Automated Intercompany Cost Distribution | Accuracy & Compliance

 Cost Distribution

Intercompany Cost Distribution Software - Beyond ERP Cost Allocation

Automate intercompany cost distribution, shared services chargebacks, and transfer pricing markups without ERP customization or spreadsheets. Taxilla delivers rule-driven, audit-ready cost allocations across multiple entities and ERPs-faster, more transparent, and built for continuous close.

The Challenge

ERP Cost Allocation Was Never Built for Scale

As shared services expand and entities multiply, finance teams struggle with ERP-native and spreadsheet-driven cost allocation models:

Rigid ERP Allocation Logic
challenge1

ERP cost allocation modules lack flexibility for dynamic drivers, step-down, and waterfall allocations.

Black-Box Chargebacks
challenge2

Receiving entities cannot see how shared service costs were calculated, leading to disputes.

Transfer Pricing Risk
challenge3

Manual or inconsistent markup logic creates audit and compliance exposure.

Close Delays
challenge4

Allocations begin only after cost centers close-slowing the entire intercompany close.

Spreadsheet Dependency
challenge4

Excel models are fragile, non-auditable, and impossible to govern at scale.

Solution Overview

Built for Intercompany Close - Not Just Allocation

Taxilla automates end-to-end intercompany cost distribution as a core component of the Intercompany Close Suite. Acting as a centralized intercompany sub-ledger, Taxilla connects operational cost drivers with financial booking, ensuring every allocation is:

  • Rule-driven
  • Fully transparent
  • Aligned with intercompany and transfer pricing policies
How it Works

Configure Rules → Ingest Data → Distribute → Approve → Post

Fully Automated End-to-End Process

Configure

Configure Allocation Rules

Define allocation logic using dynamic drivers such as Headcount, Revenue, IT Usage, Square Footage, Time Sheets, or Custom KPIs, fully aligned with transfer pricing policies.

Ingest & Transform Data

Ingest & Transform Data

Automatically ingest cost and driver data from ERPs (SAP, Oracle), HR systems (Workday), and operational tools—no manual uploads.

Run the Driver-Based Allocation Engine

Run the Driver-Based Allocation Engine

Execute complex one-to-many and many-to-many distributions, including step-down and waterfall allocations with jurisdiction logic.

Review & Approve

Review & Approve (Dispute-Free)

Receiving entities review charges at line-item level, validate drivers, and approve before posting-eliminating disputes.

Post & Integrate

Post & Integrate

Approved intercompany journals are posted back to SAP, Oracle, NetSuite, or Microsoft Dynamics with full documentation.

Key Benefits

Tangible Outcomes for Your Finance Team

Accelerated Intercompany Close

Reduce cost allocation cycles by 60%+ through automation

Transfer Pricing Compliance by Design

Enforce consistent markup logic across jurisdictions

Audit-Ready Cost Allocations

Full traceability from source cost → driver → receiving entity.

ERP-Agnostic Scalability

Support complex multi-entity cost distribution without ERP customization

Dispute-Free Shared Services Chargebacks

Transparent logic eliminates allocation disagreements

Rapid Time-to-Value with Fast Deployment

5-8 week implementation vs 3-6 months for legacy tools-real ROI in the same quarter, not next year

Module Capabilities

Features Deep-Dive

Driver-Based Cost Allocation Engine

Driver-Based Cost Allocation Engine

  • Financial and operational drivers
  • Period- and entity-specific logic
  • Step-down and waterfall allocation support
Rule-Based Allocation Framework

Rule-Based Allocation Framework

  • Automated intercompany billing journals
  • Cost-plus and fixed-fee logic
  • Multi-currency and FX support
Intercompany Chargeback & Billing Automation

Intercompany Chargeback & Billing Automation

  • Automated intercompany billing journals
  • Cost-plus and fixed-fee logic
  • Multi-currency and FX support
Multi-Layer Workflow Collaboration

Multi-Layer Workflow Collaboration

  • Entity-level ownership and accountability
  • Configurable Preparer → Reviewer → Approver workflows
  • Line-item dispute visibility and resolution
  • Complete audit trail of approvals and changes
This transforms cost allocation from a back-office calculation into a governed intercompany process.
Technology Advantage

Engineered For Enterprise Scale

  • ERP-Agnostic Architecture

    ERP-Agnostic Architecture

    Works seamlessly across SAP, Oracle, NetSuite, Dynamics, and hybrid ERP landscapes.

  • Continuous Processing Model

    Continuous Processing Model

    Enables continuous cost allocation aligned with Continuous Close.

  • Unified Intercompany Sub-Ledger

    Unified Intercompany Sub-Ledger

    Single source of truth for all intercompany cost movements.

  • No Spreadsheets. No Custom ERP Code

    No Spreadsheets. No Custom ERP Code.

TechnologyAdvantage
Integrations

Seamless Integrated Across Your Ecosystem

Taxilla integrates with:

ERPs

ERPs

Operational Sources

Operational Sources
Industry Use cases

Trusted By Global Shared Services

Automated shared services chargebacks across 30+ legal entities, reducing disputes by 80% and accelerating close by 5 days.

Global Shared Services Organization

Automated shared services chargebacks across 30+ legal entities, reducing disputes by 80% and accelerating close by 5 days.

Manufacturing Conglomerate

Implemented step-down and waterfall cost allocation for plant, logistics, and IT costs with jurisdiction-specific transfer pricing markups.

Technology & SaaS Enterprise

Enabled usage-based IT and cloud cost distribution, delivering full transparency to receiving entities and audit-ready allocations every month.

Professional Services Group

Automated headcount- and timesheet-driven allocations across regions, replacing Excel models and improving cost accountability.

Pricing & Plans

Transparent Pricing for Every Stage of Growth

Taxilla pricing scales with your allocation complexity and transaction volume-ensuring you pay only for what you use.

Essentials

Mid-market firms

  • Up to 5 entities
  • Up to 5,000 transactions/month
  • Fixed %, Revenue allocation
  • Up to 2 ERP integrations
  • Standard Markups
  • Email support
  • Multi-currency & FX variance engine
  • AI Assisted Matching
  • Customized Reports
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Enterprise

Large global conglomerates

  • Up to 40 entities
  • Unlimited transactions
  • Step-down & Waterfall
  • Up to 6 ERP integrations
  • Automated TP Compliance
  • Dedicated CSM
  • Multi-currency & FX variance engine
  • AI Assisted Matching
  • Customized Reports
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FAQ's

Frequently Asked Questions

What is intercompany cost distribution?
It is the process of allocating shared services, overhead, and operational costs across group entities using predefined drivers to ensure fair performance measurement and tax compliance.
Can Taxilla handle complex transfer pricing markups?
Yes. You can configure Cost Plus rules where the system automatically applies jurisdiction-specific markups.
Does this replace my ERP?
No. Taxilla acts as a sub-ledger calculation engine, performing complex logic and posting clean journals back to your ERP.
How does Taxilla ensure transparency for receiving entities?
Every receiving entity gets full visibility into cost sources, drivers, calculation logic, and markups-eliminating black-box allocations.
What types of allocation drivers are supported?
Headcount, revenue, usage metrics, transaction volumes, square footage, time sheets, and custom business KPIs.
Can cost distribution be automated as part of month-end close?
Yes. Allocation runs can be scheduled or triggered as part of the close calendar, automatically generating and posting intercompany journals.

Move beyond ERP limitations and spreadsheets.

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