Multi-Tier Inter-Company

To gain both greater tax advantages and increased operational efficiencies, organizations are increasingly moving to multi-tier trading models over simple point to point sale or single tier subsidiary models. This increases the need for greater flexibility around building multi-tier inter-company relationships, and greater control over the transfer price on each tier of inter-company activity. Equally important is the ability to select the correct trading route based on each business scenario.

Virtual Trader simplifies this potentially complex area through tier control, which allows the customer to define which tiers are needed, and the circumstances against which they are deployed. The customer can use any details relating to the transaction in order to establish the processing route.

Virtual Trader Multi-Tier

Each tier uses rules to define the ‘owner’ and ‘partner’ of the tier, and thus the relationship between each tier. This allows any configuration to be represented, as shown in the customer example below.

Customer Example

Virtual Trader Multi-Tier

Each tier is processed independently by Virtual Trader, allowing different processing and different pricing methods to be used on each tier.