EXA Operational Transfer Pricing Software (EXA OTP)
EXA OTP is a robust, flexible, and deeply integrated standard SAP add-on solution that empowers multinational enterprises to automate, monitor, and optimize intercompany transfer pricing—while ensuring compliance, transparency, and operational efficiency across global value chains.
EXA Operational Transfer Pricing Software (EXA OTP)
Benefits of EXA Operational Transfer Pricing Software
EXA Operational Transfer Pricing software provides strategic, financial, and compliance advantages for multinational enterprises (MNEs).
Real-Time Data Integration Down To SKU Level
- Connects with ERP systems and financial data across countries and business units
- Enablse dynamic application of transfer pricing policies incl. write-back automation
- Aligns with clean SAP core principles
Improved Tax/TP Compliance & Risk Management
- Ensures continuous alignment with OECD guidelines, local regulations, and TP documentation requirements
- Reduces tax audit risk, double taxation and exposure to penalties and interests
- Aligns TP with customs value and reduces overpaid customs duties
Profitability Monitoring & Intercompany Margin Control
- Tracks and monitors intercompany margins throughout the year
- Helps meet target profit levels and arm’s length pricing standards
- Provides transparency on SG&A allocations and segment results by business division, transaction group, IP holder and/or transaction partner
Automation of Complex Price setting Calculations using Forecasts
- Provides forecasting features predicting results before and after any TP changes on SKU level
- Automates transactional-level TP calculations in line with TP methods calculations (e.g. cost-plus, resale minus, TNMM)
- Considers impacts on customs and aligns with TP with customs value
Faster Year-End Adjustments
- Improves group ETR predictability for Tax Directors and CFOs
- Streamlines true-ups and retroactive adjustments across jurisdictions
- Reduces closing timelines and tax provisioning effort
Centralized Policy Management
- Standardizes transfer pricing execution across the group for all intercompany price calculations
- Provides audit-ready documentation and easy traceability including workflows
- Minimizes manual errors and enhances consistency
Strategic Insights on Intercompany Trades Allowing Scenario Planning
- Enables simulation of transfer price scenarios, tax and customs impacts
- Supports decision-making and tax optimization
- Highlights trends allowing early intervention
Lower Operational Costs
- Reduces dependency on external consultants and manual processes
- Enhances internal resources in Finance, Tax, Business and IT efficiency
Enhanced Transparency & Audit Trail
- Standardizes transfer pricing operations for the whole group
- Provides clear visibility into current tax risk position
- Features integrated SAP approval workflows for hightest efficiency
- Facilitates easier internal reviews and external audits
EXA and TP Lifecycle
Operational Transfer Pricing is the operational backbone of the transfer pricing life cycle. It ensures that what is planned is actually executed, monitored, and adjusted in real time – allowing multinational enterprises to maintain compliance, reduce risks, and optimize financial outcomes across jurisdictions.
EXA OTP contributes and supports each phase of the classical transfer pricing life cycle:
Planning
While traditional tax planning sets the arm’s-length policies and TP methods, EXA OTP ensures those plans can be practically implemented in financial and operational ERP systems across the group’s legal entities.
