Powering Global Intercompany Excellence for a Semiconductor Leader
Executive Summary
A global semiconductor powerhouse sought a transformative solution to address a key business imperative: enabling tiered intercompany transactions within their Oracle EBS ERP system. This was essential for their international tax strategy and compliance with multi-country trade and accounting laws—a functionality not available in Oracle’s standard offerings.
Alphanet stepped up to develop a bespoke intercompany solution, gaining rare approval from Oracle for this unprecedented customization. This solution seamlessly captured multi-tier transactional data, enforced trade compliance, and enabled documentation workflows and financial relevance across jurisdictions.
The result: A breakthrough that set new industry benchmarks, reduced system latency, increased process transparency, and helped the client unlock $25M+ in tax savings—all while maintaining ERP integrity and scalability.
Client Background
The client is a global leader in semiconductor, testing and measurement technologies, serving top chip manufacturers worldwide. Their offerings span probe cards, analytical probes, cryogenic testing systems, and quantum-ready solutions—playing a critical role in optimizing integrated circuit performance and reliability.
Their commitment to innovation makes them a strategic partner in industries ranging from consumer electronics to cutting-edge quantum computing.
Business Challenge
Deploying an effective intercompany solution for transfer pricing and tiered inventory movements is one of the most complex areas in ERP and finance. The client’s challenges included:
- Absence of middle-tier invoicing and profit recognition in Oracle’s native functionality
- Inability to capture accurate trade and tax documentation across geographies
- Complex financial and statutory accounting requirements not supported by out-of-the-box ERP solutions
- Risks in compliance, audit-readiness, and transfer pricing misalignment
- Manual reconciliation processes leading to inefficiencies in financial reporting
The existing systems simply could not support the multi-country tax strategy needed to optimize global operations.
Solution Overview
Alphanet delivered a custom end-to-end Intercompany Transaction Engine built natively into Oracle EBS. This tailor-made solution included:
Key Functional Enhancements:
- Custom utilization of Oracle Intercompany and Transfer Pricing APIs
- Use of Descriptive Flexfields for capturing master data across geographies
- Development of custom intercompany reconciliation reports using Oracle Reports
- Multi-currency ledger setups with chart of accounts qualifiers
- Integrated trade documentation workflows
- Automated accounting for Profit on Inventory Transfers
Strategic Planning & Architecture:
- End-to-end requirement gathering and business alignment
- Future-ready architecture with scalability, high availability, and security at the core
- Evaluation of technology options for performance and cost optimization
Development & Integration:
- Full lifecycle development including SIT, UAT, and cutover planning
- Seamless integration with internal platforms, APIs, and compliance systems
- Real-time data validation and reconciliation automation
This powerful solution was not just a technical achievement—it became a cornerstone of the client’s global tax strategy.
Implementation Process
Alphanet team executed the project using a highly collaborative and agile methodology:
- Discovery & Scoping – Worked closely with finance, tax, and IT stakeholders to define global business rules
- Design & Prototyping – Developed system architecture and workflows customized for global intercompany operations
- Development & Testing – Iterative sprints with robust SIT/UAT to validate business scenarios
- Integration & Cutover – Integrated seamlessly into Oracle EBS with parallel testing and phased go-lives
- Training & Support – Enabled business users across geographies to adopt the solution with minimal disruption
Backed by a dedicated cross-functional team, the project was delivered on time and exceeded performance expectations.
Results and Impact
Alphanet’s custom ERP solution delivered immediate and measurable results:
Operational Outcomes:
- Accurate, auditable intercompany trade and tax documentation
- Fully automated financial accounting and statutory reporting
- Streamlined trade compliance across global locations
- Period-end close cycles reduced dramatically
Financial Benefits:
- Over $25 million in tax savings realized through optimized transfer pricing
- Improved cost transparency and accurate profit booking at each transaction level
User Engagement:
- Broad adoption by teams in finance, FP&A, taxation, and compliance
- Executive dashboards now support real-time decision-making
Looking Ahead
With this foundational solution in place, Alphanet continues to partner with the client to drive the next wave of innovation—including enhancements to user interfaces, expanding the solution to new jurisdictions, and integrating emerging technologies like AI-driven compliance checks.