WEBVTT 1 00:00:02.000 --> 00:00:09.218 Allocations and Transfer Pricing in CCH Tagetik. The CCH Tagetik's built-in allocation engine allows to distribute 2 00:00:09.219 --> 00:00:18.437 and assign pool resources to multiple recipients based on both financial or statistical drivers according to either a flat or multi-level 3 00:00:18.438 --> 00:00:27.656 waterfall structure, to determine profitability by customer, product, lines of business and any other required dimension or, 4 00:00:27.657 --> 00:00:38.500 in case of multi-entity corporations, to meet transfer pricing requirements with the application marks-ups to respond to regulatory, management or text reporting requirements. 5 00:00:38.501 --> 00:00:46.094 Let's take a look. Leveraging the familiar Excel look and feel either on your desktop workstation or mobile device, 6 00:00:46.095 --> 00:00:55.313 it is possible to analyze each step of your multi-level allocation process. In the first step of our model, we're taking into consideration a very 7 00:00:55.314 --> 00:01:05.532 simple departmental allocation where specific departments, such as aircraft expenses, have been fully allocated out to all of the remaining departments. 8 00:01:05.533 --> 00:01:13.751 To access the details of any of these allocation rules, it's as easy as clicking on the number to understand and gain full auditability in terms of 9 00:01:13.752 --> 00:01:22.970 numerator, denominator and even the driver percentage that was used to allocate this specific example. In the second step of this allocation model 10 00:01:22.971 --> 00:01:32.189 we're taking into consideration how much of these departmental expenses will stay within the US headquarter or maybe based on a specific stewardship percentage, 11 00:01:32.190 --> 00:01:41.408 will be allocated to the European headquarter or any other receiving entity. The last step of our allocation model takes into consideration the application 12 00:01:41.409 --> 00:01:50.616 of some transfer price modeling where each entity will be charged departmental expenses based on the application of specific markups. 13 00:01:51.988 --> 00:02:01.918 To quickly understand the effort required to set up an allocation and transfer price model in CCH Tagetik, finance power users can leverage our point and click configurable engine 14 00:02:01.919 --> 00:02:11.848 to define their sending dimensionality, the application of any markup, also the use of what driver, and where to allocate.