The idea of this workflow is to charge certain costs from the headquarters (HQ) entity to entities that are using its services. These include a markup based on transfer pricing.
For instance, the HQ entity supports all entities in the hiring process and then distributes its hiring costs to the local entities including a markup, based on a transfer pricing setup (e.g. comparable analysis with help of transfer pricing consultants.
There is a driver of the cost, that is Headcount or Revenue by which the costs are distributed to the entities. An output is generated that shows how much of the cost each entity needs to bear.
Further, the accounting entries for the HQ entity are created.
Read more on the topic Transfer Pricing Recharge on the KNIME Blog: https://www.knime.com/blog/automate-transfer-pricing-recharge
For instance, the HQ entity supports all entities in the hiring process and then distributes its hiring costs to the local entities including a markup, based on a transfer pricing setup (e.g. comparable analysis with help of transfer pricing consultants.
There is a driver of the cost, that is Headcount or Revenue by which the costs are distributed to the entities. An output is generated that shows how much of the cost each entity needs to bear.
Further, the accounting entries for the HQ entity are created.
Read more on the topic Transfer Pricing Recharge on the KNIME Blog: https://www.knime.com/blog/automate-transfer-pricing-recharge