Course Overview Diagram I: Introduction and Definition of Terms

Course Overview Diagram I

5/20/2018 Tra nsfe r pr ic ing in sa p - slide pdf.c om
1. Introduction and Definition of Terms
2. Fundamentals of the Transfer Pricing Solution
3. Transfer Prices from the Viewpoint of PCA
4. Transfer Prices in the Various Applications
5. New Functions in PCA
6. Posting Examples
http://slide pdf.c om/re a de r/full/tra nsfe r-pr ic ing-in-sa p 1/73
© SAP AG

5/20/2018
Strategic Enterprise Control Tra nsfe r pr ic ing in sa p - slide pdf.c om
America Europe/Africa Asia
E
Division A
USA
F J
?
MEX
Division B
Corporate Executive
Board
BRA
 Legal view - that of the independent legal companies


Group view - that of the organization as a whole
 Profit center view - that of the decentralized responsibility areas
© SAP AG

Parallel Valuation Approaches

Group view Legal view Profit center view
Group
CoCd 1 CoCd 2 CoCd 3 CoCd 4
Profit center 1
Profit center 2

© SAP AG
5/20/2018
Definition of a Transfer Price Tra nsfe r pr ic ing in sa p - slide pdf.c om
A transfer price is a price used to valuate the transfer
of goods and services between independent

organizational units.

© SAP AG
5/20/2018
Transfer Prices in the R/3 System Tra nsfe r pr ic ing in sa p - slide pdf.c om
Controlling area
CO
Profit center
PCA
FI Company code
Transfer price from the group viewpoint = group production costs

Transfer price from the profit center viewpoint = management price
Transfer price from the legal viewpoint = sales and purchase price

© SAP AG
5/20/2018
Parallel Valuation Approaches Tra nsfe r pr ic ing in sa p - slide pdf.c om
Raw Cost center

Semifin. Finished Distribution
material product
material center Sales
order
Production Production
order order

© SAP AG
5/20/2018
Parallel Valuation Approaches Tra nsfe r pr ic ing in sa p - slide pdf.c om
Cost center
Raw Semifin. Finished Distribution
material material product center
Sales
order
Production Production
order order
Company code 1 Company code 2 Company code 3

PrCtr1 PrCtr2 PrCtr3 PrCtr4
CCtr 20
L 70 100 L 120
75 G 70 G 90
P 75 120 P 140
L 70 L 70 L 120 220 L 220
G 70 G 70 G 90 G 90
P 70 P 140 240 P 240
P 75
Assumed Plan = Actual => No Variances

© SAP AG
5/20/2018
Course Overview Diagram II Tra nsfe r pr ic ing in sa p - slide pdf.c om
Transfer Prices from the Viewpoint of PCA

3.
6. Posting Examples

© SAP AG

5/20/2018
Quantity and Value Flow Tra nsfe r pr ic ing in sa p - slide pdf.c om
PCA
Profit center 1 Profit center 2

V
A
L
s
t CO-
U s
o
FI c OM CO-
E d
a
PA
e
h
r
e
v
F O
L
s
t CO-
O s
o PC
c
t
W c
i
e
r
D
Process
and
data Purchase Production Transfer Sale
© SAP AG

The Concept of Parallel Value Flows
PCA
V
A
L or or
U FI s CO-
t CO-
s PA
E o
c OM
d
a
L e
h
r
F G
P e
v
O
L
O s
t CO-
L s
o PC
W G c
t
c
P e
r
i
D
Stock
L
Process G
and P
data
Material Ledger

© SAP AG
5/20/2018
Currency and Valuation Profile Tra nsfe r pr ic ing in sa p - slide pdf.c om
Valuation
10
Leg.
Legal
0 30
Group 1
Grp
30
PrCtr 2 PrCtr.
10 30 Currency type
Company code currency
Group currency

© SAP AG
5/20/2018
Activating the C & V Profile Tra nsfe r pr ic ing in sa p - slide pdf.c om
Controlling
C&V
CO-
Cur..
Leg.
Profile
OM A
Cur. c
Grp Cur.
CO-
t
Leg.
v
i
PC Cur. a
PrCtr t Cur.
Grp
e
Cur.
Material Cur. Cur. Cur.

