Transfer Pricing

How to Book Intercompany Treasury Fees

Recording fees for centralized treasury functions, including cash pooling management and FX risk hedging.

Account NameTypeDebit ($)Credit ($)
Treasury Management FeesDebit3,500.00-
Intercompany Accounts PayableCredit-3,500.00

💡 Accountant's Note

Booking the service fee for treasury operations provided by the group's regional treasury center.

Practitioner & Systems Framework

💻 ERP Architecture

Classify as administrative or financial service expense depending on local GAAP.

⚠️ Audit Flags

Double-charging (paying both external bank fees and internal treasury fees) for the same activity.

📄 Required Documentation

Treasury service agreement and a breakdown of the fee calculation (e.g., basis points on AUM).

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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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