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Is Profit Center required when using Transfer Pricing?

Hi Expert,

If we are going to use transfer pricing in SAP, what are the requirement in order to keep it running? Does it require activation of profit center accounting? Thanks for support.

regards,

cpf

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 14, 2009 at 11:50 AM

    Hi,

    Transfer pricing is one of the parellel/multiple valuation approach specific to Profit Center Accounting so that the correct

    price is valuated. The Costing Variant and the Costing sheet created by you has dependencies of condition type KA01 in the condition tables which sets the transfer price depending on the combination plant, material and profit center to enable you to generate an accurate price report.

    Best Regards,

    Sadashivan

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