Transfer pricing allocations process flow

  1. Set up transfer pricing recharges.
    The transfer pricing recharge is used to identify the calculation name, sources and rules to determine the recharge calculation processing. The Recharge setup contains the issuing entity and the receiving entity information. An issuing entity can setup one recharge for each receiving entity or one recharge for multiple receiving entities that share the same calculation rules.
  2. Calculate recharges.
    After completing the transfer pricing setup, initiate the process to calculate the recharge amount for the target period. The calculation process generates transfer pricing transactions for each combination of the bill from and bill to companies.
  3. Interface Recharge Transaction.
    After you have the required intercompany recharges calculated, you can interface the transactions to create intercompany billing invoices.
  4. Process into billing documents
    After you have interfaced the transactions to intercompany billing, you can initiate the action to process the transactions into billing documents. This process will create intercompany billing documents.