What are some tools you use to manage intercompany transactions with a focus on transfer pricing policies/service recharges? Examples include calculating and monitoring group allocations, trademark/tradename royalties, and other types of intercompany recharges.
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India Head and Director of Global Finance Shared Services in Hardwarea year ago
We manage intercompany transactions through a combination of Coupa and ERP Application SAP. The transfer pricing rates have been built into SAP to bill Intercompany transactions at predefined rates. We have created 2 HUB entities structure one for the US and other one for all international entities. These HUB entities also charge administrative charges to route transactions. Director of Finance in Consumer Goodsa year ago
We ensure that transactions are recorded as per Arm's length price as per International transfer pricing policies. We use ICNPA and GLSU to pass the intercompany transactions through SAP and blackline.VP of Financea year ago
Hi all- I'm the controller of a tech company that has significant interco transactions due to transfer pricing. Our policy is quiet sophisticated as requires different mark ups (which can change frequently) based on various costs (for instance sales support mark up differs vs. R&D etc). We've struggled to find a good tool to automate our processes and are now consider Alteryx for modeling and blackline for billing/settlement. I'd love to have a conversation with anyone else that might be experiencing similar challenges. Thanks, GiancarloDirector of Finance in Manufacturing8 months ago
Certainly, for intercompany transactions, you can have a policy independent of a tool. Currently, we use Oracle amid several systems. We've embarked on a significant transformation project to transition from our 50-some ERP systems solely to Oracle Cloud. One tool we employ, even now, is Virtual Trader. It assists with payments for intercompany invoicing and facilitates netting, particularly across systems. However, consistency in data is paramount for any tool. For intercompany processes and policies, we encounter issues with varying part numbers, for instance. One system may identify a part differently from another, necessitating a cross-reference, which is challenging and time-consuming to establish.Moreover, as we delve into the process, proposed changes in one system can disrupt everything. Therefore, with intercompany matters, it's critical to consider the entire chain and its logic. This principle holds whether the procedures are manual or system driven. It's about the data and ensuring adherence to processes. Factors like having the correct invoice number are crucial. For international transactions, the type of invoice matters. Consistency is key; without it, the process falters, leading to a labor-intensive reconciliation effort.
Global Capital Accounting Director in Consumer Goods8 months ago
We have some corporate guidelines in some spaces that bring more consistency to the processes. We have a dedicated team that works in group allocation for example, and also a robust team working on executing transactional intercompany work. In terms of tools, we have management reporting tools that enable these costs to be recharged and managed by our businesses when actual invoicing is not necessary.