EXA for TP and Tax Management
Transfer pricing managers face significant challenges in managing intercompany transactions to ensure they align with complex and constantly evolving tax regulations. A primary pain point is the need to justify that all intercompany prices are at “arm’s length,” which is a highly data-intensive and subjective process. This is further complicated by the need to track and document every transaction across different entities, tax jurisdictions, and legal requirements. Additionally, a regularly updated tariffs list needs to be part of the operational transfer pricing process. Without a tax-compliant, automated transfer pricing software to manage this, transfer pricing managers risk exposing the company to audits, disputes, and penalties from tax authorities globally, creating a major barrier to financial efficiency and compliance.
EXA for TP and Tax Management
Key Challenges for Tax and Transfer Pricing Managers
Audit and Compliance
- Management of diverse transfer pricing regulations across multiple jurisdictions
- Management of new requirements
- Tax-compliant TP documentation
Configuration and Price Setting
- Effortless configuration of all relevant TP methods, TP functions and profit level indicators
- Intuitive OPEX allocation
- Calculation of TP at the material/SKU level
- Multi-level approval workflows
TP Management
- Year-to-date monitoring
- Year-to-go forecasting
- TP setting and documentation
- TP write back to ERP
- Effective tax rate simulation with impact analysis on ETR (group and local) and customs value
Data Integration and Standardization
- Fragmented data systems, like different ERP systems, databases, or spreadsheets
- Data quality issues decrease accuracy and consistency of data from multiple sources
- Easy data loading from multiple sources
Intercompany Management Use Cases
Deep dive into Intercompany Management Use Cases
How EXA helps
EXA AG provides specialized, integrated SAP standard software and deep subject matter expertise to give CFOs, Group Controlling, and Tax leaders complete end-to-end data transparency into their global value chains. The EXA Global Intercompany Management Suite streamlines intercompany processes to ensure global and local compliance, unlock a holistic view of group and local profitability, and drive operational efficiency, transforming complex finance challenges into strategic business advantages.
EXA Intercompany Management Suite