PrCtr
Ledger Grp PrCtr
Leg.

© SAP AG
5/20/2018 Scenarios Tra nsfe r pr ic ing in sa p - slide pdf.c om
Profit Center Accounting

PCA Cur. Cur. Cur.
PrCtr or Grp or Leg.
Financial Accounting Controlling
Cur. Cur. Cur.

Leg. mand. CO- Leg. mand. CO-
Leg. opt.
OM PA
FI Cur. Cur. Cur.
Grp opt. CO- Grp Grp opt.
PC
Cur. Cur. Cur.
FI- AA
AA opt.
PrCtr PrCtr PrCtr opt.
Material Ledger ML Cur.

Cur. Cur.
Leg. mand. Grp PrCtr

© SAP AG
5/20/2018
Example I - Group Valuation Tra nsfe r pr ic ing in sa p - slide pdf.c om

PCA Cur.
Grp
CO- Cur. CO- Cur.

Cur.
Leg. OM Leg. operational PA Leg.
FI
CO- Cur.
Cur. PC Cur.
Grp
Grp
Grp
FI- AA
AA
Material Ledger
Cur. Cur.
Grp Leg.

© SAP AG
5/20/2018
Example II - PCA Valuation Tra nsfe r pr ic ing in sa p - slide pdf.c om

Cur.
PCA
PrCtr
CO- Cur. CO- Cur.

Cur.
Leg. OM PrCtr operational PA PrCtr
FI
CO- Cur. Cur.
Cur. PC Leg. Leg.
FI- AA
AA PrCtr
Material Ledger
Cur. Cur.
PrCtr Leg.

© SAP AG
5/20/2018 Summary I Tra nsfe r pr ic ing in sa p - slide pdf.c om
 Parallel value flows throughout all of

Financials
 The valuation approaches stored in the
system are defined in the currency and
valuation profile.
 You can store up to
- 3 valuations in
- 2 currencies
throughout your system.

© SAP AG
5/20/2018
Summary II Tra nsfe r pr ic ing in sa p - slide pdf.c om
 Inventory is valuated using all active

valuation approaches in parallel.
 The material ledger is a subsidiary ledger
in inventory accounting.
 Inventories are valuated by plant or
company code in the R/3 System.
 Inventories of one material in one plant

always belong to the same profit center.

© SAP AG
5/20/2018
Summary III Tra nsfe r pr ic ing in sa p - slide pdf.c om
 No influence on posting logic.

 Parallel values posted to the same
accounts.
 Parallel valuation
only supported forapproaches are currently
goods movements.

© SAP AG
5/20/2018
Course Overview Diagram III Tra nsfe r pr ic ing in sa p - slide pdf.c om
6. Posting Examples

© SAP AG
Transfer Prices Between Profit Centers
TP
TP
TP
TP
TP

© SAP AG
5/20/2018
Valuation Approaches in PCA Tra nsfe r pr ic ing in sa p - slide pdf.c om
Legal Goods movements

purchase price valuated with sale or
Group Goods movements valuated with group

cost of goods manufactured
Profit center Goods movements valuated with internally

agreed prices

© SAP AG
5/20/2018
Transfer Prices in PCA Tra nsfe r pr ic ing in sa p - slide pdf.c om
Transferpreis
150 price
Transfer
Profit center 1 150 Profit center 2
PCA
Production
Material order
120
FI/CO Parallel value flows
Logistics Quantity flow

© SAP AG
5/20/2018
Transfer Prices in PCA Tra nsfe r pr ic ing in sa p - slide pdf.c om

