When needed
　　▼A transfer pricing policy is needed when：
　　·An organisation has been decentralised into divisions;
　　·Inter-divisional trading of goods or services occurs.
　　▼Transfers between divisions must be recorded in monetary terms as revenue for supplying divisions and costs for receiving divisions.
　　▼Transfer pricing is more than just a bookkeeping exercise. It can have a large effect on the * of divisional managers.