IC Tool
Transfer Pricing IC Tool For Startups & Scaleups
As a business expands, the number of intercompany transactions and related entities grows quickly, creating a genuine need for automated transfer pricing solutions. iVC supports fast-growing businesses with intercompany billing through automated software for transfer pricing calculations, compliance, and reporting.
- 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.
INSIDE THE IC TOOL
Six modules, one calculation engine
Turn on only the modules your group actually needs right now. Each module shares the same transparent, Excel-based core and produces a documented audit trail, allowing growing finance teams to add capability as the business expands, without rebuilding calculations or moving to a completely different platform later on.
Intercompany Invoice Calculation & Transfer Pricing Engine
An automated engine that turns raw ERP data into accurate, policy-compliant intercompany invoices, applying your group's transfer pricing methodology consistently across every entity, currency, and reporting period, so finance teams no longer need to rebuild these calculations manually each and every single month.
Entity-Level Financial Impact of Intercompany Transactions
Clear visibility into how intercompany pricing impacts each entity's profit, balance sheet, and capital position, letting finance teams see the downstream effect of every transfer pricing decision well before invoices are issued, so unwanted surprises at year-end close and statutory audit are avoided entirely.
VAT Position & VAT Leakage Analysis
Understand the VAT impact of intercompany pricing and identify hidden VAT leakage across entities, jurisdictions, and transaction types, giving finance and tax teams the visibility they need to correct these exposures early and avoid costly, unexpected VAT liabilities appearing later during audits or reviews.
Automatic Intercompany Accounting Reconciliation
Simplify intercompany close with automated reconciliation, clear variances, and adjustment-ready outputs that flag mismatches between entities well before they reach the general ledger, reducing the manual effort finance teams spend chasing discrepancies at each and every month-end and quarter-end close cycle.
Cost Allocation & Activity-Based Costing
Allocate shared and operational costs across entities and activities with clarity, consistency, and full transparency, using defined drivers and documented rules so every allocation can be traced back to its original source, supporting audits, transfer pricing reviews, and internal management reporting needs.
Hourly Rate & Service Cost Base Calculations
Calculate consistent, cost-based hourly service rates and embed them directly into intercompany pricing, ensuring service charges reflect actual delivery costs across departments and entities, and giving finance teams a defensible, documented basis for every intercompany service invoice raised each and every month.
The benefits of intercompany calculation
Automated transaction calculation & checks
Automates intercompany calculations. Define the inputs and the 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, IFRS, and transfer pricing regulations across every jurisdiction your entities operate in. Automating documentation, reducing audit risks and penalties, while maintaining consistent tax and reporting accuracy, so finance teams spend less time on manual regulatory checks and reviews.
Enhanced financial visibility & reporting
Provides full transparency on the calculation of intercompany transactions. The intercompany calculation tool outlines each step, from raw accounting data to the final invoice amounts, ensuring a proper, well-documented audit trail that stakeholders, auditors and tax authorities can review at any stage of the process.
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, headcount, or new software, so value is realised almost immediately.
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, freeing finance teams to focus on what's important, such as strategic planning, forecasting, and business partnering, rather than repetitive spreadsheet work each month.
Scalability for growth & expansion
Supports business growth, acquisitions, and multi-entity operations. Enables the integration of additional entities and transactions as the group expands into new markets. Ensures seamless adaptation to evolving business needs without disrupting existing financial and accounting processes, structures, or reporting timelines.
HOW IT WORKS
IC Tool Creation Process
Our onboarding process sets the foundation for an effective IC Tool. We work closely with your team to understand your operating model, define cost allocation logic, and standardise data inputs, using clear methodologies, flowcharts, and mappings, ensuring calculations remain transparent, consistent, and fully repeatable.
Preparatory and onboarding work covering the cost allocation framework for intercompany calculation. Summarised methodology set out in flowcharts and tables, with clear mapping of the selected data items, cost lines, and reporting periods. Includes full data standardisation across all in-scope group entities.
Calibrating the IC Tool base model to your group's exact structure. It will process GL data, allocate OPEX, calculate IC charges, and provide the impact of intercompany charges on the Group's entities' PnLs and balance sheets. Delivered alongside a high-level tool process document for your entire finance team.
Monthly invoicing support once the tool is live, including continuous updates to the base model as your group changes, a dedicated account manager, extra coaching for your finance team, and supplemental guidance to external stakeholders such as auditors, tax advisers, and statutory reviewers each reporting period.
