Stock transfer between plants in a company with different price

[Former Member]

Hi, expert,

i want to transfer materials between plants inside a company with different price which set by supply plant randomly, not the valuation price, how can i achieve this?

Thxs & best wishes,

David

[Former Member · Accepted solution]

Hi David,

One way to achive this is via STO order with billing.

Regards

Rang

[Former Member · Accepted solution]

Hi Rang,

Can you please explain how you think that billing can be used for STOs between two plants within the SAME company code?

Steve B

[Former Member · Accepted solution]

Hi Steve,

I mean when i transfer material from one plant to another using STO & i incur certain cost like transport, loading/unloading & the same is being captured via pricing & corect me if i'm wrong here for valuation price difference i can do billing within co.code i may be wrong.

Regards

Rang

[Former Member · Accepted solution]

Hi Rang,

As I said in my reply above you cannot have a different price and make a profit or loss on the material.

Freight costs are different because these are normal accounting postings that can occur when you transfer stock around within your company. BUt you cannot have a Bill and a profit (or loss) unless the movement is going between plants that belong to separate company codes.

If you are doing this or have seen it done then it will be due to a large, complex and risky modification and I strongly recommend that this is not something bthat should be done without the full knowledge and acceptance of the accounting that results (from your auditors).

Steve B

[Former Member]

Hi,

In short, you cannot.

Within SAP you cannot make a profit or loss by transferring an item between two Plants within the same company code.

This is not necessarily an SAP restriction as such, it is due to basic accounting rules.

The company code is seen as the legal entity for accounting and so if a movement within that company resulted in a loss or profit then this would break the rules.

I am not saying that it is impossible to set it up this way (nothing is impossible) but I personally recommend that you find another way of achieving this. Trying to modify the system to break such an important rule will definitely cause problems.

In previous implementations I have used the following option.

Simple use basic STOs that transfer the items at the material valuation price. But then at the end of each month produce a report that shows what materials have been transferred between the relevant plants and at THAT stage make a financial posting to reflect the "benefit" that has been realised (based on prices held in a new table, that represent the price that would have been charged).

It does appear to be a failing of the SAP system but it really isn't. What it normally indicates is that somehow the wrong org structure may have been built and perhaps the two plant should really be attached to separate company codes (especially if you need to show "profits and loss" in this way)?

Steve B

[Former Member]

Hi

Please check what pricing procedure attached to Document type UB in the following navigation.

SPRO-> Material management -> Purchasing -> conditions -> Define schema determination

Select-- Determine Schema for Stock Transport Orders

and see the pricing procedure for UB.

Then come to the pricing procedure in the navigation :

SPRO-> Material management -> Purchasing -> conditions -> Define calculation schema schema

Select the Pricing procedure define for STO and In control data , you can change the condition type P101 to PB00.

Then you can give price at the PO level.

Regards

Ramakrishna

[Former Member]

Hi

The differential should be processed as delivery cost. Maintain pricing appropriately.

warm regards

sairam akundi