Implementation
- Translation of the tax planning and TP policy into action by monitoring with data, extracted from ERP and accounting systems, providing standard reports
- Tracking of actual performance vs. target margins throughout the year
- Enableling of proactive adjustments to meet compliance and finacial goals before year-end
- Providing real-time visibility into intercompany profit levels across entities and business divisions
- Creating forecast scenarios or alternatively use existing forecast data to predict whether transfer pricing updates are required on a transactional relationship basis to be compliant
- Handling of day-to-day calculations of intercompany pricing on product or SKU level, applying e.g. mark-up or discount factors and allocations
Documentation and Compliance
- Generation of consistent, audit-ready data that supports master/local file documentation and CbC reporting
- Helping defend transfer pricing outcomes with group-wide consistent transactional data
Controversy Management
- Providing detailed audit trails and transactional evidence that can significantly improve outcomes during tax audits or disputes
- Support of transparency and consistency in defense strategies
Intercompany Management Use Cases
Deep dive into Intercompany Management Use Cases
Features of EXA OTP
Compelling highlights of EXA Operational Transfer Pricing software for multinational enterprises:
SAP-Integrated Configuration and Setup:
- SAP-certified add-on, fully compatible with SAP ERP, S/4HANA, ECC 6.0. It is built on core components like HANA, NetWeaver and Fiori – enabling clean integration and maintainable architecture
- Flexible deployment options: on-premises, public cloud or hybrid – leveraging the SAP Business Technology Plattform (BTP) for the cloud version
Data Collection and Management:
- Automated extraction of transactional data across modules – such as accounting, logistics, material management – via SAP ETL plugins, or flat-file uploads for non-SAP sources
- Enabled automated grouping of intercompany transactions by partner, using system rules which are customized for multistage value chains
Transfer Price Monitoring and Reporting | Intercompany Forecasting | Transfer-Price Setting:
- Real-time, segmented P&L reporting with dashboards and intercompany maps (IC) to visualize flows by product, entity, or partner – complete with drill-down functionality
- Year-to-date monitoring, year-to-go forecasting, and price-setting simulation at granular levels, including materials or SKUs
- Workflow enabled approval processes for transfer price adjustments, including batch or item-level updates
- Features to align computed TPs on SKU level with customs value predicting impacts when TPs are changed
- Facilitates year-end adjustments, aligning with customs valuation requirements and enabling effective tax rate (ETR) simulations on both group and local levels
Technical and User Experience Features:
- Modern, customizable SAP Fiori interface ensures intuitive, browser-based access
- In-memory processing (HANA) supports rapid handling of large datasets
- Strong security architecture leveraging SAP’s native authorization controls
- Preconfigures modules with extensive customizability – even tailored developments for specific TP mechanisms like R-, C+, TNMM comutations including multi-level cost allocation
Usability and Value for Corporate & Business Functions:
- Simplifies onboarding, thanks to the familiar Fiori UI
- Reduces training time and reliance on spreadsheets
- Improves strategic and operational outcome by accelerating intercompany processes, lovering intern/external consultant costs
- Maintains a clean SAP core
- Helps reduce risk of double taxation, fines, and interest through transparent, consistent documentation and data
Implementation Approach
Download the implementation approach for EXA Operational Transfer Pricing
Technical Details
Download the technical details of EXA OTP
FAQs
What is Operational Transfer Pricing Management?
Operational Transfer Pricing (OTP) is a strategic approach that enables multinational enterprises (MNEs) to accurately and efficiently implement their transfer pricing policies in their day-to-day financial operations. While traditional transfer pricing focuses on setting policies and ensuring compliance through documentation, OTP emphasizes the practical execution of these policies within the company’s ERP systems and intercompany pricing processes.
Operational Transfer Pricing Management is responsible for the intitial setting and updating of Transfer Prices including data maintenance in the systems of all group legal entities trading with each other.
In addition, it is responsible for the active and continuous monitoring of the entities’ financial results, turning the knowledge gained from variance analysis into corrective measures to ensure an arm’s length pricing and corresponding remuneration.
Can you apply different transfer pricing methods in EXA OTP?
EXA OTP supports a wide range of transfer pricing methods, aligning with OECD guidelines and local country tax rules. Its flexibility allows multinational enterprises to implement both traditional and transactional profit-based methods, depending on the nature of intercompany transactions, the function and risk profile, and data availability.
- Transfer Pricing Methods Supported by EXA OTP
- Transactional Net Margin Method (TNMM)
- Cost Plus Method (C+)
- Resale Price Method (R-)
- Profit Split Method (PS / RPSM)
EXA OTP allows configuration of:
- Multiple TP methods with Profit Level indicators per entity or transaction group
- Transaction-based TP method assignment (e.g., based on transaction type, region, or product
- Year-to-date and year-to-go monitoring of target margins for each segment defined by TP function and TP method
- Scenario simulations for applied TP method when forecasting for TP optimization
Can you do TP documentation with EXA OTP?
