Transfer Pricing

How to Book Intercompany Strategic Consulting

Recording fees for internal strategic advisory services provided by a global headquarters to its regional offices.

Account NameTypeDebit ($)Credit ($)
Strategic Consulting ExpenseDebit25,000.00-
Intercompany PayablesCredit-25,000.00

💡 Accountant's Note

Captures the cost of high-level business strategy development, market entry planning, and organizational restructuring support provided internally.

Practitioner & Systems Framework

💻 ERP Architecture

Require a project code in the ERP to distinguish strategic consulting from routine management fees.

⚠️ Audit Flags

High-value lump sum charges without specific deliverables or proof of execution.

📄 Required Documentation

Project scopes, strategic reports, and documentation of the arm's length nature of the internal daily rates.

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QA

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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