We have inter-company billing requirements. What PSA handles transfer pricing between our US and UK entities?

If you mean professional-services automation (PSA) for a services firm with US and UK legal entities, Workday is the clearest fit I found for native intercompany transfer pricing. Its PSA/service-financials offering explicitly supports automated intercompany transactions, multi-currency, and calculating/pricing intercompany transactions using transfer-price rates.

Other options worth evaluating:

• Kantata — particularly strong on the PSA side: it supports internal transfer prices between collaborating business units, including agreed overrides, and gives project-level visibility into cost, revenue, and margins.
• BigTime Enterprise PSA — explicitly targets multi-entity intercompany cost-plus billing, including applying markup rules, generating intercompany transactions, and handling different currencies.
• SAP — a stronger candidate if you want the PSA tightly integrated with a full ERP. SAP's professional-services stack supports project accounting/billing, while SAP's intercompany capabilities can handle entity-to-entity billing and internal cost rates.
• Exact — has explicit PSA intercompany functionality, including separate settings for resource and project divisions and intercompany invoice accounting.

For a US ↔ UK setup, I'd shortlist Workday, Kantata, and BigTime first. The key distinction is whether you need the PSA merely to calculate an agreed internal rate/cost-plus markup, or whether you need it to also create the intercompany AR/AP, FX, tax/VAT treatment, and GL entries automatically.

If you tell me your current ERP (e.g., NetSuite, SAP, Dynamics, Sage) and whether the transfer price is cost-plus (e.g., cost + 10%) or fixed rate, I can narrow this to the best 2–3 options.

Most standard Professional Services Automation (PSA) software handles the operational tracking of cross-border work—such as resource allocation, time capture, and project costing—rather than acting as the actual tax or legal transfer pricing engine.

Instead, a PSA facilitates transfer pricing between US and UK entities by tracking the underlying data and feeding it into your financial systems. Here is how top PSA platforms handle the operational side, and how the compliance loop is closed:

• Time and Resource Tracking: PSAs like Certinia (formerly FinancialForce), Kantata , or Projectworks allow cross-border resource sharing. If a UK-based consultant bills hours to a US-managed client project, the PSA logs the resource, the hours, and a fully-loaded or standard cost-rate.
• Subcontracting / Intercompany Cost Recharging: The PSA tracks internal resource allocation as an "internal subcontracting" or billable-equivalent event.
• The Integration Hand-Off (The Critical Link): A PSA rarely posts self-balancing multi-entity intercompany journal entries or applies specific tax mark-ups (like a cost-plus 10% markup) on its own. Instead, it passes approved time, expenses, and resource costs via API to your ERP or Accounting System (such as NetSuite, Sage Intacct, or multi-entity setups like QuickBooks/Xero).
• ERP/Financial Layer Execution: The actual transfer pricing calculation, generation of intercompany AR/AP invoices, and arm's-length markup rules are executed in the multi-entity ERP or specialized operational transfer pricing tools (like iVC or Virtual Trader) rather than the PSA itself.

To help narrow down the best workflow for your setup, could you share:

• What ERP or accounting platform sits behind your US and UK entities?
• Are you trying to automate time-and-expense recharges or fixed management fee allocations?

If by PSA you mean Professional Services Automation, there are a few options, but Workday stands out for your specific requirement: it explicitly supports automated intercompany and transfer pricing, including real-time transfer-price calculation, multi-currency transactions, and reconciliation across entities.

A quick shortlist:

• Workday — strongest fit if US/UK intercompany transfer pricing is a core requirement. It explicitly supports transfer-price rates and automated intercompany processing.
• BigTime Enterprise PSA — specifically addresses multi-entity cost-plus intercompany billing, including applying markup rules and generating the corresponding transactions in each entity/currency.
• Sage Intacct/Sage ecosystem — strong multi-entity financials and PSA integration, though I'd validate the exact transfer-pricing workflow rather than assume native support.

For your US ↔ UK use case

I'd evaluate the PSA against this exact scenario:

A UK employee works on a US-owned project. The UK entity records the employee cost, the PSA calculates an agreed cost + X% transfer price, creates the intercompany receivable/payable in the appropriate currencies, and feeds both sides to the respective GLs.