EXA OTP is not a TP documentation generation tool, but it plays a critical role in powering documentation by providing accurate, consistent, and audit-ready data. Specifically, it generates the operational data needed for TP documentation on group or local level:
- Intercompany transaction details
- Actual vs. target margins (YTD and YTG)
- Segmented profit & loss statements
- Applied markups and adjustments
- Revenue- or Cost base calculations (for cost-plus or TNMM)
- Entity-specific transfer pricing outcomes
Supports factual backing for:
- Local files (e.g., tested party data, financial outcomes)
- Master file annexes (e.g., value chain flows)
- Country-by-Country (CbC) reports (segment-level allocations)
- Provides audit trail of applied TP methods and logic
- Ensures consistency between planning, execution, and reported results (which is crucial for defending TP documentation)
EXA OTP does not produce Master Files or Local Files in OECD format (e.g., Word, PDF, or XML-based compliance files) and does not include benchmarking searches (e.g., external comparables or TNMM databases like Bureau van Dijk).
What are the deployment options for EXA OTP?
(1) On-Premise Deployment
Ideal for organizations with existing SAP ERP (ECC 6.0 or S/4HANA) infrastructure and strict data control requirements.
- Key Characteristics:
Installed directly into the customer’s SAP landscape. - Runs on SAP NetWeaver and leverages SAP HANA for in-memory processing.
- Keeps a clean SAP core—add-on does not modify standard SAP tables or processes.
- Full control over infrastructure, security, and update cycles.
(2) Public Cloud Deployment (SAP BTP Edition)
A modern, scalable deployment via the SAP Business Technology Platform (SAP BTP)—ideal for rapid onboarding and minimal IT overhead.
- Key Characteristics:
Delivered as a Software-as-a-Service (SaaS) solution via SAP BTP. - Accessible through a browser-based Fiori UI—no installation needed on local servers.
- Data securely exchanged via standard SAP connectors or APIs.
- Centralized updates and maintenance.
What pricing models does EXA offer?
The license pricing model of EXA OTP (Operational Transfer Pricing) is generally based on a modular, scalable structure, tailored to the size and complexity of the multination group. The licensing model typically considers the number of legal entities and the set of feature s and functionalities that a multinational enterprise wants to use.
What AI capabilities does EXA OTP have?
EXA has recently launched the Intercompany Management AI Assistant – called exa nexus. exa nexus transforms how your teams handle intercompany processes – from routine inquiries to complex compliance assessments and system configurations.
Key capabilities:
- Instant connectivity – links transfer pricing products, services, and entities with cross-reference capabilities
- Smart recommendations – delivers contextual guidance based on inquiry patterns and compliance scenarios
- Comprehensive knowledge access – provides complete answers spanning all transfer pricing domains
Does EXA AG work with implementation partners?
EXA AG works with implementation partners to deliver and support the deployment of its Operational Transfer Pricing (OTP) solution and other SAP-based software. This is a key part of its delivery model especially for global rollouts or large-scale SAP environments.
EXA AG often collaborates with SAP consulting firms, Big Four tax advisors, and specialist transfer pricing boutiques or IT integrators.
These partners typically deliver as part of the implementation of EXA OTP:
- Leading or supporting the technical implementation (e.g. system setup, interfaces)
- Assist with transfer pricing design and process integration
- Provide post-go-live support and customizations
EXA provides the software, core documentation, and technical enablement (training, configuration guides and other support.
How will non-SAP data of legal entities integrated in EXA OTP?
Even if a legal entity of the group does not use SAP ERP (ECC or S/4HANA), it can still be fully included in the EXA OTP environment. EXA OTP is designed to be ERP-agnostic at the data integration layer, meaning it can collect, standardize, and process data from non-SAP systems as well.
(1)Flat File Uploads
Non-SAP entities can export their financial and transaction data into CSV, Excel, or XML files. These files are then uploaded manually or via automated scripts to EXA OTP. File templates are predefined by EXA, covering e.g. intercompany transactions on document level, business partner data and various master data mappings.
