Designing Global Profit Split System

NERA provided a comprehensive solution for the client. We designed a global profit split system and helped implement the transfer prices in their ERP system. For ease of access, we created a template that automatically calculates transfer prices and can be used for outcome testing throughout the year. Additionally, we authored the global transfer pricing policy and appropriate documentation.

The transfer pricing system was reviewed and accepted without any challenges and with minimal discussions in audits in Germany, Austria, the US, and Singapore.

The original transfer pricing system existed for over 10 years, and we effectively adapted it to new business developments like new functions, product lines, and additional entities. The client now has full control of their global cash-flows and operating results.