Internal revenue: - 150 Material
PCA Cost of sales + 120
consumption 150
Stock - 120
Production
Material order
120
FI/CO Parallel value flows
Logistics Quantity flow

© SAP AG
5/20/2018
Flexible Transfer Pricing Tra nsfe r pr ic ing in sa p - slide pdf.c om
Plant Material PrCtr Transfer price

0001 PROD1 X200 1200 DEM
0001 PROD2 X300 1500 DEM
---
Plant Prod.grp PrCtr Rec.PrCtr TP markup
0001 A X100 X200 5%
0002 B X100 X300 6.25%
-Plant
- - Product group TP markup
0001 C 5.5%
---

© SAP AG
Customizing for Transfer Pricing
Pricing procedure Condition types
Access seq.
Transfer price
Condition
tables

© SAP AG

Customizing for Transfer Pricing
Variant for transfer pricing: 0
Pricing procedure
Step Condition type From To Cond.formula
10 TP01
20 TPB1 100
30 TP02 20 20
TP01 TPB1 TP02

Calc. rule C Calc. rule C Calc. rule A
Cond.class B Cond.class B Cond.class A
Fixed price Calc. price Markup

10%
150 95

© SAP AG

Planning Valuation with PCA Cost Est.
PrCtr: X100 Material PROD-REP

FERT-REP
Plan
Planversion:
version: 001
001
Year:
Jahr: 1999
SEMI1
HALB1 1ST 400000
1unit 400000 1000,- 1000
SEMI2
HALB2 2St
2units 412000
412000 1400,- 1400
SEMI3
HALB3 1ST ‚Lief.v.anderen‘
1unit " Goods from other
3000,-.
PrCtrs" 3000
PrCtr 1 PrCtr 2
PROD-
FERT- REP
REP
TP
TP3000,-
3000
SEMI1
HALB1 SEMI2
HALB2 SEMI3
HALB3
MDC
MEK 1000 MGK
MOH800,-
800 MEK
MDC1400,-
1400 MGK
MOH500,-
500 MDC
MEK 1800,
1800 - MOH
MGK 500,
500

© SAP AG
Planning - Valuation with Transfer Prices

PrCtr: X100
Plan version: 001
Year: 1999
PrCtr PPrCtr Acct Material Plant Qty Revenue
X100
X100 X200
X300 800000
800000 REP-1 0001 10
REP-2 0001 un. 12,000
5 un. 5,000
PrCtr Receiver PrCtr Material Plant Transfer price
X100 X200 REP-1 0001 1200 USD
X100 X300 REP-2 0001 1000 USD

© SAP AG
Analysis of Profit Centers in CO-PA

Val. CoCd PrCtr Mat. Rev. Costs CCtr/Group
PCA 0001 X100 SEMI 75 70
Legal 0001 X200 PROD 100 80 70

PCA 0001 X200 PROD 120 85
Company code 0001 Company code 0002
PrCtr X100 PrCtr X200 PrCtr X300

10
CCtr
PCA 75 L 80 PCA 120 L 100
G 70 G 70
P 85 P 120
L 70 L 80
G 60 G 70
P 70 P 85
SEMI PROD

© SAP AG
Summary I
 Profit centers earn profit just like independent

companies.
 Goods movements can be valuated using
transfer prices.
 Goods movements between profit centers can

be analyzed in CO-PA.
 No internal payables/receivables are posted.

© SAP AG
Summary II
 Transfer prices are calculated using

conditions.
 Plan costs are taken from the profit center
cost estimate.
 Plan revenues are found using transfer

pricing.

