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Dec 10, 2011 at 11:37 AM

Costing for Intercompany Sales

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I have a scenario as follows

1) Company A in which Material ledger is Active and Company B in which Material ledger in in-active (trading Company).

2) Company A Finished Goods Codes like 2XXXX while Company B finished Goods codes Like 1XXXX. Company A sells its products to Company B and Company B sells these products to market. There is a specific distribution channel for this (60).

3) Sales from Company A to Company B is based on Purchase order. Purchase order is created and delivery is done through u201C Migou201D then billing is created (inter-company sales process)

4) In KEDR we derived u201CSales Officeu201D by table lookup from table KNVV. We defined Finished Goods type to a costing key in KE4J. By this definition standard cost estimate is derived to Company A

5) When Company B sells its products from Company A 2XXXX , the system is giving message that no costing Key is defined in Valuation strategy KE4U. Note Company B is not defined for standard cost estimate as it is a trading company.

Can any one throw light on how to derive the cost to the trading company (B)

Ahmed Zain