Complexity complicates internal cost allocation
No wonder: after all, HR management, global marketing or administrative services cannot be allocated to the various service recipients on a per-thumb basis. Instead, they need to be invoiced to the service recipients based on rules and distribution keys that are as fair as possible. And not to lose sight of legal tax requirements in the process. A complex task, but one that can be mastered effortlessly with insightpro.
insightpro supports various charging models
Case-related
charging, e.g. for
- reimbursement of expenses
- one-off issues
- individual projects
Cost allocation via key, e.g. for
- HR and pension fund management
- administrative services
- global marketing
Direct cost allocation, e.g. for
- IT services
- rental and energy costs
- auditing and consulting
Invoicing intercompany services in accordance with the rules
No longer rely on intransparent and confusing spreadsheets for your Operational Transfer Pricing (OTP). Instead, automate the allocation of your internal service costs with insightpro. Our OTP software supports a wide range of charging methods and maps the entire charging process in an audit-proof manner.
Generated invoices are automatically posted via an interface, invoices and attachments are transmitted digitally to the service recipients, transmission errors and manual effort are minimized. And you benefit from seamlessly traceable value flows, high compliance and satisfied service recipients and stakeholders.
Reliable information
Transfer prices must not be set arbitrarily. And it is not enough to calculate them to cover costs. On the contrary: tax authorities expect internal service costs to correspond to normal market prices. This means that in order to stay on the safe side under tax law, markups must be applied to the costs, as is customary among third parties.
This is no problem with insightpro: our OTP software allows you to flexibly define markup rules (e.g. only for internal costs) and apply them automatically in the allocation process.
Properly documented
In principle, transfer pricing offers opportunities for profit shifting and therefore tax minimization. This is precisely why tax authorities are scrutinizing transfer prices and their calculation bases more closely. Accordingly, complete traceability from the original data to the final settlement is recommended.
insightpro delivers exactly that. This keeps you on the safe side - and you can verify the basis of your price calculation at any time in no time at all. Our OTP solution documents which data was used to calculate the transfer prices and which methods, quantities and keys were used to charge them to the recipients.
Get in touch with us now
