Transfer Pricing (Spread on Internal loans)

Created by Elin Stenrud, Modified on Wed, 20 Dec 2023 at 03:00 PM by Maria Appelquist

It is possible in TS to set up transfer pricing rules based on a credit rating for each subsidiary. When entering loans and deposits TS will automatically suggest a spread based on the rules. 

Master data / Tags

Set up a new Tag "Credit rating" and add all your rating values in the new list. Mark the new Tag as Company tag and remove deal part tag.  The new Tag will then only be visible in Companies. 

Master data / Companies

Enter the correct credit rating for each subsidiary. 

Risk management / Transfer Pricing Rules

Add a rule for each credit rating and if applicable currency and maturity.

Note! It is also possible to select if the spread should apply to both Loans and Deposits or just Deposits for example.

Begin - From which date the rule should apply

End- If you would like to keep history of changes set end date when the rule do not longer apply

Currency- if it should be a specific spread for a certain currency ( default All)

Maturity Period - if it should be a certain spread for a specific maturity period ( Default All).

Spread- the spread in % that will be added to the interest

Enter new loan or deposit

In the wizard TS will automatically suggest the spread based on transfer pricing rules. 

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