1. User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Transfer Pricing Rules
  5. Overview of Transfer Pricing Methodologies and Rules
  6. Unpriced Account

5.3.4.1.13 Unpriced Account

Under the Unpriced Account Method, the transfer rate for the account is defined as the Weighted Average of the Product Dimension Members. While using the unpriced account methodology, you can specify whether the Weighted Average of transfer rates has to be taken across all organizational units or for accounts only within that organizational unit.

Figure 5-52 Unpriced Account


Unpriced Account

The following options become available in the application with this method:

  • Add Dimension Values: This allows you to select the Product Dimension Members whose Weighted Average Transfer Rate will be assigned to the product being defined.

Note:

You should not base an unpriced account on another unpriced account.
  • Across all Organization Units: This allows you to specify whether the Weighted Average of transfer rates should be taken across all organizational units. If this option is not selected, the Weighted Average Rate will be calculated for each Org Unit. To calculate for each individual Org Unit, you must also select the Org Unit Dimension under Migration Dimensions in the Transfer Pricing Process.

Note:

The Unpriced Account Method applies only to accounts that use the Ledger Table as their Data Source.

Users must provide assumptions on the Transfer Pricing Process, "Migration" screen, choosing the applicable Dimensions, while using the Unpriced Account Method irrespective of Ledger Migration being selected or not.

If any Dimension is selected as Migration Dimension like GL Account ID, Weighted Average Rate would consider that too and WAR/Charge credit will only be calculated for combinations that are present in both Source and Target Product IDs'.

If Source and Target Product IDs' have different values for Migration Dimensions like GL Account ID, and then do not select that dimension (GL Account ID) as Migration Dimension.”

For more information on Migration screen parameters, see the Transfer Pricing Process chapter.