> ## Documentation Index
> Fetch the complete documentation index at: https://docs.commenda.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Transfer pricing

> Document and manage intercompany transactions and transfer pricing policies.

If your company has related entities that transact with each other, transfer pricing rules require you to document that these transactions are conducted at arm's length. Commenda helps you manage this process.

## What is transfer pricing?

Transfer pricing refers to the prices charged for goods, services, or intellectual property transferred between related entities (e.g., a parent company and its subsidiary). Tax authorities require these prices to be at "arm's length" — meaning they should be similar to what would be charged between unrelated parties.

## What Commenda helps with

<Columns cols={2}>
  <Card title="Policies" icon="file-contract" href="/product/transfer-pricing/policies">
    Create and manage transfer pricing policies that define how intercompany services are priced.
  </Card>

  <Card title="Benchmarking" icon="chart-bar" href="/product/transfer-pricing/benchmarking">
    Track benchmarking studies that support your pricing decisions.
  </Card>
</Columns>

## How it works

<Steps>
  <Step title="Define relationships">
    Set up corporate relationships between your entities (parent-subsidiary, etc.) in the [corporate structure](/product/entities/corporate-structure) section.
  </Step>

  <Step title="Connect accounting data">
    Connect your accounting software to automatically pull intercompany transaction data.
  </Step>

  <Step title="Create policies">
    Document your transfer pricing policies, including the services provided and pricing methodology.
  </Step>

  <Step title="Track benchmarking">
    Record benchmarking studies that support your arm's length pricing.
  </Step>
</Steps>

<Info>
  Transfer pricing documentation requirements vary by country. Commenda supports both local file and master file documentation approaches.
</Info>