Transfer Prices in S/4 HANA doubt with Legal View margins cross-company

[alberto_vila_garcia]

Dear SAP Gurús, I have a doubt concerning transfer pricing in Legal Valuation.

The flow of the products is as follows.

• we produce an Assembly in Plant 0101

• The Assembly produced in Plant 0101 is sold with a Mark-up, to Company Code 004 (Plant 0004) in order to produce the Finished Product.

• The Finished Product produced in 004 is sold with a Mark-up to Company Code 005, and this last Company will sell the product to the final client.

In the last Company 005 the price will be V Price, but we will use also the S Price as statistical so we can do our analysis reports (with and without mark-ups).

The key of everything is, using correctly the product costing, we only will need to register purchase info records, for material raw, and all the other products will be costed (except if they come from a third) without the necessity of maintaining purchase info records for assemblies and finished products in different plants.

We need to know the cost of the product at each Company Code, with and without mark-up, hence we cost the material in each company with all the approaches (Legal, Group and Profit Center valuation) although I think with Legal and Group valutation would be enough.

How can be added a mark-up between two Company codes in the legal view, I mean, is there a way to add, for instance a 20% to the cost? I say cost, but could be any kind of price, because using an Additive Cost I think is manual. And I would like to do everything automatically. I think this can be managed by condition types in the pricing procedure of the Sales Order or Purchase Order, so whenever you sell a product to another Company Code you can add a percentage but I am not pretty sure of its usage and I am testing that right now.

That would be great because I could catch the V Price by creating a new Costing Variant Price (with a margin because of the condition type) and I would not need the usage of profit center valuation and neither reevaluate the stock. By other hand, with this solution we would have to create another costing variant for new products and force and initial V price which I am not pretty sure.

In summary, how can we add mark ups to the legal valuation?