AI Transfer Pricing Reconciliation Agent

How Cassidy automates TP monitoring and true-ups using AI

Step 1: Trigger on close cycle or scheduled interval

The Workflow activates automatically at month-end, quarter-end, or on a custom schedule—pulling the latest GL extracts, intercompany invoices, and FX rates from connected ERPs and data sources.

Step 2: Normalize and segment transaction data

Cassidy maps raw ledger data to TP segments by tested party function (LRD, contract manufacturer, service provider), applies allocation keys for shared costs, and validates completeness against prior periods and counterparty records.

Step 3: Calculate policy variances and propose adjustments

The Workflow applies your configured policy logic—TNMM margins, cost-plus markups, royalty rates—to each segment, calculates variance against target ranges, and generates prospective or year-end true-up recommendations with supporting calculations.

Step 4: Generate tie-outs and audit-ready schedules

Cassidy produces reconciliation packs that trace TP results back to GL balances, audited financials, CbCR totals, and return disclosures—including segment P&Ls, JE registers, allocation key documentation, and benefit test evidence.

Step 5: Route for review and approval

Completed schedules and proposed adjustments flow through Human-in-the-Loop approval with role-based access, maker-checker controls, and timestamped audit logs for SOX compliance.

Step 6: Export documentation and post adjustments

Approved true-ups generate journal entries and intercompany invoices automatically, while BEPS 13 documentation—Local File appendices, CbCR reconciliations, and CAP-style issue files—exports to your documentation repository.