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Former Member

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

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,

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jan 24, 2007 at 09:53 AM

    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

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 26, 2007 at 09:31 PM

    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,

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