© SAP AG
Course Overview Diagram IV

6. Posting Examples

© SAP AG
Parallel Valuation Approaches in FI

FI
General Ledger
Currency and
Document
Valuation Profile
Valuation Currency type
Legal
Legal Company code currency Group
Group Group currency PCA
PCA Group currency

© SAP AG
Parallel Valuation Approaches in FI-AA

IM AA
Settle
to asset
Cap. investm. order

Depreciation area
L 50 Area Cur.type
G 40 50 01 10
P 60 40 11 31
60 21 32

© SAP AG
Parallel Valuation Approaches in CO

CO CO data
Actual version 002
Actual version 001
Actual version 000
CO area currency
Object currency
Transaction currency
Currency and valuation profile

Valuation Currency type
Legal Company code currency
Group Group currency

PCA Group currency

© SAP AG
Additional Actual Versions in CO

PrCtr 1 PrCtr 2
Material Overhead
Legal 500 500 70

-300
400DEM 70
Group 400
TP 700 USD
PrCtr 600 700 70DEM
70 operational

© SAP AG
Transfer Prices in CO-PA

Profitability report:
PrCtr1
r
Internal revenues t t
i
f e
o n t
- Variable COS r e c
P c u
d
_____________________ r o
Contribution margin I P
- Fixed COS
_____________________ Company code
Contribution margin II Company code 1 Company code 2
- Overhead PrCtr1 PrCtr2 PrCtr3
L 70 L 100
... 75 G 70 100 G 70
_____________________ P 75 - + 120 P 120
L 70 L 70
G 70 G 70
Operating result
P 70
P 75

© SAP AG
Material Inventories
Material Costing
Inventory Management
Invoice Verification Legal

Group
Production Order Delivery
PrCtr
Production Order Settlement

© SAP AG
Product Cost Planning

CO-
PC
Controlling area
Material Activity Overhead Profit St.price
Legal mat. cost estimate

DEM 1000.00 100.00 100.00 1200.00 Legal 1200
Group cost estimate $330
USD 170.00 50.00 50.00 $230 $270.00
Group $270
Profit center cost estimate PrCtr $500

USD 400.00 50.00 50.00 $500.00

© SAP AG
Reporting - Group Costing

Material number Material Production Profit

+ 08123 30,000 34,400 4,400
+ 47-123548585 45,000 47,000 2,000
- 5967-0956/434 54,000 63,900 9,900
+ Company code 0001 12,500 13,500 1,000
+ Company code 0002 20,000 22,500 2,500
- Company code 0003 21,500 27,900 6,400
... Profit center PC - 1 10,000 11,000 1,000
Profit center PC - 3 9,000 15,000 3,000
Profit center PC - 5 500 900 400
Profit center PC - 9 2,000 1,000 2,000

© SAP AG
Group Costing
Company A Company B Company C Group

Group = Standard CE Group CE Standard CE Group CE Standard CE Broken down Total
DCA DCA DCA DCA
POH A FOH A POH A FOH A POH A FOH A DCB DC

DCB
P A P A DCC
P A
DCB DCB DCC POH A FOH A
POHB FOHB POHB FOHB POHB FOHB POHB FOHB POH FOH
PB POHC FOHC
P P
B B
DCC
P A
DC = Direct Costs
POH = Proportional Overhead
POHC FOHC POHC FOHC PB P
FOH = Fixed Overhead
P = Profit (Revenue ./. Full Costs)
Index A, B, C = Company A, B, C PC PC PC

© SAP AG
Example: Value-Added Chain I

GROUP
CoCd BX03, Plant WX09 CoCd BX02, Plant WX03

FINISH PrCtr X400
SEMI Production in another plant

another plant SEMI PrCtr X100
Sale = PrCtr transfer : 800 DM
Stock transfer
RAW 1 Sale:
Sale: 300DM RAW 1
PrCtr transfer : 240 DM
PrCtr transfer : 200 DM
RAW 2 PrCtr X300
Legal sale price

Markup: 20% on m aterial
Profit center transfer price

© SAP AG
Example: Value-Added Chain II

5/20/2018
GROUP
Tra nsfe r pr ic ing in sa p - slide pdf.c om
S56_P-100 CoCd BX03, Plant WX09 CoCd BX02, Plant WX03

