Modeling a Financial Controlling System for Managing Transfer Pricing Operations

Oleksii Kalivoshko, Volodymyr Kraievskyi, Bohdan Hnatkivskyi, Alla Savchenko, Nikolay Kiktev (), Valentyna Borkovska, Irina Kliopova, Krzysztof Mudryk () and Pawel Pysz
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Oleksii Kalivoshko: Department of Financial, Credit and Tax Policy, National Science Center, Institute of Agrarian Economics, Heroyiv Oborony Str., 10, 03127 Kyiv, Ukraine
Volodymyr Kraievskyi: Faculty of Taxation, Accounting and Audit, State Tax University, University Str., 31, 08200 Irpin, Ukraine
Bohdan Hnatkivskyi: Department of Finance, Money Circulation and Credit, Ivan Franko National University of Lviv, Svobody Ave., 18, 79008 Lviv, Ukraine
Alla Savchenko: Faculty of Taxation, Accounting and Audit, State Tax University, University Str., 31, 08200 Irpin, Ukraine
Nikolay Kiktev: Department of Automation and Robotic Systems, National University of Life and Environmental Sciences of Ukraine, Heroiv Oborony Str., 15, 03041 Kyiv, Ukraine
Valentyna Borkovska: Educational and Scientific Institute of Business and Finance, Department of Accounting, Taxation and E-Business Technologies, Higher Educational Institution, Podillia State University, Shevchenko Str., 13, 32300 Kamianets-Podilskyi, Ukraine
Irina Kliopova: Institute of Environmental Engineering, Kaunas University of Technology, Gedimino Str., 50, 44239 Kaunas, Lithuania
Krzysztof Mudryk: Ukrainian University in Europe—Foundation, Balicka 116, 30-149 Krakow, Poland
Pawel Pysz: Faculty of Production and Power Engineering, University of Agriculture in Krakow, Balicka 116B, 30-149 Krakow, Poland

Sustainability, 2025, vol. 17, issue 14, 1-21

Abstract: The management of transfer pricing operations is considered from the perspective of modeling financial and accounting processes for various organizations, using agricultural enterprises as an example. It is demonstrated that the execution of transfer pricing operations between related parties—which may function as responsibility centers within an organizational holding structure—serves as a managerial lever influencing the financial income and expenses of individual business units. It is revealed that the developed model of managerial accounting for transfer pricing operations, grounded in tax compliance and the balancing of stakeholder interests, is based on two key aspects: first, to ensure the balanced development of the company’s business units, a list of key performance indicators (KPIs) is developed and integrated into a balanced scorecard (BSC), promoting the sustainable and stable operation and growth of the company; second, with access to this list of KPIs, the manager of each business unit can exert indirect influence over a segment of the final product’s value chain by selecting transfer prices that adhere to the arm’s length principle. The practical application of the proposed model is illustrated using previously formed economic operations from the research base.

Keywords: accounting; finance; transfer pricing operations; controlled transactions; financial controlling; financial management; financial flow management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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