Intercompany Invoice Calculation & Transfer Pricing Engine
The IC Tool is an accounting-based intercompany calculation tool that automates the calculation of intercompany charges using financial data uploaded directly from a group’s ERP or management reporting system.
The tool is designed to transform entity-level accounting data into structured, user-friendly intercompany invoices outputs based on predefined transfer pricing policy.
What the IC Tool does?
✔ Imports entity-level P&L/GL data via standardised Excel uploads;
✔ Maps accounting data to predefined cost centres and intercompany transaction categories;
✔ Applies the transfer pricing policy consistently across all relevant entities;
✔ Calculates intercompany charges for the selected accounting period.
For many finance teams, Excel functions as the environment where accounting data is transformed into actionable financial outputs.
Built for scaleups... used by:
& others
Intercompany transaction types supported
The IC Tool produces clear, auditable calculation outputs designed to support complex intercompany processes. It breaks down results by entity, transaction type, and accounting impact, enabling finance teams to understand drivers, validate assumptions, and reconcile positions with confidence.
Outputs are structured, repeatable, and ready for review, reducing manual effort and improving transparency across the group.
- 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.)
Intercompany transaction types supported
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Intercompany invoices
Clear visibility of intercompany invoice flows between sending and receiving entities.
Amounts are calculated consistently and presented by counterparty, enabling reconciliation, audit support, and alignment between group and local records while reducing manual analysis and dispute risk.
Standalone P&L
A standalone view of profit and balance sheet positions before and after intercompany activity.
This highlights how IC transactions affect performance, assets, and liabilities, helping finance teams understand value creation, assess impacts, and support reporting with confidence.
VAT positions
Accurate calculation of VAT positions following intercompany transactions calculation.
The output identifies recoverable VAT, irrecoverable leakage, and mismatches across entities, supporting compliance, improving transparency, and enabling targeted actions to reduce VAT inefficiencies.