EXA OPERATIONAL TRANSFER PRICING Ensuring Compliance · The EXA OTP (Operational Transfer Pricing)...

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Ensuring Compliance EXA OPERATIONAL TRANSFER PRICING Digitization for all aspects of Transfer Pricing Management

Transcript of EXA OPERATIONAL TRANSFER PRICING Ensuring Compliance · The EXA OTP (Operational Transfer Pricing)...

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 TP Aggregates, TP Functions and TP 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 deploying advanced analytics technologies

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

Dramatically reduce the time for manual 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, TP 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, calculate, monitor and manage Transfer Pricing.

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 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, calculate, monitor and manage Transfer Prices while being fully compliant with regulatory needs.

The EXA OTP (Operational Transfer Pricing) solution provides extremely user-friendly GUIs based on latest web technology allowing users to work with the system without a steep learning curve. OTP can provide an overview visibility across all value chains in an organization as well as detailed root cause analysis down to single transaction level.

EXA OTP can help establish IT system elements of a Transfer Pricing System to monitor Transfer Pricing activities and allow continuously updated access to IC margin information on any level. The solution can provide a greater level of control - enabling transparency and reporting insights. This will change the way stakeholders manage end-to-end Transfer Pricing process.

EXA OPERATIONAL TRANSFER PRICING

Comprehensive solution for

monitoring and managing

Transfer PricesSOLUTION HIGHLIGHTS

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

TP SETTINGIntegrated “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 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 pre-defined rules to all or multiple TP Aggregates, TP Functions and TP Partners

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

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 has designed OTP as a standard SAP® Add-On that runs on In-memory database SAP HANA® with a SAP NetWeaver® stack. It takes full advantage of the in-memory processing power of SAP HANA. It provides:

a modern, fully user customizable Fiori interface for browser-based access from any device

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

pre-configured SAP extractors and data interfaces for non-SAP systems

the choice to run on an existing (on-premise) SAP system to leverage infrastructure costs or a cloud-based installation

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

EXA AG, Daimlerstraße 32, D-69190 Walldorf | [email protected] | +49 (6227) 89901-0 | 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.