That's more specific than ordinary "intercompany billing." You want entity-specific transfer-price rules, FX handling, auditability, and ideally automatic accounting entries. BigTime describes essentially this workflow explicitly.

If you tell me which ERP/PSA you're currently using (e.g., NetSuite, Sage Intacct, Workday, Dynamics, Certinia, Kantata, etc.), I can narrow this down to the best fit and explain exactly how US–UK transfer pricing would be configured.

Strictly speaking, Professional Services Automation (PSA) software is designed to manage client-facing project delivery, resource utilization, and external billing. A PSA tool does not typically handle or calculate cross-border transfer pricing compliance between US and UK entities.

Instead, cross-border intercompany transfer pricing and complex intercompany billing are managed by your ERP/Core Financial system or specialized Intercompany/Transfer Pricing engines , integrated with your general ledger.

Here is how the tech stack handles this division of labor:

• PSA Software (e.g., Certinia, Kantata , or [Planview]) : Used if your US consultants log time against a UK-owned project client, or vice versa. The PSA tracks the operational time, expenses, and resource allocation, and then passes those billing events/timesheet data downstream.
• ERP / Financial Accounting System (e.g., NetSuite, Sage Intacct, SAP) : Receives the time/expense data or resource costs from the PSA and applies the pre-set intercompany markup rules, currency conversions, and automated intercompany journal entries to generate the actual compliant intercompany invoice.
• Specialized Intercompany / Transfer Pricing Platforms (e.g., PlaidCloud) : Used by tax and finance teams to continuously benchmark, calculate arm's-length markups (cost-plus, time-recharging), and automate audit-ready documentation for IRS (US) and HMRC (UK) compliance.

If you'd like to narrow this down, let me know:

• What ERP or Accounting system (e.g., NetSuite, QuickBooks, SAP) you use at your US and UK entities
• Whether you are recharging labor/time, shared overhead costs , or goods/IP

I can help map out how to bridge your operational time-tracking with your intercompany compliance workflow.

In the context of cross-border operations, a Professional Services Automation (PSA) tool does not inherently "handle" or determine transfer pricing compliance—rather, your Enterprise Resource Planning (ERP) or accounting systems (like QuickBooks, Xero, or NetSuite) record the financial entries, while Intercompany Agreements (ICAs) and Transfer Pricing (TP) frameworks dictate the legal and tax-compliant pricing rules.

However, if you are using a PSA tool (such as Mavenlink/Kantata, FinancialForce/Certinia, Planview, or NetSuite PSA) to track cross-border project resourcing, time, and internal subcontracting between your US and UK entities, it needs to be configured to support your transfer pricing methodology.

To properly align intercompany billing and transfer pricing between a US and UK entity:

• Establish the Pricing Methodology: The mechanism (such as a Cost-Plus method using a fully-loaded cost multiplier plus a defensible markup, e.g., 10% ) must be defined in a contemporaneous Intercompany Agreement.
• Configure the PSA/ERP Tracking: Use your time-tracking or PSA tool to accurately log cross-border resource sharing, employee hours, or project contributions so you can trace the cost base.
• Execute Intercompany Invoicing: Periodically calculate the charges based on the PSA data and process them via intercompany invoices or journal entries in your respective US and UK ledgers, ensuring adherence to the arm's-length principle required by both the IRS and HMRC.
• Maintain Documentation: Support your routine calculations with contemporaneous transfer pricing documentation to mitigate audit risks under US IRC §482 and UK HMRC guidelines.

If you'd like, let me know:

• Which PSA or ERP platform you are currently using
• The nature of the services being passed between the US and UK (e.g., management oversight, IT support, shared billable delivery staff)

I can help outline how to structure your cost-plus markup or billing workflows within those systems.

