Transfer pricing perspectives: Winds of Change - PwC

TPi – DashboardAfter the extraction process, thestandardised and streamlined data isexported to the TPi dashboard. Thispresents the C-suite with a bird’s eye viewof the overall transfer pricing activitiesacross the global enterprise.The dashboard shown here showcases fourkey applications in each quadrant:• The upper left quadrant presents anoverview of the economic structureof the global company including thelegal entities and relevant businesstransaction flows.• The upper right quadrant is theperformance matrix. This is a high levelrepresentation of the global entitiescategorised by geographic region,transaction materiality and magnitude.The performance matrix uses a coloursystem to highlight where transferpricing is out of alignment (i.e. thered box). By clicking on any box in theperformance matrix, a new screen witha pie chart will open. The pie chart isdesigned using a layering concept; themore you click, the deeper the layersand the more detailed the informationavailable (i.e. from high level financialinformation to segmented financialinformation by function to financialinformation by product SKU).• The lower-left quadrant presents anaction calendar.• The lower-right quadrant presentsaccess to the “Transfer PriceAdjustment” function. This function isdesigned for transfer pricing volatilityanalysis. Users can manually enter thetransfer prices they desire to identifythe financial statement impact.The apps in the TPi Dashboard canbe tailored to provide different viewsor tools as appropriate. For example,performance matrix by region and entitiescan be modified to track performance byvalue chain.TPi – our approachWhile the core components of TPi – DataManagement and Dashboard – are relevantfor all companies, each company’s factpattern and needs are unique and soare your business, tax and technologychallenges. No commercial softwarecurrently works out-of-the-box to addressthe complex challenges of transferpricing management.The goal behind PwC’s TPi platformvision is to accelerate the integrationand enhancement of transfer pricingmanagement. Based on your company’sspecific needs, we can leverage our knowhowto provide technology services to buildon your pre-existing technology frameworkand customise a solution specifically toyour company’s transfer pricing needs. Webelieve you will make significant steps inenhancing your overall value chain, as wellas reduce the risks of transfer pricing errorsand audits.Figure 2The TPi DashboardFigure 3TPi ProcessExisting infrastructureExisting data resource(e.g. ERP systems)TPi solutionPwC’sknowledge of:• Industry bestpractices• Market trendsTailored solution30 Transfer Pricing Perspectives. October 2011