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Sep 14, 2020 at 10:33 AM

Internal margin between 2 departments in same company code(Professional Services)


Hello Everyone,

We have a scenario in our Professional Services company.

Local business unit(BU) and Global BU are 2 different department in same company code.

If Consultant "X" who works at Local BU, do time recording for a Customer Project, then cost rate is 500 Eur. This is general cost rate for Local BU.

But if Same consultant "X" who works at Local BU, do time recording for Global BU's Customer project, then cost rate will be 800 Eur.

In this case, if consultant "X" works for Global BU , internal margin for Local BU will be 800-500 = 300 eur.

Then Global BU bill these time to the customer with 1000 Eur. In this case;

Margin for Global BU = 1000 - 800 = 200 Eur

Margin for Local BU = 800 - 500 = 300 Eur

Total Margin= 300 + 200 = 500

How can we handle this scenario, considering internal margin report, activity cost rates maintenance, origin profit center etc.? We would like to reach these margin info for local BU and Global BU as well.

Thank you



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