Stock transfer between two plants under the same company code at profit

[Former Member]

Hello,

Hello,

I have a scenarios. One plant is selling a part to other plant at a margin. Both plants belongs to the same legal entity.

How can I map this scenario in SAP?

What will be the cost of my part in these two plants?

What mechanism I would use to transfer the stock from supplying plant to the buying plant?

Your urgent reply is appreciated.

Thanks,

[Former Member]

Prabhakar,

I beleive from your answer I will have to implement profit center acounting.

But can you elaborate your answer? What will trigger this CO-PA entries?

I am having standard cost as material cost. In your solution are you saying I will have different standard cost at two plants? If that is true than what happens when I transfer the stock from one plant to other?

Do I have to implement material ledger?

Thanks,

[Former Member]

Hi

To map this scenario, you should use Profit Centre Accounting.

Example

Matl XYZ is to be transferred from Plant 1000 to Plant 2000 at a profit.

Value of Matl XYZ in Plant 1000 is $100

Transfer Price: $120

From FI view point, there would not be any Accounting document as both Plants belong to the same Company Code.

From PCA view:

Plant 1000:

Internal Revenues Dr. 120

Stock Cr. 100

Profit Margin Cr. 20

Plant 2000:

Stock Dr. 120

Delivery from Profit Centre Cr. 120

Effectively, the value of Matl XYZ in Plant 1000 remains at $100 and in Plant 2000, it is $120.

Hope this clarifies.

Thanks