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Hello Wilson,
Here is an attempt to reply to you're note, re: Canadian decisions.
> I understand TPAS doesn't store price history. Also, according to
> Eamonn, Canada was once considering similar approach but dropped the
> requirement later. Hi Canada! If you are on-line, could you please
> provide me some detail about your decision? Are there any other
> audiences considering storing MTP history? If we have sufficient forum,
> it may be more cost efficient (corporate wide) to have it centralised.
We had originally looked at the option of a monthly mass update of
transfer prices on our current price file, from TPAS. Currently, transfer
price is a field calculated monthly on our price file, based on MLP. As
a given process needs a transfer price, we would extract the value from
our price file. A monthly update of our price files transfer pricing from
TPAS, would fit in well with our existing systems. As you note however, this
type of update would also be about 50 HRs processing each month-end.
What we found though, was that over the course of a given month, the
number of transactions requiring a transfer price, was much less than
attempting to revalue our entire price file, and the transactions would be
spread out through the month (with the exception of inventory). So, we
opted to call TPAS as needed, instead of a mass price file update. I could
forward you a feasibility study performed here if you would like additional
details. Note, retaining historical transfer price has not been an issue
in the study or with subsequent analysis.
It is true, that we loose a current capability of previous 2 months transfer
price values, which we now maintained on our price file. This is somewhat
compensated for, by the fact that our inventory files are accumulated in YTD
on our Data Warehouse. At this point, It does not appear to be a requirement
to maintain history beyond the warehouse inventory file.
Not sure whether this helps you, but that's the approach we are looking at
using.
Thanks, Bob Cameron
Canadian/IM&T/Finance
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| Hi Bob,
Thank you for your helpful reply. Your situation of getting the
appropriate pricing details from data warehouse seems to be a similar
scenario for us too. We may have to modify it to extend a few more
details though.
Regards,
Wilson
SPT IM&T
PS: I don't mind having your feasibility study report. There may be
additional information that may help us finalising the detail. Thank.
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