Intercompany agreement support should connect the written arrangement to what related companies actually do. A service agreement that describes one process while invoices and accounting follow another creates questions for management and advisers. Begin with the activity, the participants and the financial records before discussing documentation.
Describe the service in operational terms
Identify the provider, recipient, work performed and period covered. Explain who requests the work, who approves it and how the recipient’s business uses it. Broad descriptions such as “group support” can hide several different activities that need separate analysis.
Keep legal drafting and financial analysis coordinated. Counsel should address the agreement’s legal terms; the accounting or tax adviser should explain the charging records and any pricing analysis within their scope.
A documentation discussion checklist
- Names of the related entities and the activities being provided.
- Responsibilities, service periods and evidence that work occurred.
- The proposed charging basis and calculations for adviser review.
- Invoice frequency, currencies and the payment process.
- How changes, disputes and termination will be documented.
- How charges are reconciled between the companies’ records.
For cross-border arrangements, ask which tax, reporting and local-law questions require review. The IRS transfer pricing overview explains that related-party dealings can include services. An agreement alone does not establish that every pricing or reporting requirement has been satisfied.
Reconcile the arrangement to actual transactions
Retain the signed agreement, supporting calculations and invoices together. At review time, compare what one company recorded as a charge with what the other company recorded. Investigate differences in period, currency, amounts or classification rather than allowing them to accumulate without explanation.
As an organizational example, a group might maintain an invoice schedule showing the service period, calculation reference, currency, payment date and ledger references for both entities. The appropriate charging method still requires separate analysis.
Frequently asked questions
Is a standard template enough?
A template can organize questions, but the final document should reflect the actual services, responsibilities and applicable advice. Copying an unrelated arrangement can leave important facts unresolved.
Is documentation the same as permission to use any markup?
No. A proposed charge needs appropriate review. Recording a percentage in a contract does not by itself demonstrate that the pricing is suitable.
What if the agreement no longer describes the work?
Identify the changes and discuss them with the relevant advisers. Keep a dated record of approved changes and explain their effect on invoices and accounting.
Define the support before starting
Explore Intercompany Agreements and Transfer Pricing. Discuss the entities, transactions and records with Alfa Plus CPA.
General information; the appropriate work depends on your circumstances. Official references checked October 21, 2026.