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Former Member
May 14, 2010 at 11:16 AM

Transfer price for Stock transfers

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Hi Gurus,

Could anyone give the clarification for following query?

We have two company codes and each company code has 4 plants.

Case 1:

stock transfer from plant to plant within company code then profit center valuation only should get update with markup price

Ex. legal valuation price 100

FI Entry: Inventory p100 Dr 100

Inventory p200 cr 100

Profit ceter valuation view:

PCA Entry for P100

Interal Revenues P100 Dr 120

Internal change in stock P100 100

PCA Enter for P200

Internal change in stock P200 Dr 120

Delivaries from profit center P200 Cr 120.

  • P100, P200 are profit centers

  • 20% Markup price (internal profit)

Case 2:

stock transfer from plant p100 (company 1000) to plant T100 (Company 2000) then profit center valuation & legal valuation should get update with transfer price

Ex. legal valuation price 100

FI Entry: Inventory T100 Dr 120

Inventory p100 cr 100

Interal revenue P100 Cr 20

Profit ceter valuation view:

PCA Entry for P100

Interal Revenues P100 Dr 120

Internal change in stock P100 100

PCA Enter for T100

Internal change in stock T100 Dr 120

Delivaries from profit center T100 Cr 120.

  • P100, T100 are profit centers

  • 20% Markup price (internal profit)

My query is if profit centers are cross company codes then transfer price should be for both legal valuation & profit center valuation.

if profit centers are within company code then transfer price should be profit center valuation only.

If it is correct please tell me where should i do configuration for this.

Thanks

Visu