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Transfer Pricing - U.S Entity

Apr 19, 2017 at 12:32 PM

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We are implementing S4 HANA 1610 and have following query about Transfer Pricing.

My client has operations across India, U.S & Srilanka. India is Head quarters. Each country has separate legal entity mapped as company code in SAP system.

U.S entity buys finished goods from India & SL. They also buy it from third party vendors and also manufacture goods them selves. Currently they have activated Split Valuation and mapped Valuation type to Countries & Third party vendor. e.g.

One FG has following valuation type in material master -

India, Srilanka, Manufactured & Third party vendors

In each valuation type, they are able to maintain different price. We are considering whether to retain this valuation type country wise in new SAP system.New SAP will be S4 HANA 1610.

Requirement of U.S entity is : They should be able to extract information about - With respect to goods procured from country, they want to know cost at which material was procured and price at which it was sold. For U.S Legal / Transfer pricing considerations and Management analysis, this information is needed.

How we can map above scenario in SAP ? Do we have any alternative other than creating valuation type for each country ??

Regards

Kapil

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