Intercompany is over 60% of World Trade

bananas_pajamas.jpg

As Intercompany is the area I focus on in my work in Oracle Financials Developemt, I was interested to see a comment in an article in The Guardian (UK Newspaper) which stated:

“Over 60% of international trade now takes place between subsidiaries within transnational groups, according to the OECD.”

Maybe that is why I feel so busy all the time!

The article is coming from a particular political point of view, which you may or may not subscribe to but regardless of that aspect, it does a nice job of highlighting the complex financial implications of a multinational selling bananas. It also makes reference to some of the problems companies have had when the tax authorities deemed they had not paid enough tax, this is the very reason it is important to track carefully the intercompany transactions and transfer pricing – the tax authorities will want to keep a very close eye on it and the consequences of getting wrong can be serious (ie. expensive).

Author: David Haimes

I'm Senior Director in the Oracle Research and Development Organization, with close to 20 years working in various roles on the development of the Financial Management product suite.  Since the summer of 2016 my focus is exclusively on working with customers and longer-term design work, particularly around next-generation functional and technical architecture. My task is to figure out NOW what the financial management system of the next 3, 5 or more years should look like and start working toward it.  At the moment the majority of my time is spent working on Blockchain or Distributed Ledger Technologies (DLT), leading the effort for all of SaaS applications.  I'm also interested in AI, Machine Learning and new UX and interaction paradigms such as chat bots. I started out in Oracle UK and found my way out to Oracle's Redwood Shores, California HQ in May 2000.  My previous role was product owner for Fusion Accounting Hub, General Ledger, Intercompany and Legal Entity products in Oracle Fusion Financials and eBusiness Suite General Ledger. I have also worked on EMEA Globalizations, Federal and Public Sector Financials, XML Payments and a variety of projects on other products down the years.

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