Intercompany Invoice Calculation & Transfer Pricing Engine

The IC Tool is an accounting-based intercompany calculation and transfer pricing engine designed to automate end-to-end intercompany charge calculations. It uses ERP or management reporting data to produce consistent, auditable intercompany invoice outputs aligned with predefined transfer pricing policies, supporting standardisation, stronger control, and repeatable application across periods and entities. 

What the IC Tool does?

Importing entity-level P&L and general ledger data

Mapping accounting data to predefined structures

Applying transfer pricing policies and markup logic

Calculating intercompany charges for selected periods

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Built for scaleups... used by:

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& others

Intercompany transaction types supported 

The IC Tool can be configured to calculate a broad range of intercompany transaction types using dedicated, transaction-specific logic, while relying on a single, consistent financial dataset to ensure methodological consistency and flexibility across different pricing arrangements, helping groups apply multiple charging mechanisms within one framework and maintain comparable outcomes across entities. 

  • Cost-plus pricing models (e.g. management services, business support services, etc.) 
  • Cost recharges 
  • Margin-based pricing structures 
  • Licensing of IP based on royalties (e.g. software licensing, trademark licensing, etc.) 
  • Other intercompany charging mechanisms (e.g. cost contribution arrangements, profit split, etc.) 
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Intercompany transaction types supported 

The IC Tool can be configured to calculate a broad range of intercompany transaction types using dedicated, transaction-specific logic, while relying on a single, consistent financial dataset to ensure methodological consistency and flexibility across different pricing arrangements, helping groups apply multiple charging mechanisms within one framework and maintain comparable outcomes across entities. 

Cost-plus pricing models

including management services, shared service centres, and business support services charged on a cost base plus an arm’s length markup. 

Cost recharges

covering direct and indirect cost allocations across entities, including central and shared function costs. 

Margin-based pricing structures

where intercompany pricing is driven by target margins or profitability benchmarks. 

Licensing of intellectual property

including royalty-based arrangements for software, trademarks, and other IP assets. 

Other intercompany charging mechanisms

such as cost contribution arrangements, profit split methodologies, or hybrid pricing models. 

Compare transfer pricing options

Manual calculations vs iVC (Excel IC Tool) vs Enterprise ERP — at a glance.

# Feature Manual Recommended iVC (Excel IC Tool) Enterprise ERP
1 Price £ £££
2 Time to launch (setup complexity) Medium Long setup
3 Results speed Manual effort Fast
4 Dedicated account manager No Available
5 Accuracy Low High
6 Transparency Full Black-box logic
7 Customisability Fully customisable Low
8 Audit trail Low Low
9 Financial impact No Available
10 Automatic reconciliation No No
11 TP consultancy add-on No Software only
12 Best for Startups, <2 entities Large firms (€1b+ revenue, 50+ entities)

Manual

Baseline option

Price
£
Time to launch
Medium
Results speed
Manual effort
Account manager
No
Accuracy
Low
Transparency
Full
Customisability
Fully customisable
Audit trail
Low
Financial impact
No
Auto reconciliation
No
TP consultancy add-on
No
Best for
Startups, <2 entities

Enterprise ERP

Enterprise platform

Price
£££
Time to launch
Long setup
Results speed
Fast
Account manager
Available
Accuracy
High
Transparency
Black-box logic
Customisability
Low
Audit trail
Low
Financial impact
Available
Auto reconciliation
No
TP consultancy add-on
Software only
Best for
Large firms (€1b+ revenue, 50+ entities)

Typical IC TOol Use Cases

The IC Tool is typically used to support recurring intercompany pricing, invoicing, and review activities across accounting periods, jurisdictions, and entities, ensuring alignment between accounting data, transfer pricing policy, and operational execution, while improving efficiency, strengthening controls, and enabling consistent oversight of pricing outcomes and supporting documentation across the group. 

Monthly or quarterly intercompany invoice calculations

Performed consistently across multiple entities and jurisdictions using updated financial inputs. 

Year-end intercompany true-ups and adjustments

Aligning actual results with transfer pricing policy and arm’s length outcomes. 

Preparation of intercompany accounting entries

Including supporting documentation for accounting close and audit purposes. 

Internal review and scenario analysis

Enabling tax, finance, and controllership teams to validate intercompany pricing outcomes. 


Intercompany Calculation Outputs

The IC Tool produces structured and clearly defined outputs to support invoicing, accounting, tax, and reporting processes, with full traceability to underlying data and calculation logic to support auditability and internal review, enabling users to reconcile results back to source financial inputs, maintain documentation, and support consistent downstream processing across reporting cycles. 

Intercompany invoice amounts by entity, showing sending and receiving positions suitable for direct use in invoicing and accounting processes. 

Standalone P&L and balance sheet impacts, showing entity-level financial positions before and after intercompany transactions. 

VAT positions and potential VAT leakage, supporting indirect tax analysis, compliance, and alignment with intercompany pricing outcomes.

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