(2) ETL Integration (Custom/Individual Connectors)
For larger non-SAP ERPs (e.g., Oracle, Microsoft Dynamics, Infor, JD Edwards), EXA can use:
- ETL tools (e.g., SAP Data Services)
- Middleware / integration platforms (e.g., SAP BTP)
- APIs or database connectors (direct read access)
- 3 Data Warehouses or Data Lakes
If a group uses a central data warehouse (e.g., SAP BW), EXA OTP can extract data directly from that source. This is a common model in large enterprises where multiple ERP systems (SAP and non-SAP) feed into a consolidated data layer. Data is already cleaned, harmonized, and ready for margin monitoring.
What key factors will influence the project runtime?
The implementation time for EXA OTP (Operational Transfer Pricing) depends on several technical, organizational, and functional factors. To keep the project on time and within scope, certain success factors must be managed proactively from the start.
Key Factors Influencing EXA OTP Implementation Time
(1) ERP System Landscape Complexity
Multiple source SAP systems (ECC, S/4HANA) or hybrid setups require more integration effort for data automated extraction. Non-SAP entities add time for file-based or ETL integration. Differences in master data structures, chart of accounts, or cost center hierarchies can increase mapping efforts.
(2) Data Availability & Quality
Poor data quality slows down testing and configuration. Missing intercompany identifiers, inconsistent partner data, or non-harmonized chart-of-accounts could require cleansing and manual work.
(3) Transfer Pricing Policy Maturity
Well-defined policies (e.g., margin targets, TP methods per entity, tested segments ensures faster configuration of EXA OTP. Projects with ongoing policy redesign (e.g. function and risk analysis, risk profiles, assigning TP functions and TP methods) may face rework or delays.
(4) Number of Legal Entities & Transactions
More entities with multiple TP functions and various transaction types might create more configuration, mapping, and testing effort. Complex intercompany supply chains (multi-step flows) require more effort as well.
(5) Internal Resources & Stakeholder Involvement
Lack of dedicated business/IT support can delay data extraction, the testing cycles and decision-making. Multiple stakeholder groups (tax, IT, finance, local controllers) may slow down alignment unless they are well coordinated by the project management office.
(6) External Dependencies
If concepts are developed by implementation partners, there could be delays resulting from that. If teams are changed teams on the implementation partner side, this could require extra time for onboarding them to the EXA OTP solution. Dependencies on parallel SAP projects (e.g., S/4HANA migration, central finance rollout) can also have an influence on the overall project timeline.
Does EXA AG have a global service and support structure?
EXA AG offers a global service and support structure for its Operational Transfer Pricing (OTP) software designed to support multinational clients across regions, time zones, and deployment models (on-premise or cloud). EXA provides multi-time zone support for clients in Europe, North America, and Asia-Pacific. Support is typically offered during core business hours, but extended support is available via specific support contracts or SLAs. A dedicated support ticketing system (used for logging incidents, tracking issues, and accessing documentation is in place. In addition, Email-based support for direct queries and escalation.
Which licence models does EXA OTP offer?
EXA AG offers flexible licensing models for its EXA Operational Transfer Pricing (OTP) software to accommodate different customer needs, IT strategies, and deployment preferences. The main models typically reflect whether the software is cloud-based or on-premise, and whether it’s delivered as a subscription or perpetual license with annual maintenance.
In special cases, EXA OTP may be licensed as part of a package deal through SAP,
in collaboration with tax technology partners or with co-selling models where EXA and a system integrator offer a joint proposal for a large finance transformation program.
Are there regularly new releases of EXA OTP?
EXA AG regularly delivers new releases and updates for its EXA Operational Transfer Pricing (OTP) software. The release cadence and delivery method depend on the deployment model.
Is there any need for changes in the SAP ERP system when implementation of EXA OTP is planned?
No. EXA will devliver complementary source data extractors data from source SAP. The subsequent data enrichment and conversion process to get the required TP attributes assigned to the SAP documents will take place within EXA OTP in its own tables in its own namespace. There is no need for any preparatory work or data structure on the ERP system before EXA OTP can be installed.
What is the infrastructure requirement to deploy EXA OTP?
The EXA OTP solution will have to be hosted on a SAP HANA database with a netweaver stack. The database can be used from e.g. SAP S/4HANA, BW on on HANA or ERP on HANA. Further information on minimum release versions etc are available upon request.