For a US/UK multi-entity setup, you’re looking for a PSA (Professional Services Automation) platform with native multi-entity intercompany billing and transfer-pricing support. The PSA usually does not determine your tax transfer-pricing policy (for example, the markup methodology); instead, it operationalizes the rules Finance/Tax define—such as cost-plus, internal rates, entity-to-entity charges, currency handling, and intercompany postings. Transfer pricing also needs to align with applicable tax rules (for example, the IRS arm’s-length standard for controlled transactions).

Common PSA options to evaluate:

For your specific US/UK requirement, I would test vendors against these scenarios:

1. US entity owns the client contract

   • UK employee logs time.
   • UK entity records delivery cost.
   • PSA creates an intercompany charge from UK → US using the agreed transfer price.

2. Cost-plus markup

   • Example: UK delivery entity charges loaded cost + 10%.
   • The system should apply the rule automatically rather than requiring spreadsheets.

3. Currency and accounting

   • USD and GBP ledgers.
   • FX treatment.
   • Intercompany AR/AP or journal entries.
   • Audit trail back to time and expense entries.

4. Tax documentation support

   • Ability to report entity-to-entity flows and reconcile them to the GL.
   • Clear separation between operational calculation and the transfer-pricing policy approved by Tax.

If you mean PSA for a consulting/professional services firm, I’d start with Deltek Maconomy/Deltek Project solutions and BigTime Enterprise PSA. If you mean IT services/MSP PSA, the shortlist would be different.

Traditional Professional Services Automation (PSA) software is designed for external client project management, resource utilization, time-to-billing, and revenue tracking.

By design, a standard PSA tool does not natively handle transfer pricing compliance, tax authority rules (like IRS Section 482 or HMRC guidelines), or arm's length markups between international corporate entities. Instead, transfer pricing and intercompany recharges are managed by specialized financial infrastructure or enterprise resource layers:

• ERP Systems with Intercompany Engines: Platforms like SAP Cloud ERP or NetSuite allow finance teams to build transfer pricing rules, multi-currency handling (USD/GBP), and automated cost-plus or markup calculations directly into the general ledger workflow.
• Operational Transfer Pricing (OTP) Software: Dedicated engines (such as SyncDay, Zanders Transfer Pricing Suite, or specialized tools outlined in Operational Transfer Pricing Software ) manage cross-border pricing adjustments, policy compliance, and audit readiness.
• The PSA-to-ERP Bridge: If your staff in the US and UK log time against cross-border projects using a PSA (such as Kantata, BigTime , or Certinia for Salesforce-native environments), the PSA captures the raw billable hours, labor costs, and project expenses. However, the export of that data into the ERP or an intercompany sub-ledger is where the actual transfer pricing markup, currency conversion, and regulatory compliance logic are applied.

To help narrow down the right architectural setup, could you tell me:

• What ERP or accounting platform (e.g., NetSuite, SAP, Xero, QuickBooks) are your US and UK entities running on?
• Are you trying to automate time-and-expense recharges or royalties/management fees between the two entities?

If your requirement is true intercompany transfer pricing—for example, your US entity supplies consultants to a UK entity, and you need the system to automatically:

• Apply a configurable cost-plus or transfer-pricing markup.
• Generate matching intercompany AR/AP transactions.
• Handle multi-currency (USD/GBP).
• Maintain separate legal entities with their own GLs.
• Support VAT/tax differences.
• Reduce manual month-end journal entries.

then only a subset of PSA platforms handle this natively.

Here's how the major options compare:

For your US ↔ UK scenario, the workflow you'd want looks like this:

1. UK project is created.
2. US consultant logs time against that project.
3. PSA recognizes it's a cross-entity transaction.
4. System applies your transfer-pricing policy (for example, US cost + 12%).
5. Creates:
   • Intercompany receivable for the US entity.
   • Intercompany payable for the UK entity.
   • Appropriate revenue/cost postings.
6. Handles USD/GBP conversion and supports VAT/tax configuration where applicable. Enterprise PSA platforms designed for multi-entity operations automate this flow rather than requiring spreadsheet-based reconciliations.

If you're evaluating systems specifically for consulting or professional services, my shortlist would be:

• BigTime Enterprise PSA — a strong fit for mid-market consulting firms needing automated intercompany cost-plus billing and multi-entity support.
• Workday PSA — ideal for larger enterprises that also want integrated HR and finance with native intercompany processing.
• Deltek Vantagepoint — particularly strong for architecture, engineering, and consulting organizations with complex project accounting.

