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Former Member
Mar 01, 2010 at 10:15 AM

Transfer price with markup+freight from plant to plant in same company code

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Hello ,

Can anybody explain the concept of stock transfer plant (manfacturing) to plant (selling) in indian scenario and also

its implications in FI, CO and excise.

The current situation here is manf plants transfers materials toanother plant. the receiving plant material stocks should be

valuated at cost of the material from manf plant plus the freight cost. The manf plant also transfers material with markup

price say 7% to the receiving plant. This markup should be captured as unrealized profit in CO for MIS purpose. The markup + freight cost should be loaded unto the material in receiving plant .

I am unable to capture the cost. Right now the transfer is taking place at price in the material master in the supplying plant.

Regards

Nandini