5.3.4 Transfer Pricing Rules

Transfer Pricing Rules allow you to specify methodologies for Transfer Pricing your Product Portfolio. A Transfer Pricing Rule may contain a Transfer Pricing Methodology defined for a particular product or a set of methodologies defined for all products (Dimension Members) in a particular Product Hierarchy.

The Transfer Pricing Rule is a key component of the Transfer Pricing Process. The Transfer Pricing Process uses the Transfer Pricing Methodologies contained in the Transfer Pricing Rules to generate Transfer Rates. Consequently, before processing information for a new period, you need to review and validate the assumptions contained in your Transfer Pricing Rules.

Note:

If Transfer Pricing Assumptions are managed at the Parent/Node level, new Product Dimension Members will automatically inherit TP Method assignments.

If new members are added to the applicable Product Dimension, you need to update your Transfer Pricing Rules by defining appropriate methodologies for the new products.