Transfer pricing weights

Weights are associated with the entity and the period. You use them to allocate source amounts to entities based on relevant numbers. Weights can be any statistical number like headcount, the square footage, the number of working days or weeks in a month. Weights can be any relevant value that is used for transfer pricing calculations.

When weights are applied, the percent of the source that is represented by each entity is calculated for the period. The total of all percent calculations is always equal to 100.

Source amounts are distributed among entities according to the values that are assigned to each entity for the period. Weights must be set up at the source when the recharge calculation option is set to Split Using Source. Weights must be set up at the header when the recharge calculation option is set to Split Using Header.