Stock transfer between two plants in same company code at price

[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 · Accepted solution]

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

[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]

Prem,

Yes, for this scenario, you will have to implement EC-PCA. This is different from CO-PA.

Detailed information can be found in http://help.sap.com/saphelp_erp2005vp/helpdata/en/eb/13759643c411d1896f0000e8322d00/frameset.htm

The Stock valuation is different from MM and PCA point of view. Stock Transfer within Co Code does not have any effect on the Stock value from MM point of view. The Stock value changes only from the PCA point of view. The solution works the same way with Standard Cost also. Your Standard Cost can remain the same in both the Plants.

The PCA entries are triggered by the Profit Centre data in Material Master. The Profit Centres should be different for both the Plants.

Hope this clarifies.

Thanks

[hnmuralidhara]

Dear Prem Desai,

You can't sell one plant to another plant within the same company.

One plant is selling a part to other plant at a margin...for what purpose?.

If you want, then you have to create another compnay code and then you can create Cross Compnay stock transfer using SD route with your margin.

Hope this information will be useful.

Bye,

Muralidhara

[Former Member]

Hi Prem ,

this is a transfer pricing scenario, please go thru the following links

http://help.sap.com/saphelp_46c/helpdata/en/06/aa82b1127611d383760000e8a5eb64/frameset.htm

Regards

Mangesh.