Transfer pricing software
Transfer pricing software that calculates, not just documents
Our transfer pricing software prices intercompany transactions, allocates costs to the right entities, benchmarks loans and cash pools, and reconciles the intercompany ledger. It runs on your own cost data and entity structure, so finance reviews outcomes each period instead of rebuilding the same spreadsheets by hand.
Most groups own a documentation platform and a pile of spreadsheets, with nothing in between that actually produces the charge. That middle layer is where audit risk lives, because the figures booked in each entity and filed in each return are assembled manually and cannot be traced back to a consistent, reviewable group policy.
This software closes that gap. It takes your cost base, allocation keys, service catalogue and financing terms, applies the policy identically across every entity, and returns both the postings and the evidence behind them, so any charge a tax authority questions can be followed back to source data in minutes rather than weeks.
What the software does across your intercompany model
The platform covers the four calculation areas that generate most intercompany exposure. Each module works from data your finance team already maintains, produces a reviewable output rather than a black-box number, and feeds the same evidence trail, so documentation, filings and statutory accounts all reference one consistent source.
Intercompany charge calculation
Cost pools, allocation keys, markups and service catalogues are configured once and applied consistently to every entity in the group. The output is a full charge schedule with the working shown, so controllers can review the basis of each amount before anything is posted and tax can defend the method later without reconstruction.
Entity-level profit impact
Every allocation moves profit between at least two entities, so the software models the result before you commit. You see margin, cost absorption and operating profit per legal entity under the proposed policy, which lets you test the position against local expectations rather than discovering the outcome after the return is filed.
Financing and cash pool pricing
Loans, cash pool legs and guarantee fees need defensible arm's-length rates, not a rounded number carried forward from last year. The tooling benchmarks participant-level borrowing and deposit rates against market data and documents the reasoning, covering the areas tax authorities challenge most often in cross-border groups.
Ledger reconciliation and VAT
A charge only holds up when both sides agree in the books and the indirect tax treatment is right. Balances are reconciled by counterparty and period, mismatches are flagged with their cause, and the VAT position of each cross-border charge is surfaced, so differences are cleared at close rather than found during an audit.
Checklist
How to judge any transfer pricing software, including ours
- Does it calculate charges from your real cost base, or only store a result?
- Can it show profit impact per legal entity before postings are generated?
- Does it price intercompany loans and cash pools, not just service charges?
- Does it surface the VAT consequence of every cross-border charge?
- Can it reconcile intercompany balances and explain each difference?
- Can your own finance team review the logic without calling a consultant?
Use cases
Groups that typically move onto dedicated software
The intercompany model sits with one person and there is no continuity plan
Charges are rebuilt manually each year and local filings slip as a result
An audit has questioned how a management fee or allocation was derived
Consolidation keeps throwing intercompany differences nobody can explain
Frequently asked
Common questions
How is this different from transfer pricing documentation software?+
Documentation software stores and formats the narrative; this produces the numbers that narrative describes. Many groups keep their documentation provider and add a calculation layer, because a local file is only as strong as the charge computation behind it, and that computation usually still lives in an unreviewed spreadsheet.
Does it replace our tax adviser?+
No. The software handles the repeatable mechanics of pricing, allocation and reconciliation, while your adviser sets policy, handles controversy and interprets local rules. In practice advisory work becomes cheaper, because the adviser reviews a structured, evidenced model rather than reconstructing calculations from scratch.
How long does implementation take?+
Most mid-sized groups have a working model within weeks, because the tooling is built around the cost data and entity structure you already maintain. The longer part is agreeing allocation keys and the service catalogue internally, which is a policy conversation rather than a technical integration exercise for your IT team.
Does it work alongside our ERP?+
Yes. The tool consumes cost and ledger data exported from your ERP and returns intercompany charges and journal information to be posted back, so nothing in the ERP needs reconfiguring. That keeps implementation risk low and lets finance keep working in the reporting environment they already know and trust.
See the software run on your own entity structure
In a short call we walk through your intercompany flows, show how each charge would be calculated, reviewed and reconciled, and set out what changes at close. There is no obligation and no lengthy scoping exercise, just a practical look at how the model behaves with your actual entities, cost base and financing arrangements.