How SAP Determine a Transfer Price

Material 1 belongs to profit center 1, is a semifinished product, and is manufactured in plant

0001. The final product is put together in plant 0001 as well. A production order is created
for material 1, which is used for the production of the final product. The production order is
assigned to profit center 2.

1. Based on the movement type in the production order, the system determines that an
actual goods movement should take place. For actual data, variant 000 is always used
for transfer prices.
2. The system reads transfer price variant 000 and finds that it should use pricing
procedure TP0001.
3. The pricing procedure contains the valid condition types for pricing and the order in
which they are calculated. The system takes the first condition type in the pricing
procedure, KA01, and searches for a valid condition record.
4. Each condition type in the pricing procedure can be assigned an access sequence. In
this case, the condition type uses the access sequence ZG01.
5. The system reads the condition tables specified in the access sequence until it finds a
valid condition record.
S A

The first table, which requires a combination of plant, profit center, and material, does
not yield a valid condition record. So the system reads the next table, which requires a
combination of profit center and material, and finds a valid record.
1. The system determines the transfer price based on the information in the condition
record. In this case, it finds a fixed price of USD 100.00 for material 1 when it is
delivered from profit center 1 to profit center 2. This price is the price used when
material 1 is delivered to profit center 2.