Let’s now try doing functional analysis. Here, we can assess and understand various roles and processes within a Distribution Company, ensuring that each function effectively supports the organization’s missions and goals. However, this functionality may not be tailored for transfer pricing.
To make functional analysis more relevant for transit pricing, we need to add more transfer pricing context. By customizing the analysis, we can expand certain functions and analyze the other side of the transaction as well. However, customization is limited to a context window, and the result may vary each time.
To address this limitation, a specialized AI tool called ARM Thanks AI Platform is recommended for transit pricing professionals. This tool solves most of the issues discussed so far. It generates a customized function analysis based on key parameters such as entity names, profiles, and desired format. The generated analysis can be verified for accuracy.
Unlike ChatGPT, which requires multiple iterations to get a good result, ARM Thanks AI Platform consistently provides high-quality results. It eliminates the need to know how to ask the right questions and ensures consistent formatting and functions. Additional details and a FAR table can be requested for further analysis.
In conclusion, functional analysis is an essential part of transit pricing studies. It lists all the functions, assets, and risks for both sides of the transaction. The analysis also includes entity characterization, assumptions, follow-up questions, and a functional table. This table can be copied to any document and customized as needed.
To experience the benefits of AI in transit pricing projects, subscribe to ARM Thanks AI Platform or book a demo at www.comai.
