Intercompany Agreement Services
Intercompany agreements your books actually follow.
Commenda drafts the intercompany agreement for every transaction flow, designs the transfer pricing policy behind it, and books it monthly, so what the contracts say, what the policy prescribes, and what gets invoiced never drift apart.
Trusted by global businesses
The agreements exist.
The books don't follow them.
Most companies with intercompany transactions have some version of an agreement on file. The problem is rarely the drafting. It's that the agreements, the policy, and the actual invoices tell three different stories, and an auditor only needs to find one gap.
Agreements frozen at incorporation
The intercompany agreements were drafted from a template when the subsidiary was formed. The business has changed, the flows have changed, and the contracts now describe transactions that no longer happen.
Policy and invoicing have drifted apart
The policy says cost-plus, but the invoices are ad hoc and the markup varies month to month. Year-end true-up entries force the numbers into line, and true-ups are exactly what auditors probe.
Every new entity multiplies the pairs
Add one entity and you add several intercompany relationships. The transaction map that was accurate at two entities is fiction at five, and nobody owns keeping it current.
What you get
What the service includes.
An agreement per transaction flow
Intercompany agreements drafted for each flow: services, cost-plus arrangements, license and royalty, and financing. Existing agreements are reviewed for policy consistency and redrafted where they've fallen behind.
Full transaction mapping
Every intercompany transaction mapped across all related parties: services, cost recharges, license and royalty flows, and financing. The agreements are drafted against what actually moves.
A method per transaction type
Cost-plus for services, operator margins for distribution, royalty rates for IP, arm's-length interest for financing. Each flow gets its own method, supported by benchmarking.
Operational transfer pricing
The policy is booked monthly: intercompany invoices raised at the policy rate, entries in the ledger as you go. Books that match the policy all year, not after a year-end scramble.
Drift flagged, not discovered
ERP integration flags TP-relevant changes in your intercompany activity in real time, so a divergence between policy and actuals surfaces in weeks, not at an audit.
Annual agreement review, included
The agreement and policy review cycle is built into the engagement, not an optional extra. New entities and changed functions get folded in on schedule.
How it works
From informal flows
to signed agreements.
The same workflow whether you're papering flows for the first time or replacing agreements the business outgrew.
Step 01
Map the flows
We map every intercompany transaction and build the functional analysis: which entity does what, owns what, and bears which risks.
Step 02
Design the policy
A transfer pricing method and price for each transaction type, set from benchmarking data and documented to OECD standards.
Step 03
Draft the agreements
An intercompany agreement drafted for each flow, or existing ones reviewed and redrafted, so the contracts match the policy exactly.
Step 04
Operate it monthly
Invoices raised at the policy rate, entries booked each month, drift flagged via your ERP, and the agreements reviewed annually.
A template,
or an operating system.
Advisors hand you a well-reasoned document and leave the hard part, running it, to your finance team. Commenda systematizes the recurring work: the agreements are drafted once and operated every month.
The template agreement pack
Drafted once, then abandoned.
- Agreements drafted from a template, never revisited
- A policy PDF delivered at advisory rates
- Nobody accountable for booking it monthly
- Contracts and invoices reconciled at year-end, if at all
- Changes to the business discovered at audit
- Deep jurisdiction expertise (retain for complex one-offs)
Commenda intercompany agreements
Agreements that hold every month.
- An agreement drafted per transaction flow
- Every price supported by benchmarking
- Agreements kept consistent with the policy
- Booked monthly, so books match the contracts year-round
- ERP integration flags drift in real time
- Annual review built into the engagement
Where it fits
The agreement is the paper.
Everything else backs it.
Benchmarking sets the arm's length range, the policy applies it, the agreements put it on paper, and the documentation package is the written defence of all three. Commenda runs the full lifecycle on one platform.
Common questions
The right agreement follows what's actually moving between the entities. A services agreement covers one entity providing development, support, or back-office work to another, typically on cost-plus, with a markup applied to the cost base. A distribution agreement covers reselling, where one entity keeps an arm's-length operator margin. A royalty or licensing agreement covers IP. Many setups need more than one, for example a dev entity on a services agreement with a royalty arrangement on top. We map your actual transactions first, then put the right contracts around them rather than starting from a template.
It's the discipline of booking the policy in the ledger as you go: intercompany invoices raised monthly at the policy rate, so the books match the policy all year. The alternative is the common one, where the policy lives in a memo and finance scrambles at year-end with true-up entries to force the numbers into line. Year-end true-ups are exactly what auditors probe, because they show the policy wasn't actually operating. Commenda runs the monthly cycle so the drift never accumulates.
Start with the map. Cost recharges and informal funding between entities almost always carry a TP question, even when founders don't realize it. We map every flow across all related parties, characterize each one, and then design the policy and agreements around what's actually happening. Fixing the paper to match reality is far cheaper than explaining the gap to an auditor later.
From data, not instinct. The markup is established through benchmarking against comparable companies in recognized databases, with the tested party positioned inside the resulting arm's length range, and documented against the functional analysis: who does what, who owns what, who bears which risks. Benchmarking is part of the policy engagement, because a policy built on an unsupported number is a liability with a signature on it.
The transaction map gets updated, the policy is extended or revised, and the agreements follow. An annual policy review is built into the engagement rather than sold as an optional extra, and because Commenda connects to your ERP, TP-relevant changes in your intercompany activity are flagged as they happen instead of discovered at year-end.
We review what exists first. Agreements that still match the policy and the actual flows stay. Agreements that describe transactions that no longer happen, or miss ones that do, get redrafted for policy consistency. The goal is one coherent set: what the agreements say, what the policy prescribes, and what actually gets invoiced are the same thing.
Make the agreements, the policy,
and the books agree.
Book a 30-minute call. We'll map your intercompany flows, show you where the agreements and the books disagree, and lay out the agreements and policy that fix it.
