Base Erosion & Profit Shifting (BEPS) project by the OECD will mean increased scrutiny in the eyes of the tax authorities.

Crucial elements in an effective Transfer Pricing 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

Companies struggle to address these basic Transfer Pricing 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.

The need of the hour is to achieve transparency in Transfer Pricing and monitor execution of the Transfer Pricing system. This is expected to provide clarity in Transfer Pricing transactions. An expected outcome is a reduced cost of doing business, with fewer audit findings and a lower risk of double taxation and penalties.

EXA provides THE comprehensive solution to capture, monitor, calculate and manage Transfer Prices while being fully compliant with regulatory needs.

The EXA OTP (Operational Transfer Pricing) solution provides an extremely user-friendly interface based on the latest web technology, allowing users to quickly understand and efficiently work with the system. The solution provides visibility across all TP related value chains in an organization, as well as detailed root cause analysis reports down to single transaction level. EXA OTP helps establish required IT system elements to efficiently monitor Transfer Pricing activities and enable continuous access to updated intercompany margin information on any level. The solution provides a greater level of control, enabling transparency and reporting insights and changing the way stakeholders manage end-to-end Transfer Pricing processes.

EXA OPERATIONAL TRANSFER PRICING

Comprehensive solution for

monitoring and managing

Transfer PricesSOLUTION HIGHLIGHTS

CUSTOMIZABLE SEGMENTATION OF P&LSegmentation 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 & SIMULATIONSimulate TP results and year-end deviations / adjustments by using existing forecasts or the inbuilt forecasting algorithms.

TP SETTINGFully 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 ANALYTICSExamples include profit split and transaction matrix views, SKU-level analyses and self-service analytics.

RULE-BASED, AUTOMATIC ALLOCATIONFlexibly allocated OPEX or SG&A costs based on predefined rules to all or multiple Transaction Groups, Functions and Partners.

FLEXIBLE CONFIGURATION OPTIONSUse 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.

About EXA: EXA is a leading provider of Digital Transformation solutions and services. EXA engages in delivering customized and niche solutions while leveraging SAP and non-SAP systems and technologies across Financials, Manufacturing, Big Data and Advanced Analytics.

Our close collaboration with SAP in the technology areas of S/4HANA, Analytics and SAP Cloud Platform helps us provide customers with cutting-edge solutions. Our financial products Global Value Chain and Operational Transfer Pricing enable our customers to further optimize their businesses and manage distributed locations. In Big Data and Advanced Analytics, we have specialized in a wide range of solutions in the areas of Big Data, Machine Learning, Predictive Maintenance, Emerging Issues Detection and Industry 4.0.

Operating globally, EXA offers proven solutions and cost-effective services to clients mainly in the manufacturing and process industries. Headquartered in Germany, EXA has presence with employees in Europe, India and the USA.

TECHNICAL OVERVIEWEXA OTP is a standard SAP® Add-On that runs on the SAP NetWeaver® stack and the in-memory database SAP HANA®, thereby taking full advantage of its accelerated processing power. It provides:

a modern, fully customizable Fiori interface for browser-based access

typical SAP-based security access controls which allow the implementation of virtually any kind of security concept

a pre-configured SAP ETL Plug-In, enabling fully automatic, recurring data loads from SAP source systems, and a file upload interface for non-SAP source systems

the choice between operating on an existing (local) SAP system and a cloud-based installation

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

EXA AG, Mittermaierstraße 31, D-69115 Heidelberg | otp@exa-ag.com | +49 6221 67921-0 | www.exa-ag.com

All content within this document is for informational and illustration purposes only, with no obligation to provide features. Functionalities can change within the scope of product development.