It is very difficult for companies with various business units to evaluate and establish their prices and margins across the distribution chain, appropriately considering the effects of Brazil’s complex tax structure.
Factories transferring or selling to distribution centers in different states, or factories transferring or selling to franchises, which in turn sell to the end consumer – These are very complex processes when it comes to pricing and raise the following questions:
What are the margins at each step in the distribution chain?
What is the best formula to lower taxes?
How can impacts on revenues and margins for various alternatives be simulated?
Multiply this by several sales channels, dozens of states and thousands of end customers.
There are many thousands of pricing tables that need to be consistently calculated, quickly simulated and securely uploaded into the billing system.
CTI designs and implements customized systems to meet these needs of generating and simulating pricing tables. They are customized because:
- Your tax and fiscal benefits structure is custom-modeled to serve the specific characteristics of your business model.
- Calculation speed and agility allow profitability simulation across distribution chain by several dimensions: Products/Lines, Sales channels, Geographic regions, Business units, sales structures and by Customer.
- Pricing tables generated can be automatically loaded on your ERP billing module (whether it is SAP or a different system) .
This and many other conveniences, within a development methodology where criteria for calculating taxes and transfer prices are thoroughly discussed, re-discussed and compared with the best practices in the market by consultants with accounting and fiscal know-how, and who also possess large experience with the highly complex situations experienced by other clients.
Companies with several units or that need to transfer items to other States have difficulty in pricing. But we can help: