21 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. In addition, it contains certain parameters used in defining option cost methodologies.

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.

The procedure for working with and managing the Transfer Pricing Rule is similar to that of other Oracle Funds Transfer Pricing assumption rules. It includes the following steps:

• Searching for Transfer Pricing Rules
• Creating Transfer Pricing Rules
• Viewing and Editing Transfer Pricing Rules
• Copying Transfer Pricing Rules
• Deleting Transfer Pricing Rules

As part of creating and editing Transfer Pricing Rules, you can also define Transfer Pricing Methodologies. See:

• Defining Transfer Pricing Methodologies
• Defining the Redemption Curve Methodology
• Defining the Unpriced Account Methodology

Oracle Funds Transfer Pricing provides you with the option to copy, in total or selectively, the product assumptions contained within the Transfer Pricing, Prepayment, and Adjustments Rules from one currency to another currency or a set of currencies.