FINISH Material Activity Overhead Profit PrCtr Profit CoCd Price M L
(L) US$ 400,00 50,00 40,00 490,00
(G) DEM 350,00 300,00 124,00 206,00 206,00 774,00 PrCtr X100
(P) DEM 800,00 100,00 80,00 980,00 S56_100-400
S56_100-400 SEMI Material Activity Overhead Profit PrCtr Profit CoCd Price ML
SEMI Material Activity Overhead Profit PrCtr Profit CoCd Price M L
(L) DEM 450,00 200,00 44,00 694,00
800 DM (G) DEM 350,00 200,00 44,00 90,00 100,00 594,00
(L) US$ 400,00 400,00
(G) DEM 350,00 200,00 44,00 206,00 206,00 594,00 (P) DEM 440,00 200,00 44,00 684,00
800 DM
(P) DEM 800,00 800,00 S56_100-431
S56_100-431 RAW 1 Material Activity Overhead Profit PrCtr Profit CoCd Price ML
RAW 1 Material Activity Overhead Profit PrCtr Profit CoCd Price M L (L) DEM 300,00 300,00
(G) DEM 200,00 40,00 100,00 200,00
(L) US$ 100,00 100,00 300 DM
(P) DEM 240,00 240,00
(G) DEM 200,00 200,00
(P) DEM 200,00 200,00 240 DM
S56_100-120
200 DM
PrCtr X400 RAW 2 Material Activity Overhead Profit PrCtr Profit CoCd Price ML
(L) DEM 150,00 150,00
(G) DEM 150,00 150,00
(P) DEM 150,00 150,00
Legal sale price PrCtr X300

Markup: 20% on m aterial
Profit center transfer price

© SAP AG
Purchasing and Sales

Company A Company B
Goods issue Stock transfer

order
Goods receipt
Invoice issue
IDOC Invoice receipt
PrCtr1 PrCtr 2
100
L 70 120
L 100
G 70 G 70
P 75 P 120

© SAP AG
Pricing in SD
 Which conditions are required?
 Revenue conditions for all valuation approaches in the system
 Cost conditions for the valuation approaches used in CO-PA
 The following conditions are delivered with the standard SAP

system:
 KW00 Revenues/Costs in the Group Valuation Approach
 PC00 Revenues in the Profit Center Valuation Approach
 PCVP Costs in the Profit Center Valuation Approach

© SAP AG
Pricing in SD
 Group Valuation  PCA Valuation

 KW00 Revenues/Costs  PC00 Revenues
Type b, statistical Type c, statistical
 PCVP Costs
Type h, statistical
 Type h reads the material ledger price i n the profit center valuation
 Type c performs pricing for the profit center valuation
 Type b reads the material ledger price i n the group valuation
 Up to and including Release 4.5, no conditions of type b were transferred to

CO-PA. Group costs of goods manufactured are transferred to CO-PA from
the corresponding costing or from a user exit

© SAP AG
Posting Example
Sale between companies within the group

FI Goods receipt
Goods issue
Stock GR/IR
Goods usage Stock L 80 L 80

L 50 L 50 G 40 G 40
G 40 G 40
Invoice receipt
Billing document GR/IR
Receivables Revenues L 80
L 150 L 130 G 40
G 150 G 40 Input tax Vendor
L 20 L 150
IC profit acct Sales tax G 20 G 150
L L 20
IC profit acct Price diff.
G 90 G 20
L L 50
G 90 G
L - Legal
G - Group

© SAP AG
Account Categories
FI
Accounts with parallel valuation
Revenues Stock Usage Price diff.
L 130 L 50 L 50 L 50
G 40 G 40 G 40 G
GR/IR Change in stk Expense
L 80 130 L 50 L 50
G 75 40 G 40 G 40
Accounts without parallel valuation
Receivables Input tax Sales tax Vendor
L 130 L 20 L 20 L 150
G 130 G 20 G 150
G 20
Clearing accounts
VAC
L 150
G 150

© SAP AG
Summary I
 Parallel valuations in FI follow the same logic as

the parallel currencies.
 No influence on posting logic.

