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Former Member

Product Costing with Transfer Price across Plants

Hi Sap Gurus

Business Scenario:

When a product is sent from a manufacturing plant to a warehouse plant, the product is sent with a transfer price that is higher than the production price.

The current process now is using special procurement keys to transfer the product from the manufacturing plant to the warehouse Plant. Using Special Procurement Key copies the whole quantity structure (cost estimate) from the source plant to the receiving plant.

Using the Special Procurement Key transfers the product across plants but with the cost to produce price rather than Transfer price.


Material 2323 is produced in Plant USKK, with 10 USD, and then should be sent to Plant USTT.

However, USTT plant gets the product with 12 USD as the transfer price.

(Note: Material 2323 is composed of BOM:- 12323 & 12324 Materials at the manufacturing Plant USKK)

Proposed Solution/ Business Requirement:

I learned Enhancement COPCP005, EXIT_SAPLCK21_002 user exit will allow us to choose the price for valuation. Meaning to select what is the price we would like to valuate the product at the receiving plant.

In our example, the transfer price is what we want to use in the receiving plant which is 12 USD.

The Challenge:

After applying the enhancement, the new price is applied to the BOM items rather to the product. Following our example, the transfer price 12 USD, is applied to Material # 12323 & 12324.

What do we need?

We need to make the price applied to the product (2323) instead to the BOM Items from the source plant.

We need the enhancement to disregard the BOM Items which is coming from the source as a result of the special procurement.

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2 Answers

  • Best Answer
    Posted on Jun 05, 2014 at 02:27 AM

    Hi Ahmed

    Are these plants in the same company code?? To manage materials at TP, ideally you need Material Ledger

    If you just want to manipulate the valuation for reporting needs, it has bigger implications. You need to think how are you going to exclude the profit margin for balance sheet purpose. If this material is further used in production, eliminating profit is even more difficult

    Anyways, for plants in same company code, you can use additive cost to add the margin.

    For plants in different co code, you can use the exit to determine the price..

    To ignore SPL proc key, you can use Badi Mat_Selection_ CK

    Br Ajay M

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 06, 2014 at 11:36 AM


    Thank you so much

    This BADI satisfy the requirement.



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