case study

Aibidia helps Fortum’s global tax team transform their transfer pricing processes

speaker
Borys Ulanenko

Electricity

Industry

Finland

HQ

100+ Globally

Legal Entities

2000

Size

$ 93.69B (As of 2021)

Revenue

What is crucial for a consistent transfer pricing process in a multinational enterprise? According to Dominik Bielecki, the title, it’s all about centralization and control.  


“The biggest challenge for our tax team was the issue of transactional data and the lack of oversight across various legal entities and jurisdictions,” Dominik says.  


That’s why Fortum’s global tax team relies on the Aibidia platform – a single source of truth - to enable healthy global business. The platform automates transfer pricing processes centralizes data and transforms it into meaningful insights, helping shape Fortum’s transfer pricing strategies and processes across different jurisdictions and entities.  


It’s clear that Fortum, one of Europe’s leading electricity producers, is getting many things right: Its customer base is growing and includes more than 2.4 million customers across Europe.

We were eager to find out how Fortum’s global tax team uses Aibidia to automate transfer pricing processes, so we chatted with their global tax team to learn how they use Aibidia to add value to their company.

Dominik Bielecki
Fortum

"Before Aibidia, our process was manual, resulting in low data quality. With Aibidia in place, we’ve saved time and improved transparency among stakeholders and entities.”

From decentralized processes to a single source of truth

Decentralization was an issue with “each country having its own set of rules and methods of creating local files,” says Dominik.

This approach resulted in various transfer pricing strategies and inefficient processes throughout the company. It required individual reviews for all of the country’s internal transactions – only after the year ended – by requesting data from different individuals and departments, which resulted in hundreds of emails and even more Excel spreadsheets.

It’s not surprising that the global tax team struggled to maintain control. Dominik emphasized issues with transactional data and the lack of oversight.

Data quality was also another challenge. It quickly became a pain point for all stakeholders, including business controllers.

The good news in all of this? These challenges served as a catalyst for a single platform that would not only centralize data but also help Fortum save costs, time, and improve company-wide transparency.

“Aibidia is the only company that has taken a serious and sophisticated approach to transactional data. It focuses on efficiently transforming the data and making it useful to us. Plus, the interconnectivity between transactional data and the creation of local files is a core part of Aibidia,” says Dominik. 


What’s even better is that with the help of transfer pricing policy automation in Aibidia, the Fortum team now have on-demand access to data across any legal entity, without having to ask for ad-hoc, scattered data reporting on an individual basis.

What is crucial for a consistent transfer pricing process in a multinational enterprise? According to Dominik Bielecki, the title, it’s all about centralization and control.

“The biggest challenge for our tax team was the issue of transactional data and the lack of oversight across various legal entities and jurisdictions,” Dominik says.

That’s why Fortum’s global tax team relies on the Aibidia platform – a single source of truth - to enable healthy global business. The platform automates transfer pricing processes centralizes data and transforms it into meaningful insights, helping shape Fortum’s transfer pricing strategies and processes across different jurisdictions and entities.

It’s clear that Fortum, one of Europe’s leading electricity producers, is getting many things right: Its customer base is growing and includes more than 2.4 million customers across Europe.

We were eager to find out how Fortum’s global tax team uses Aibidia to automate transfer pricing processes, so we chatted with their global tax team to learn how they use Aibidia to add value to  their company.

And with Aibidia in place, Fortum can:

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Easily produce local files without additional costs

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Gain a clear overview of all transactions, at any given time

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Consistently describe transfer pricing policies across different countries

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Have a centralized way to communicate with all stakeholders

Aibidia has transformed how we manage our Transfer Pricing. Instead of manually creating 127 local files each tax year, it’s now automated at the click of a button.

Hailey Roberts Lightbox Co

What’s even better is that with the help of transfer pricing polic automation in Aibidia, the Fortum team now have on-demand access to data across any legal entity, without having to ask for ad-hoc, scattered data reporting on an individual basis.

Achieving 65% automation in transfer pricing processes in just one year

Fortum implemented the Aibidia platform to centralize data management using Aibidia Data Studio, prepare Local and Master files with Aibidia TPDoc, and access Aibidia benchmarking studies. The solution is now in its full implementation phase for an additional 80 legal entities.  


With Aibidia Data Studio, custom workflows are built to enable the transformation of transactional data into a single categorized format. In Fortum’s case, Aibidia Data Studio was used to import the raw transactional data into a centralized workflow, which was then used in Aibidia TPDoc.  


“Typically, we upload the transaction data through Aibidia Data Studio and then synchronize it so that all the information is brought directly into our local files,” says Dominik.

Aibidia is assisting Fortum in streamlining the entire transfer pricing management process, from creating local files to data management to benchmarking studies. This collaboration is also reducing the company’s dependence on external advisors for local file preparation.

“When it comes to local files,” Dominik adds that” limiting the use of external advisors to review rather than preparation has significantly reduced our costs.”

Aibidia TPDoc not only automates the preparation of local and master files but also ensures tax compliance and provides valuable transfer pricing risk insights for informed strategic decisions throughout the year.

“We haven’t automated everything yet, but in just one year, we have achieved a 65% automation rate for accounts – and it’s only going to increase,” claims Dominik. “It’s a big improvement.”

A proactive approach to managing transfer pricing

Dominik highlights Fortum’s primary use of Aibidia – creating local files more efficiently. The company plans to expand its usage to include additional legal entities and minimize reliance on external parties.


The company’s goal “is to fully utilize Aibidia and not use external parties for preparation of local files anymore, only reviews. It will allow us to create documents in a standardized way that can be submitted to the tax authorities easily.”

On top of that, Dominic has had a positive experience working with Aibidia. He believes that Aibidia’s team is responsible and agile when it comes to listening to feedback.

And when it comes to the platform itself, Dominik describes the Aibidia platform as “a great product that has already had a significant impact. For people with similar challenges, I would highly recommend it.”

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