The Data Cleaner processes the data downloaded from the ERP system. It performs necessary harmonisation and transformation steps, such as eliminating inconsistencies that can occur when data is downloaded from different ERP systems or data sources. The formats of the input data are usually very different from customer to customer. The Data Cleaner is therefore the most customised software component. The Data Cleaner transforms the raw data extracts received from the customer into a standardised format or data model and generates compressed and encrypted data packets. The Data Cleaner component is preferably hosted by Optravis in the Microsoft Azure cloud (e.g. on European servers), but can also be hosted locally on a suitable server at the customer’s premises.

The Flow Analyzer is a custom-built high performance Business Intelligence solution optimised for operational transfer pricing purposes. Compared to traditional relational databases (SQL) or multidimensional cubes (OLAP), the Flow Analyzer uses an own developed in-memory graph database that is exceptionally fast.

Segmented reporting involves breaking down a company into its tax relevant functional segments and allocating revenues, COGS and OPEX to each segment. These segments can be fully customised in the tool to suit the client’s business model, as they are influenced by a number of individual factors such as management requirements, accounting standards and, most importantly, country-specific tax regulations. Differences between group GAAP and local GAAP can be maintained. Typical segmentation hierarchies are Company – Business unit – Function – Trading partner relationship.

The Price Setting Workbench module automatically calculates transfer prices per product and per trading partner relationship based on rules. For each defined segment, new transfer prices are generated based on pre-defined methods or requirements such as target margins, user-defined rules (external rules), user-defined parameters or thresholds (internal rules). The tool supports all transfer pricing methods (e.g. C+, resale minus, TNMM, profit split, CUP and mixed methods) and covers all commodity supplies (e.g. finished goods, raw materials, intermediate goods, etc.). Finally, the Workbench allows the calculation of all worldwide transfer prices, holistically optimised with any number of tax, TP, customs, anti-dumping, etc. rules. We can model direct and drop shipments as well as component manufacturing and project business. In addition, calculations for royalties, commissions, drop shipments or consolidated group margins can be managed.

Similar to the P&L segmentation, the Workbench includes comprehensive forecasting functionality, where forecasts are either generated automatically by the module itself, entered manually or imported by users (e.g. from budgets or existing forecasting systems).

In addition, a visualisation panel allows the creation of charts that illustrate trends for key financial data relevant to transfer pricing, such as prior years, actuals, forecasts.

With a negotiation workflow documented in the tool, the Pull Negotiation Workflow module provides the necessary flexibility for cases where automatic transfer pricing is not possible, permitted or desired. Typical examples are the pricing of new products, new trade relationships, special transport types, slow movers, old stock, key raw materials, etc.

The software already suggests an initial transfer price. It is possible to simulate the P&L impact of this new price.

As the reasons for setting the price can be documented directly in the comment field, it is fully traceable, even years later in tax audits, why who set which price. There is no need to search through emails and files.

The price list module provides the user with a customisable transfer price list for all global materials/products sold within the group. Existing conditions in SAP can be easily compared to the price list and modified via the bi-directional SAP interface. Alternatively, a customised export function can be implemented to generate files (e.g. XML or CSV) for batch upload via standard interfaces. An approval process for releasing the new transfer prices can be activated in the tool.

This module automatically checks whether the overwriting of conditions has actually taken place in SAP.

For companies that do not want to overwrite the transfer pricing conditions directly, we have developed different implementation variants (e.g. price splitting, mark-up 1 and 2, EBIT impact simulation for the difference between controlling and tax prices, etc.), so we are convinced that we can also offer a suitable and implementable solution for you.

The Tax Dashboard provides comprehensive access to all available key information at global, company, business unit and segment level for quick and efficient assessment of opportunities and risks. It allows the user to navigate directly between the Tax Dashboard and all other modules, e.g. to see the affected value flows in the Flow Analyser. Each user can create and save their own dashboard.

All information can be exported for analysis, presentation and transfer pricing documentation. The tax department can enter and maintain all interquartile ranges and target margins per segment worldwide.

The IC Matrix report generates the intercompany transaction matrix based on the transaction data covered by the data model. Any rules can be customised to map individual transactions to transaction groups. The transaction volumes correspond to the revenues of the respective functional P&L segments. Thanks to the high granularity of our data model, the user can easily break down the IC transaction group volume into all the underlying sales/invoices. This makes it easy to respond to tax audit requests within minutes, even years later, independent of other departments and any historical ERP changes/migrations.