IT Transfer Pricing

From Guesswork to Governance. IT Transfer Pricing Made Clear

Align IT, finance, and tax on one platform. Serviceware Financial automates IT transfer pricing calculations, ensures compliance, and documents every step for full audit transparency.

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IT Transfer Pricing Is Now a Strategic Risk

Cross-border IT services have become central to how enterprises create and distribute value. But as regulations tighten and audits grow more data-driven, transfer pricing has shifted from a compliance formality to a strategic and operational test. It raises a number of challenges…

Data and documentation gaps

IT and Finance teams maintain separate cost models, making it difficult to produce audit-compliant records that align with the Organisation for Economic Co-operation and Development (OECD) and International Financial Reporting Standards (IFRS).

Manual markups

Without automation, controllers spend weeks reconciling rates, cost pools, and internal service charges, leaving room for inconsistencies.

Opaque cost structures

Legacy Enterprise Resource Planning (ERP) systems can’t clearly show which IT costs are internal versus external, complicating markups and audit justification.

Regulatory scrutiny

Deloitte (2025) highlights that global tariffs, digital audits, and cross-border data requirements are disrupting established transfer pricing models and forcing multinationals to adapt quickly.

Limited integration

Horváth’s Transfer Pricing Study 2025 shows that only 31% of companies align their management model with tax requirements, and more than a third have faced income adjustments due to weak integration between the two.

~70%

of Heads of Tax say their operational transfer pricing processes need improvement

Source: Deloitte

31%

of companies align their management model with tax requirements

Source: Horváth, 2025

>1/3

have faced income adjustments due to weak integration between tax and management models

Source: Horváth, 2025

“The biggest challenge for many companies is determining and documenting test-compliant unit cost rates. You must clearly separate internal and external cost components to calculate markups correctly — and do it in a way that’s audit-proof.”

Fabian Mieloch

Head of Global PreSales at Serviceware SE

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Move From Manual Markups to Automated Compliance

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Transparent Unit Costing

Problem: Controllers spend weeks reconciling internal and external cost components.

Solution: Automatically calculate unit costs (Total Cost of Ownership, TCO) for each service, separating internal and purchased components.

Outcome: Clear visibility of what drives each cost and markup, ready for audit.

Automated Markup Calculation

Problem: Manual Excel models can’t apply consistent rules across entities.

Solution: The Serviceware IT Transfer Pricing solution fully automates markup costing, applying audit-proof logic across services, business units, and geographies.

Outcome: Faster, standardized markups that satisfy both finance and tax auditors.

Audit-Ready Documentation

Problem: Missing or inconsistent documentation creates compliance risk.

Solution: Serviceware Financial stores every rule, markup, and justification in one place, linked to Enterprise Resource Planning (ERP) and IT service data.

Outcome: Audit-ready documentation aligned with OECD and IFRS requirements.

Simulation & Scenario Modelling

Problem: Changes in tax rules or tariffs can invalidate static pricing models.

Solution: Simulate markup structures and rates before changes take effect.

Outcome: Confident decisions with complete traceability.

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Product Tour

The video shows how Serviceware automates billing; from collecting data and applying transfer pricing rules, to producing audit-ready invoices. You’ll see how customers like Germany's largest car manufacturer and Palfinger cut cycle times, reduce disputes, and increase trust with transparent dashboards.

Key Takeaways:

  • Replace spreadsheets with automation
  • Define flexible cost allocation rules
  • Deliver audit-ready invoices
  • Cut billing cycles by up to 90%
  • Strengthen trust across business units
Learn more features

Benefits

Mitigate risk and ensure compliance

Automate documentation and adhere to international tax regulations (Organisation for Economic Co-operation and Development, OECD, and International Financial Reporting Standards, IFRS) for full audit readiness.

Improve global tax efficiency

Align cost structures and markups across jurisdictions to optimize profit allocation and strengthen transparency.

Increase operational efficiency

Streamline charging and transfer pricing processes through automation, reducing manual work and reconciliation cycles.

Strengthen strategic decision-making

Provide accurate, transparent data that connects IT, Finance, and Tax — supporting planning, budgeting, and informed investment decisions.

Integrations

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Turning IT Transfer Pricing Into a Strategic Advantage

Fabian helps global enterprises automate transfer pricing end to end — from unit cost calculation to documentation and compliance. He has supported Fortune 500 companies in aligning IT, finance, and tax teams under OECD and IFRS requirements, ensuring every markup and rule is traceable.

Talk to a Transfer Pricing Expert

Fabian Mieloch
Product Strategy & Solution Engineering

See How Smart IT Billing Looks in Action

In 20 minutes, we’ll show you how to automate billing, reduce disputes, and build trust across teams.

Book my demo
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Serviceware's cooperation with KPMG strengthens the joint offering for customers in the field of transfer pricing. Get in touch to find out how to make your billing transparent, compliant and audit-proof.

Transfer Pricing Webinars

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On demand

Charging and Transfer Pricing

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Frequently Asked Questions

IT Transfer Pricing defines how internal IT services are charged across entities or countries, ensuring compliance with OECD and IFRS rules while reflecting true cost and value.

The Serviceware IT Transfer Pricing solution automates cost and markup allocations across entities, using data from ERP, CMDB, and ITSM systems for accuracy and auditability.

Transparent calculations, shared dashboards, and standardized markups remove ambiguity — business units can see and verify what drives each charge.

Yes. All documentation aligns with OECD and IFRS standards, ensuring that methods follow the arm’s-length principle and are fully auditable.

It connects with ERP, ITSM, and BI tools, ensuring consistent data for finance, tax, and IT stakeholders.

Yes. The solution supports global structures, currencies, and cost centers while maintaining a unified logic for markups and reporting.

By managing markups at the cost-type level and reviewing related-party margins holistically, Serviceware prevents multiple markups across the value chain.

IT Transfer Pricing integrates directly with IT Financial Management (ITFM), helping optimize profit allocation, mitigate risk, and support tax planning.

Key metrics include audit adjustments, effective tax rate, gross margin ratio, return on assets, and documentation turnaround time, all visible in Serviceware dashboards.

TCO measures all direct and indirect costs of delivering IT services. Serviceware calculates TCO automatically to support accurate, arm’s-length pricing.

The solution visualizes where IT value is created across entities — linking cost, asset, and service data to ensure fair profit distribution and compliance.