Decisions + Analysis
Transfer Pricing + Intercompany Profits

Transfer pricing identifies where value is created and where it moves inside an organization – a critical component of profitability analysis for multi-national organizations. And while your company is certainly motivated to maximize profits, compliance with local and global regulations governing transfer pricing to determine your tax exposure is a business necessity.

ImpactECS helps teams with two areas – Calculating and documenting pricing rules and activities from intercompany activities and maintaining calculated, detailed margin answers to improve visibility into overall corporate profit performance across divisions and geographies. With ImpactECS, you can eliminate your dependence on spreadsheet processes or overcome the limitations of ERP pricing modules and create a process that generates meaningful answers for two critical finance activities.

Establish a transparent, arms-length process to calculate transfer prices with ImpactECS

  • Calculate transfer prices: Determine the price of goods or services using cost-plus, comparable uncontrolled price (CUP), resale price, transaction net margin method (TNMM), or profit-split by location methods
  • Create transparent, repeatable processes: Comply with rigorous transfer pricing regulations that meet the requirements of each local taxing authority along with all global transfer pricing guidelines
  • Evaluate profit performance: Maintain centralized, decentralized, or hybrid transfer pricing programs and compare performance to planned pricing to identify profit risks
  • Centralize rules and transactional data: Establish pricing rules by jurisdiction and connect with existing systems to collect data on intercompany transactions by individual product or product category
  • Track and audit changes: Meet documentation requirements with audit logs and reports that track changes to transfer pricing rules

The Value of Costing in Changing Business Environments

Recent events have taught finance and costing leaders that unpredictability is the new norm—making effective cost planning a necessity. Cost data impacts organizational decisions from quoting new business, selecting vendors and suppliers, planning production, and servicing customers. The most innovative teams have enabled costing models that generate planned, forecasted, historical, and simulated cost data to drive commercial and operational decisions.

This session highlights use cases of cost analytics models that predict how market shifts are cost changes that impact profits, evaluate performance compared to benchmarks, determine the success of quotes to actual performance, and establish targeted cost management programs.

Resources

Creating a Cost-Focused Culture

Watch the Webinar >

It Starts with Costs

Download the eBook >

Guide to Implementing Cost Systems

Watch the 30-min Q+A >

Get Quick Insights and Best Practices

Watch the CostTalk Minute Series >

Using Product Costing to Guide Key Business Decisions

Watch the Discussion >

Daily News for Finance Leaders

Read The Ledger >

Ready to see ImpactECS in action?

Get a glimpse of how we help companies
understand their costs and profits