Parallel values posted to the same accounts.
 Additional accounts only required for:
- Clearing of payables and receivables
- Internal revenues and costs

© SAP AG
Summary II
 In FI-AA the parallel valuations are stored in
different depreciation areas.

 In CO the parallel valuation approaches are stored
in separate ‚actual versions‘.
 The additional actual versions are stored in the
system as ‚delta versions‘.

In CO-PA
stored legal andledgers.
in separate profit-center valuation are
 In CO-PA group valuation is stored in the legal

ledger in separate value fields.

© SAP AG
Restrictions I
 Transfer prices currently can only be used for

goods movements.
 FI-AA can only store those valuation approaches

that are active in FI as well.
 Group costing is only possible within one
controlling area.
 Parallel valuation approaches are only possible
within one controlling area.
 No parallel valuation approaches for unvaluated
sales order stock.

© SAP AG
Restrictions II
 WIP at targets does require the legal valuation as

the operational one.
 WIP at targets will only be calculated in the

operational valuation.
 Parallel valuation approaches are only possible

with invoice verification in Logistics.
 Automatic invoice receipt for cross-company

processing uses EDI, even within the same
system.

© SAP AG
Course Overview Diagram VI

6. Posting Examples

© SAP AG
Scenarios
Profit Center Accounting PCA

Cur.
PrCtr
Cur. Cur. Cur.

Leg. CO- Leg. CO- Leg.
OM PA
FI Cur. Cur. Cur.
Grp CO- Grp Grp
PC
Cur. Cur. Cur.
FI- AA
AA Operational
PrCtr PrCtr PrCtr
Material Ledger Cur. Cur. Cur.

ML
Leg. Grp PrCtr

© SAP AG
Conventions for Representing Postings

PCA
Additional
posting lines in
V Int. change in stock Profit Center
A
Accounting
L
U
E FI Postings in FI CO- CO-
OM PA
L = Legal Update
G = Group in
F P = PrCtr CO- CO
L PC
Account
O
W
Process
and Process
data

© SAP AG
Example of a Posting in Release 3.0

5/20/2018 Tra nsfe r pr ic ing in sa p - slide pdf.c om PCA
Consumption
L 60
V
A
L
U
FI CO- CO-
E OM PA
F Consumption CO-
L L 60 PC
Consumption
O Stock L 60
W L 60
Process Consumption for

and
data production order

© SAP AG
Material Withdrawal for a Production Order

5/20/2018
PrCtr 1 Transfer price = 150
PrCtr 2 PCA
Int. change in stock Internal revenues Consumption

V P 120 P 150 150
A
L
U FI
CO- CO-
E OM PA
Consumption
L 100
F G 80 CO-
L P 150 PC Consumption
Stock L 100
O
L 100 G 80
W G 80 P 150
P 120
Process Consumption for PrCtr 2

and
data PrCtr 1 production order

© SAP AG
Activity Allocation for a Production Order

PCA
5/20/2018 PrCtr 1 Tra nsfe r pr ic ing in sa p - slide pdf.c om
PrCtr 2
Int. activity alloc. Int. activity alloc.

V P 600 P 600
A
L
U CO-
FI CO-
E OM Int. activity alloc. PA
L 600
G 600 CO-
F P 600 PC
Int. activity alloc.
L
L 600
O
G 600
W P 600
Process PrCtr 1 Activity PrCtr 2

and
data allocation

© SAP AG
Results Analysis and Settlement of WIP

Change WIP
V
P 750
A
L CO-
CO-
U OM
PA
E
FI Balance WIP CO-
L 700 PC
G 680
F P 750 Production costs
L 700
L
Change WIP G 680
O L 700 P 750
W G 680
P 750
Process Results analysis,

and
data WIP settlement FI document

© SAP AG
Delivery to Stock Within the Same Plant

Factory output
V Costs
P 600,-
A P 750
L
U
E FI CO- CO-
Stock PA
OM CO-
L 500 PC
G 400
F P 600 Factory output Costs
L L 500 L 700
Factory output
O G 400 G 680
L 500
W P 600 P 750
G 400
P 600
Process Delivery
and
data to stock