POWERFUL EXCEL BASED IC TOOLS
Powerful Excel based iC Tools
Everyone in finance already uses Excel as the foundation of their day-to-day work. We've built our intercompany calculation tool to operate within Excel, using the framework below, so your team can review, audit, and adjust every calculation without learning a new platform or relying on any outside external consultants.
Why Excel Based IC Tooling?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 across every jurisdiction. Provides a structured framework for intercompany cost-mapping and revenue distribution.
Smart Intercompany calculations
Automatically allocates costs and revenues to related party transactions. Applies arm's length pricing under the group's TP policies to calculate the transactions at each entity level. It breaks down the application of the transfer pricing policy and crosschecks the input data and calculations at every single step.
Intercompany calculation tool outputs
Generates intercompany invoices, ensuring correct amounts, currency conversions, and full tax compliance for every entity involved. Provides audit-ready documentation, streamlines reconciliation, and ensures accurate financial reporting for consolidated statements, statutory accounts, and annual year-end audits.
Integrations with ERP (e.g. Netsuite)
Integrate with your ERP system, such as Netsuite, SAP, or Xero, to empower better decision making and ensure seamless data transparency across platforms, removing the need for manual exports, spreadsheet re-keying, and version-control issues between your accounting and transfer pricing processes each single month.
Transactions the IC Tool handles
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 (contract product development 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 product / service)
- Cost contribution arrangements (CCAs) (joint investment in shared R&D or marketing projects)
- Cost-sharing models (synergies 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. These optional extras extend the core tool with additional capability, ongoing support, and reporting outputs tailored to how your group operates, helping the platform continue to fit your business as it scales, adds entities, or enters new markets. The additional offering includes:
Book iC Tool demo
Managing intercompany transactions across multiple entities can be complex, time-consuming, and error-prone. Our transfer pricing tool automates cost allocations, revenue distributions, invoicing, and compliance, helping ensure accurate financial reporting and seamless reconciliation across every entity in your group.
- 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
Frequently asked
IC Tool frequently asked questions
What is an IC tool?+
An Intercompany (IC) Tool automates intercompany transactions, transfer pricing, financial consolidation, and compliance across multiple entities. It streamlines invoicing, reconciliation, and tax reporting, reducing manual work, improving accuracy, and helping finance teams maintain consistent global tax compliance.
Who uses intercompany tools?+
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, currencies, and periods.
Why should I automate intercompany invoicing?+
Automating intercompany invoicing helps eliminate manual errors, mismatches, and compliance risks that arise from spreadsheet-based processes. It reduces time spent on reconciliation and ensures transactions are accurately recorded, improving audit readiness, internal transparency, and confidence in monthly financial reporting.
Why is this tool better than doing calculations inhouse?+
Manual calculations are error-prone, inconsistent, and resource-heavy, particularly as entity numbers and transaction volumes grow. This tool ensures real-time accuracy, automated updates, and audit trails, along with scalability, helping your team focus on strategic finance tasks instead of repetitive, admin-heavy processes.
Why is this tool better than integrated transfer pricing modules?+
While integrated transfer pricing modules within ERP systems offer built-in solutions, they often come with high costs, limited flexibility, and complex implementation timelines. The IC Tool provides a more agile, cost-effective, and user-friendly alternative that can be configured to your group's exact requirements quickly.
What kind of intercompany calculations can the tool handle?+
The tool handles cost allocations, markups, transfer pricing adjustments, FX conversions, shared service charges, and more. Calculations are fully configurable, ensuring accurate reporting across diverse accounting frameworks, tax jurisdictions, and group structures, without manual spreadsheet rebuilding each reporting period.
How many jurisdictions can you add to our IC tool?+
Our IC tool supports over 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, so your finance team can expand into new markets without rebuilding underlying calculations.
Can I track and audit my intercompany transactions?+
Yes. You can track every transaction, change, and approval through a full audit trail. The system provides automated reconciliation, documentation, and reporting, helping your team meet audit, tax, and compliance standards with minimal manual work, while giving stakeholders confidence in every intercompany calculation performed.
What kind of support do you offer?+
We provide onboarding assistance, a dedicated account manager, detailed documentation, audit support, and ongoing customer support to ensure a smooth transition and continued collaboration, helping your finance team get the most from the tool as your group's structure and reporting requirements evolve over time.
Can I have an IC Tool demo before purchasing?+
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, addresses your team's specific questions, and fits within your existing finance processes before you commit to onboarding.
How much does it cost?+
It depends on the complexity of your transfer pricing structure, the number of entities involved, and the modules you require, but it is significantly cheaper than most other transfer pricing automation solutions on the market, while still delivering comparable functionality, accuracy, and audit-ready documentation.
Ready to see it on your data?
Book a demo