Profit center......URGENT

[Former Member]

Hi all

How can we transfer prices between to profit centers.

Is there any configuration needs to be done,if so please let me know

Thanks

Ansuman

Message was edited by:

Ansuman mohanty

[Former Member]

Hi Ansuman,

Transfer prices let organizations that divide tasks among different organizational units to valuate the goods and services exchanged between these units.

Particularly large corporations are often divided into a number of independently operating divisions or companies that exchange large quantities of goods and services with one another. Transfer prices are becoming an increasingly critical method for controlling corporate units as the division of labor between internationally operating units increases, value‑added chains become more complex and responsibilities become more decentralized.

By valuating the exchange of goods and services using transfer prices, you can significantly influence the actual success of your corporate divisions or profit centers. Especially in this context, today’s accounting systems need to be able to provide decision support that represents operational results from different points of views and using different currencies.

If you want to implement transfer pricing in a live system, you need to analyze the effects this would have on all your live applications carefully. What measures you need to take will depend on how your installation is customized. SAP can only provide a few standard programs to support you in this.

Below mentioned are the conditions under which you can implement transfer pricing and multiple valuation views in a live system. It also tells you what activities you need to carry out depending on which application components you are actively using and how your system is set up.If your system meets the conditions described here, you can activate multiple valuation views in the standard system on a project basis using the conversion programs provided or after consulting SAP.

The Controlling and Material Ledger application components form the basis for transfer pricing. Consequently, certain minimum criteria must be met in these applications before you can implement multiple valuation approaches in your system. Using multiple valuation approaches is optional in Financial Accounting (FI). However, you must use multiple valuation approaches in FI if you want to do so in Asset Accounting (FI-AA).

Generally, you can implement multiple valuation approaches in the standard system without carrying out any conversions if the controlling area currency is the same as the group currency and if the material ledger is not yet active. If you want to activate multiple valuation approaches in FI, you can do this as long as you are not already using multiple currencies. However, be sure to note the effects this has on open items.

Hope I had been able to help you. Please assign points.

Rgds

Manish