What's a transfer price rule?

A rule to calculate the transfer price of cross-charge transactions. The key aspects when you define the rule are as follows:

• Type of transaction to which the rule applies: labor or nonlabor

• Basis for the cross-charge transaction: raw cost, burdened cost, or revenue amount

• Method used to calculate the transfer price: rate schedule, burden schedule, or no further adjustment

• Markup or discount percentage to apply to the transfer amount calculated by the rule

• Applicable date range for the rule