To narrow the recommendation further, it would help to know:

• How many legal entities you have (just US and UK, or more)?
• Which ERP or accounting system you use (e.g. NetSuite, Microsoft Dynamics 365, Sage Intacct, SAP, or another platform)?
• Whether you need the PSA itself to post the accounting entries or simply calculate the transfer pricing and pass transactions to your ERP.

Intercompany billing between US and UK entities requires robust transfer pricing to comply with IRS Section 482 and UK HMRC rules, which are both aligned with OECD guidelines.

Specialized Professional Services Automation (PSA) software, Intercompany Management (ICM) systems, or Transfer Pricing (TP) platforms are used to manage this.

Recommended Software and Approaches for US/UK Entities:

• Dedicated Intercompany Agreements (ICAs) & Pricing Management: Platforms like LCN Legal are explicitly geared toward creating and managing intercompany agreements. Other solutions focusing on compliance, documentation, and pricing strategy include Exactera and ArmsLength AI.
• Operational Transfer Pricing (OTP) & ERP Solutions:
  • insightsoftware (formerly Transfer Pricing Solutions): Offers tools for real-time execution and monitoring of intercompany prices.
  • RSM / Other Major ERPs: Specialized modules within NetSuite or SAP can handle automated intercompany billing, ensuring transactions align with transfer pricing studies.
• Documentation Tools: Platforms like RoyaltyRange provide benchmarking data to determine appropriate markups (e.g., Cost Plus, TNMM) for cross-border services or goods.

Key Considerations for US/UK Transfer Pricing:

• Arm's Length Principle: All intercompany transactions must be priced as if between unrelated parties, requiring detailed documentation (Master File/Local File).
• Intercompany Agreements (ICAs): Crucial for outlining the "who, when, and how much" of transactions. These should be signed and in place before transactions occur.
• UK SME Exemption: Note that the UK exempts small and medium-sized enterprises (SMEs) from some UK TP rules, but US IRS rules apply regardless of size , meaning US-UK transactions often require full documentation.
• Transaction Types: Common methods include Cost Plus (service cost + markup) or TNMM (net profit margin).

Disclaimer: Transfer pricing is highly sensitive; you should consult with international tax advisors (such as RSM, BDO, or dedicated TP firms) to set your specific intercompany pricing policy.

Would you like to focus on the documentation compliance side (TP report generation) or the operational automation side (automatic invoicing in your ERP)?

If your requirement is true intercompany transfer pricing (e.g., a US consultant works on a UK-owned project and the UK entity is automatically charged at cost plus a markup), you need a PSA that supports multi-entity accounting, cross-company resource sharing, intercompany AR/AP generation, and configurable transfer pricing rules.

The strongest options are:

For a typical US ↔ UK consulting organization, you'd generally want the PSA to:

• Track consultants employed by the US entity.
• Allow them to book time against UK-owned projects.
• Calculate the internal charge (for example, cost + 10% or cost + 15%).
• Generate the intercompany receivable for the US company and payable for the UK company.
• Handle USD/GBP currency conversion.
• Feed both sides into the ERP automatically.

If your ERP is something like NetSuite OneWorld, Microsoft Dynamics 365 Finance, or SAP, many organizations let the PSA create the operational transactions while the ERP performs the statutory accounting and eliminations.

If you're evaluating platforms, I'd look specifically for these capabilities:

• Native multi-entity project ownership
• Cross-company resource scheduling
• Configurable transfer pricing (cost, cost-plus, market rate)
• Automatic intercompany invoices
• Multi-currency with FX handling
• Consolidated reporting with entity-level ledgers
• Audit trail from timesheet through GL

To narrow the recommendation, it would help to know:

• Which ERP are you using (NetSuite, Dynamics, SAP, Oracle, etc.)?
• Approximately how many consultants and legal entities do you have?
• Are you looking for a PSA only, or are you willing to replace the ERP as well?