Transfer Price Targets
The transfer price targets app allows you to set targets for a combination of entity, and other dimensions and to set a counterparty and offset account for any adjustments. The combinations of dimensions will vary based on your implementation but will contain entity and up to three other dimensions, such as product and cost center.
Setting transfer price targets
Transfer price targets are displayed in a table with a toolbar to perform specific actions.
For an overview of standard table features see “Working with Tables” in the Solutions Framework User Guide.
The table includes the following columns:
| Column | Notes |
|---|---|
Row |
The number of the row, used for reference in status and error messages. This column is read-only. |
|
A color that indicates the status of the target (green or red). This column is read-only. |
Status |
Text that indicates if the target is valid, invalid, or a duplicate of another row. This column is read-only. |
Status Message |
Provides more detail on the status if it Duplicate or Invalid. This column is read-only. |
Entity |
The entity that the target is specified for |
Detail |
(Optional) The symbol in the details dimension that the target is specified for. This column may not appear or have a different heading (such as product) depending on the configuration of your system. |
Segment |
(Optional) The symbol in the segments dimension that the target is specified for. This column may not appear or have a different heading (such as product) depending on the configuration of your system. |
Control |
(Optional) The symbol in the controls dimension that the target is specified for. This column may not appear or have a different heading (such as product) depending on the configuration of your system. |
Counterparty |
Specifies the entity that any target price adjustments made to fall within a target range will be applied to. |
Offset Account |
Specifies the account that the transfer price adjustment will be applied to for the counterparty. |
Transfer Price Methodology |
Specifies the transfer pricing methodology used for the target. This methodology affects the calculations used to determine variance to target and apply adjustments in the transfer price analysis app. |
Acceptable Minimum |
(Optional) Specify the lowest acceptable value for measurement of the transfer price methodology selected. For all methodologies, this value is entered as a decimal (e.g., 0.05 = 5%) If the methodology is CUP, this is a negative percentage adjustment to the target price. Depending on the configuration of your system, this column may not appear. |
Target Minimum |
Specify the lowest target value for measurement of the transfer price methodology selected. For all methodologies, this value is entered as a decimal (e.g., 0.05 = 5%) If the methodology is CUP, this is a negative percentage adjustment to the target price. |
Target |
Specify the target value for measurement of the transfer price methodology selected. For all methodologies, other than CUP, this value is entered as a decimal (e.g., 0.05 = 5%) If the methodology is CUP, this is the target price (e.g., 10.5). |
Target Maximum |
Specify the highest target value for measurement of the transfer price methodology selected. For all methodologies, this value is entered as a decimal (e.g., 0.05 = 5%) If the methodology is CUP, this is a negative percentage adjustment to the target price. |
Acceptable Maximum |
(Optional) Specify the highest acceptable value for measurement of the transfer price methodology selected. For all methodologies this value is entered as a decimal (e.g., 0.05 = 5%) If the methodology is CUP, this is a positive percentage adjustment to the target price. Depending on the configuration of your system, this column may not appear. |
Time Period |
Displays the time period the target applies to, which is selected before the table appears. This column is read-only. |
To validate a specific row:
- Right-click on a row selector.
- Select Validate.
You may want to validate a specific row if it was a duplicate of another row, and the original row has been modified as the status will not be dynamically updated.
To validate all rows, click on the validate button in the toolbar. A message appears indicating all validation checks passed, or a table appears displaying and validation errors. The status of all rows is updated.