Transfer Pricing

How to Book Intercompany Market Research

Recording the allocation of costs for proprietary market research and consumer insights generated by a parent company.

Account NameTypeDebit ($)Credit ($)
Market Research ExpenseDebit18,500.00-
Intercompany PayableCredit-18,500.00

💡 Accountant's Note

Internal market research costs are shared among entities that utilize the data to drive local sales and strategy.

Practitioner & Systems Framework

💻 ERP Architecture

Set up a recurring intercompany journal for periodic data access fees if research is continuous.

⚠️ Audit Flags

Duplicate charges where a local entity pays for both internal and external research for the same scope.

📄 Required Documentation

The research report, evidence of data usage by the local entity, and cost-plus calculation.

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Expert Analysis by Qusai Ahmad

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

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