Transfer Pricing

How to Book IC Logistics Network Access

Accounting for fees paid by subsidiaries to access the group's global logistics infrastructure and proprietary routing tech.

Account NameTypeDebit ($)Credit ($)
Logistics & Supply Chain FeesDebit25,000.00-
Intercompany PayableCredit-25,000.00

💡 Accountant's Note

A subsidiary pays a recurring fee to use the group's proprietary logistics network, which provides better rates and routing than local third-party options.

Practitioner & Systems Framework

💻 ERP Architecture

Allocate via the Supply Chain Management (SCM) module based on shipping volume or weight metrics.

⚠️ Audit Flags

Fees that exceed the savings generated by using the internal logistics network.

📄 Required Documentation

Benchmarking study comparing the IC fee against third-party logistics (3PL) providers.

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Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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