Case Study: Calculation of transfer prices

Home Services Digital Case Studies Case Study Calculation of transfer prices

INTRO

PROJEKT

KONTAKT

Automatic transfer pricing calculation based on actual and planning data

In many companies, the calculation of transfer prices is still based on complex and sometimes error-prone spreadsheets. Tax departments often note a lack of transparency regarding the underlying data and are dependent on their controlling colleagues when it comes to operational transfer pricing (OTP).

For quite some time, system-based OTP solutions were primarily reserved for companies that do not shy away from large implementation projects. With the increasing opportunities that self-service analytics solutions offer, we now see a rise in practical approaches that can be realized already within a moderate project timeframe.

Read the following case study based on a real-life example to find out more about our experiences from a successful optimization project using Low Code solutions.

The project

The project covered the analysis, optimization and automation of the processes for calculating transfer prices for goods transactions on material/SKU level.

Challenge / initial situation

- Manual analysis of actual P&L data and planning data from different sources using Excel

- Repetitive execution of many individual work steps for a large number of companies in separate Excel files

- Time-consuming updates in various files and spreadsheets in case of changes compared to the previous year

- Intransparent calculation files due to the combination of original calculations, data validations, plausibility checks and adjustments for special cases

Solution

- Merging of all relevant data and data preparation "at the push of a button"

- Automated P&L segmentation in line with transfer pricing criteria

- Automated calculation of target gross margins per segment and of transfer prices at material/SKU level, including additional calculation rules for special cases

- Automated plausibility checks and data validation steps

- Output of calculation results and templates for SAP bulk upload for all companies in the desired format

Our approach

- Status quo: analysis of current processes, weaknesses and improvement potential

- Target vision: definition of the optimization and automation strategy for future target processes

- Implementation using the common advanced analytics solution Alteryx

- Training in the general use of the software and onboarding to the specifics of the implemented use case

Added value for the practice

- Time savings as relevant data is simultaneously processed and repetitive manual steps are eliminated

- Foundation for further improvements to effectively steer transfer prices as more frequent calculations and transfer pricing adjustments are enabled

- Improved transparency thanks to comprehensive data overview and automated checks

- High flexibility and easy implementation of changes

- Increased reliability of processes and traceable documentation of work steps

Conatct

Would you like to find out more about the case or your own optimization potential? Please let us know. Please fill in our short contact form. We will get in touch with you as soon as possible.

Main Contact

Miriam May

Director Digital

Digital Transfer Pricing & AI

Nuremberg

View Profile

Main Contact

David van Leuven

Director Digital

Dusseldorf

+49211957828537

View Profile

Contact us today

Do you have any questions about our services or WTS? Please let us know. Please fill in our short contact form. We will get in touch with you as soon as possible.

Contact