Intercompany Calculation Tool For Startups & Scaleups
As a business expands, the increasing number of transactions and related entities creates the need for automated transfer pricing solutions. iVC supports some of the fastest growing businesses in intercompany billing process though an automated solution for intercompany calculations. Specifically designed to:
✔ Map ERP data to transfer pricing (TP) policy
✔ Automate intercompany invoice calculations
✔ Provide an audit trail to stakeholders
✔ Model post TP standalone entity accounts
✔ Calculate high-level tax exposure
✔ And more...
Go live in 2 - 3 weeks.
Built for scaleups... used by:
& others
The Benefits of Intercompany Calculation
Automated transaction calculation & checks
Automates intercompany calculations. Define the inputs andthe final invoice numbers are ready in a minute's time. The automated approach standardises the invoicing process and eliminates manual errors. The tool's built-in error checks automatically flag discrepancies, ensuring accuracy and consistency in calculations
Compliance & regulatory alignment
Ensures compliance with GAAP, IFR, and transfer pricing regulations. Automating documentation, reducing audit risks and penalties while maintaining tax and reporting accuracy.
Enhanced financial visibility & reporting
Provides full transparency on the calculation of the intercompany transactions. The intercompany calculation tool outlines each step, from raw accounting data to the final invoice amounts, ensuring a proper audit trail .
Seamless onboarding
Effortless setup with no need for additional finance team resources. The intercompany calculation tool is designed for quick and easy adoption, allowing your team to start automating intercompany calculations without extra investment in training or new software.
Increased operational efficiency
Replaces manual calculation time, streamlining intercompany invoicing. What our clients were doing for a week, they can now do in a couple of hours. Allowing finance teams to focus on what's important.
Scalability for growth & expansion
Supports business growth, acquisitions, and multi-entity operations. Enables the integration of additional entities and transactions. Ensures seamless adaptation to evolving business needs without disrupting existing financial and accounting processes.
Powerful Excel based iC Tools
Everyone in finance uses EXCEL as the foundation of their work. We've built our intercompany calculation tool to work within EXCEL, using the following framework.
Intercompany calculation tool inputs
Takes readily available ERP data on entities, costs, salaries, and inputs from the group's transfer pricing policy. Defines allocation rules, ensuring compliance with tax and accounting regulations. Provides a structured framework for intercompany cost-mapping and revenue distribution.
Smart Intercompany calculations
Automatically allocates costs
and revenues to related party transactions. Apply arm's length pricing under the TP policies to calculate the transactions on each entity level. It breaks down the application of the transfer pricing policy and crosschecks the input data and calculations at each step.
Intercompany calculation tool outputs
Generates intercompany invoices, ensuring correct amounts, currency conversions, and tax compliance. Provides audit-ready documentation, streamlines reconciliation, and ensures accurate financial reporting for consolidated statements.
Integrations with ERP (e.g. Netstuite
Integrate with your ERP to empower better decision making and ensure seamless data transparency across platforms.
Cost-Based intercompany transactions (Expense allocation)
- Marketing services (global advertising campaigns allocated to subsidiaries)
- Sales support services (e.g., customer service, lead generation, sales training, CRM management)
- Distribution services (distribution centre expenses, warehousing fees)
- Software development services (internal IT services provided across entities)
- Shared service costs (e.g., HR, IT, legal, finance, administrative support)
- Management services (e.g., strategic oversight, executive management, financial planning, risk management, corporate governance)
Revenue-based Intercompany Transactions (intragroup sales & royalties)
- Software licensing (intellectual property charges for patents, trademarks, or know-how)
- Trademark licensing (use of brand names, patents, or proprietary technology)
- Commission income (e.g., sales commissions earned by one entity for selling on behalf of another group entity)
- Payment processing (e.g. commission for payment transfers)
Other Intercompany Transactions
- Profit split arrangements (allocating profits based on contribution to a global business model)
- Cost contribution arrangements (CCAs) (joint investment in shared R&D or marketing projects)
- Cost-sharing models (shifting functions between entities)
- Financing transactions (intercompany loans, guarantees, treasury management)
Additional add-on modules and maintenance are available
depending on the size and needs of the client. The additional
offering includes:
- Currency & Tax Management
- Financial impact modelling
- Capital adequacy calculations
- Periodic reconciliation
- Output file for you accounting software
- Dedicated account manager for ongoing support
- Supplemental guidance to external stakeholders on invoicing impact on financial statements (e.g. audit support)
Book iC Tool demo
Managing intercompany transactions across multiple entities can be complex, time-consuming, and error-prone. Our Intercompany calculation tool automates cost allocations, revenue distributions, invoicing and compliance ensuring accurate financial reporting and seamless reconciliation.
✔ Automate and speed up transaction calculations
✔ Help with Transfer Pricing compliance
✔ Register an audit trail
✔ Gain inputs for financial planning
✔ Scale with your business
✔ Seamless onboarding
The team at iVC Consulting is young but nevertheless very experienced and knowledgeable. They quickly obtained a good understanding of our quite complex global structure and resulting needs in relation to a global transfer pricing policy. They approached the problem as if they were internal employees of Docplanner - in a very pragmatic and efficient way. I was also impressed by their modeling skills. Highly recommend, especially for high-growth tech companies.
Peter Bialo
CFO and Board Member
IC Tool frequently asked questions
An Intercompany (IC) Tool automates intercompany transactions, transfer pricing, financial consolidation, and compliance across multiple entities. It streamlines invoicing, reconciliation, tax compliance, and reporting, reducing manual work, improving accuracy, and ensuring global tax and regulatory compliance.
Companies with multiple entities—especially multinational corporations, SaaS providers, consultancies, marketing agencies, manufacturers, and e-commerce businesses—use IC tools to automate and manage intercompany processes, ensuring compliance and improving efficiency across jurisdictions.
Automating intercompany invoicing helps eliminate manual errors, mismatches, and compliance risks. It reduces time spent on reconciliation and ensures that transactions are accurately recorded, improving audit readiness and internal transparency.
Manual calculations are error-prone, inconsistent, and resource-heavy. This tool ensures real-time accuracy, automated updates, audit trails, and scalability, helping you focus on strategic finance tasks instead of admin-heavy processes.
While integrated transfer pricing modules in ERP systems offer built-in solutions, they often come with high costs, limited flexibility, and complex implementation. The IC Tool provides a more agile, cost-effective, and user-friendly alternative.
The tool handles cost allocations, markups, transfer pricing adjustments, FX conversions, shared service charges, and more. Calculations are configurable, ensuring accurate reporting across diverse accounting and tax frameworks.
Our IC tool supports 100+ jurisdictions worldwide, enabling compliance with local tax, transfer pricing, and regulatory standards. It adapts to changing rules and allows seamless country-by-country reporting and localisation.
Yes. You can track every transaction, change, and approval with a full audit trail. The system provides automated reconciliation, documentation, and reporting, helping meet audit, tax, and compliance standards with minimal manual work.
We provide onboarding assistance, account manager, documentation, audit support and customer support to ensure a smooth transition and ongoing collaboration.
Absolutely. We offer a guided product demo where our team walks you through features tailored to your company’s structure. You’ll see how the tool handles real-world intercompany workflows and answers your team's specific questions.
It depends on complexity of your transfer pricing structure, but it is significantly cheaper than any other transfer pricing automation solution.