Entity-Level Financial Impact of Intercompany Transactions
The IC Tool models the standalone financial impact of intercompany transactions on each legal entity using accounting-based data.
The tool integrates profit and loss and balance sheet effects, allowing users to assess how intercompany pricing influences both entity-level profitability and financial position, including liquidity and capital metrics, once intercompany charges are applied.
What the IC Tool does?
✔ Imports issued intercompany transactions from accounting or ERP extracts
✔ Applies calculated intercompany charges to each legal entity
✔ Reflects intercompany pricing in revenues, costs, and financial position
✔ Produces entity-level financial views incorporating intercompany pricing outcomes
All calculations are performed using the same dataset and logic that drive the intercompany pricing engine, ensuring consistency across income statement and balance sheet analysis.
Built for scaleups... used by:
& others
Entity-Level Financial views produced by iC Tool
The IC Tool generates structured entity-level outputs which allow users to monitor how intercompany pricing affects profitability and financial position at the legal-entity level.
- Standalone P&Ls and balance sheets after intercompany pricing
- Entity-level margins reflecting intercompany outcomes
- Period-on-period comparability of entity financial performance and financial position
Uses in regulated and capital-sensitive businesses
For regulated groups and capital-sensitive sectors, such as fintechs and financial services businesses, entity-level financial outcomes directly influence regulatory and capital requirements. IC Tool supports these analyses by:
Enabling monitoring of post-intercompany profitability at legal-entity level
Helps users identify inconsistencies early, validate pricing logic, and ensure issued charges align with policy, reducing disputes, rework, and downstream adjustments during close.
Visibility over balance sheet movements relevant for liquidity analysis
Enables users to pinpoint where differences arise, prioritise investigations, and focus effort on high-risk relationships, improving efficiency and accountability across the group.
Assessment of capital adequacy metrics driven by entity-level results
Allows users to correct pricing errors, protect margins, ensure arm’s-length outcomes, and maintain consistency with transfer pricing and internal policies.
Consistent accounting-based dataset for internal capital planning
This supports accurate postings, faster period close, and audit-ready records by clearly showing what needs to be corrected and where.