In the domain of Transfer Pricing compliance and management, the significance of data cannot be overstated. Swift and precise data access is not merely a convenience but a necessity.
Intercompany® functions as a comprehensive Transfer Pricing data repository, ensuring an exhaustive audit trail from the initial import to the final calculation. This capability becomes indispensable for ongoing compliance, year-end reporting, and interactions with tax authorities, whether for audits, disputes, or routine inquiries. The platform's analytical prowess further enhances financial analysis and the management of Transfer Pricing models, extending its utility to broader reporting requirements including International Tax, VAT, Pillar II, and CBCR.
Intercompany® adeptly manages enterprise data, encompassing master, financial, transactional, operational, and organizational datasets. This exhaustive data governance is paramount for precise implementation and execution of Transfer Pricing policies, from goods manufacturing to service provision.
The table below shows the four data types and their management.
Data type
Description
Master Data
This fundamental data includes entity structures, ledger formats, and profit centres, crucial for interpreting financial and transactional data. Spread across legal and ERP systems, master data lays the groundwork for comprehensive Transfer Pricing analysis.
Financial Data
Sourced from ERP systems, this data spans ledgers, P&L statements, and balance sheets. Finance departments, which oversee this data, can segment and analyse it by various dimensions, though it often lacks the specificity required for Transfer Pricing units.
Transaction Data
Detailing commercial transactions, this data is key for financial controllers and FP&A teams. It includes volumes, prices, and margins, offering a granular view into the company's commercial activities.
Other Data
This category encompasses miscellaneous data types, such as FTE counts and production details, vital for a holistic view of the company's operational metrics.
Intercompany® proudly introduces the Transfer Pricing Unit—a transformative dimension in Transfer Pricing data and reporting. This innovation empowers in-house Tax and Transfer Pricing teams to implement their policies with precision and ensures transparent reporting to tax authorities.
A Transfer Pricing Unit represents a segment within a legal entity defined by its unique transfer pricing methodology, profit profile, and, where applicable, a target margin. It could be an operational activity such as distribution or manufacturing, or it could represent a product category.
The introduction of the Transfer Pricing Unit has been met with enthusiasm from both Tax and Transfer Pricing professionals and Finance teams. It harmonizes with established business practices and streamlines the operational understanding of Transfer Pricing. Through legal entity segmentation into distinct Transfer Pricing Units, we facilitate a granular profit & loss analysis—crucial for transparency and visibility.
The framework adheres to OECD guidelines, ensuring compliance and global regulatory acceptance. It advances beyond the capabilities of traditional ERP systems, which lack inherent support for Transfer Pricing Units, and offers a sophisticated alternative to the cumbersome management of this data in spreadsheets. The Transfer Pricing Unit is a testament to our commitment to innovation in Transfer Pricing data management and reporting.
Intercompany® is designed to serve as the bedrock for Unilever’s enterprise data, providing a robust Transfer Pricing data engine capable of processing and interpreting vast and varied information streams with ease.
The process of data ingestion is a critical component, ensuring that data is not only collected but also transformed into a structured and valuable asset for the enterprise. Intercompany® leverages cutting-edge technology and sophisticated algorithms to streamline this process, handling diverse datasets with unparalleled proficiency.
The table below expands on our data ingestion capabilities.
Data Ingestion
Description
Diverse Data Handling
Intercompany® is adept at ingesting and synthesizing a wide array of data. From the detailed financial information such as ledger entries and sales records to forecasting and budgeting, all facets are processed with precision. The system’s capability extends to intricate transactional data, including sales breakdowns by country or division. Intercompany® also adeptly handles non-financial data, such as FTE counts, IT desk allocations, or user statistics, to ensure a comprehensive view of Unilever's operational landscape.
Digital Twin Technology
A standout feature of Intercompany® is its implementation of digital twin technology. This innovative approach involves creating a virtual replica of Unilever’s data structure, enabling the platform to interact with the data ecosystem as if it were a native component. This mirroring technique not only allows for smooth data integration but also enhances the accuracy and efficiency of data processing, ensuring that the digital twin behaves and evolves in tandem with the actual enterprise system.
Rule-Based Transfer Pricing Operations
Post ingestion, Intercompany® applies a sophisticated rule-based system to translate the raw data into meaningful insights. This system is finely tuned to navigate the complexities of Transfer Pricing operations, streamlining reporting and compliance tasks. By leveraging these rules, Intercompany® efficiently translates complex datasets into strategic information, empowering Unilever with the tools to ensure precision, compliance, and optimization in Transfer Pricing endeavours.
