Better PMO: SAP- Optimize company’s effective tax rate - Principal Centric Accounting

If the reason of a business model change is to optimize company’s effective tax rate or cost reduction or to realize efficiency overall such as standardizing business processes, it is important that with regard to managing such change, I strongly encourage you to evaluate the potential "Loss of Business" from moving forward with such a Principal Centric Accounting and Data Model. If losing an international portion of your business will not have a big impact on your ability to compete domestically, then this might be the wisest choice in the near term. However, in my experience working with multinational clients from a business readiness perspective, you will always find the risk of totally blowing the deal is pretty high, especially if you don't get local foreign affiliate representatives involved early on. Invariably, despite thorough education and global travel experience, one can still make some kind of small, nuanced goof in dealing with the external end customer. 

Wresting "control" of the revenue collection from "independent" or even "exclusive" foreign allied agents is likely to mean a much greater loss to them, than it is to be a gain for you. The resulting channel "noise" could cause a ton of additional cost in the form of opportunity costs and loss of focus in the short term and, if the business communication plan is not thoroughly and thoughtfully assembled with the help of some of your leading Channel Partners, may result in significant damage to the global brand value. Even if the foreign affiliate doesn't mind having a direct billing system, most are unlikely to appreciate earning just a "commission" that is determined by a combination of revenue and treasury considerations.

Exchange cost "risk" should be built into such a commission rate and the commission should be based either on their revenue, or more appropriately on their Gross Margin. Making it overly complex is not going to drive good behavior, and will only create suspicion.

If you still want to head in the Direct Bill direction, consider paying long-term, high-volume foreign allied sales representatives a "Buy-out" fee. These people have put blood, sweat, tears and equity into getting you business and they deserve some kind of "equity" stake from creating and maintaining something that did not exist before they came to represent you. If you don't treat them with respect and dignity, be prepared for an indignant and acrimonious transition to your new model.

For this kind of significant change, if you are part of the team responsible for designing the business strategy I encourage you to consider both from the Business Readiness Global Communications perspective and from the small business foreign allied representative perspectives. If you don't consider for both, then plan that a good number will quit and take or direct your customers elsewhere.