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2 min Demo: Allocations & Transfer Pricing


Watch this quick video to learn how CCH Tagetik Allocation capabilities can support profitability analysis and, in case of multi-entity, how transfer pricing processes can be enabled across the entire organization.


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Allocations and Transfer Pricing in CCH Tagetik.

The CCH Tagetik's built-in allocation engine allows to distribute and assign pool resources to multiple recipients based on both financial or statistical drivers according to either a flat or multi-level waterfall structure, to determine profitability by customer, product, lines of business and any other required dimension or, in case of multi-entity corporations, to meet transfer pricing requirements with the application marks-ups to respond to regulatory, management or text reporting requirements.

Let's take a look.

Leveraging the familiar Excel look and feel either on your desktop workstation or mobile device, it is possible to analyze each step of your multi-level allocation process.

In the first step of our model, we're taking into consideration a very simple departmental allocation where specific departments, such as aircraft expenses, have been fully allocated out to all of the remaining departments.

To access the details of any of these allocation rules, it's as easy as clicking on the number to understand and gain full auditability in terms of numerator, denominator and even the driver percentage that was used to allocate this specific example.

In the second step of this allocation model we're taking into consideration how much of these departmental expenses will stay within the US headquarter or maybe based on a specific stewardship percentage, will be allocated to the European headquarter or any other receiving entity.

The last step of our allocation model takes into consideration the application of some transfer price modeling where each entity will be charged departmental expenses based on the application of specific markups.

To quickly understand the effort required to set up an allocation and transfer price model in CCH Tagetik, finance power users can leverage our point and click configurable engine to define their sending dimensionality, the application of any markup, also the use of what driver, and where to allocate.

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