© SAP AG
Stock Transfer Between Profit Centers

5/20/2018 Transfer price = 100
PrCtr 2 PCA
PrCtr 1
Int. change in stk Goods from PrCtr
V P 60 P 100
A Internal revenues Int.change in stk

100 100
L P P
U FI
E Stock CO- CO-
OM PA
L 80
F G
P 40
90 CO-
L PC
O Stock Price diff.
W L 50 L 30
30
G 40
60 G
P P 10
Process
and Plant1
PrCtr 1 Stock transfer Plant2
data PrCtr 2

© SAP AG
Primary Posting to a Cost Center

PCA
Expense
V
P 200
A
L
U
E FI CO- Expense
CO-
Expense OM PA
L 200
L 200
G 200
F G 200 P 200
L P 200
Vendor CO-
O
PC
L 200
200
W
G 200
200
P 200
200
Process Primary posting

and
data to cost center

© SAP AG

1. Introduction
Time: 30min.and Definition of Terms
• Strategic Enterprise Control
•• Paralle Valuation
Definition of TP Approaches
• Transfer Price in R/3
• Example 1 without values
• Example 2 with values

© SAP AG


Time: 1 hour/ Exercise 30min
• Quantity and Value Flow

• Concept of Parallel Valuation
• Currency & Valuation Profile
Demo1: All settings IMG
• Activating C&V
Demo2: Activation Explain the check
• Scenarios
• Example 1 Group
• Example 2 PCA
? Demo3: Overview of the settings in various
applicsations
• Summary
Exercise 1 Time 30min
Check the TP Settings in IMG

© SAP AG

Transfer Prices from the Viewpoint of PCA

3.
Time: 1 hour / Exercise 30 min.

• TP between PrCtr
• Valuation approaches in PCAtion
• TP in PCA Example
• TP in PCA ( with accounts)
• Flex. TP-Def.
Demo1: Define Price Dependendies(Condtion Tables)
• Customizing TP (Buttom up)
Demo2: Show all parts(Access seq.,...)
• Customizing TP (Top down)
Demo3: S56_100-120 WX03 --> WX04
• Planning using Cost estimate
• Planning with TP
Demo4: IMG PCA-->Planning-->Goods move.
• Analysis of PrCtr in CO-PA
• Summary
Exercise Stock transfer within one company

© SAP AG

Transfer Prices in the Various Applications
4.
4.
4.1 Finacial Accounting
4.2 Asset Accounting
4.3 Controlling
4.4 Product Costing
4.5 Cost object Controlling
4.6 Profitability Analysis
4.7 Procurement and Sale

© SAP AG

4.1 Finacial Accounting

Time 20 min
• Parallel Valuation Approaches in FI

Demo1: IMG Additional local currencies
Demo2: Goods receipt

501; S56_100-431; WX03; 10pc

© SAP AG

4.2 Asset Accounting

Time 30 min
• Parallel Valuation Approaches in AA

© SAP AG

4.3 Controlling
Time

© SAP AG

4.4 Product Costing

Time

© SAP AG

4.5 Cost Object Controlling

Time

© SAP AG

4.6 Profitability Analysis

Time

© SAP AG

4.7 Procurement and Sale

Time
© SAP AG

Course Overview Diagram I: Introduction and Definition of Terms

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Course Overview Diagram I: Introduction and Definition of Terms

Uploaded by

Copyright:

Available Formats

Course Overview Diagram I

1. Introduction and Definition of Terms

2. Fundamentals of the Transfer Pricing Solution

3. Transfer Prices from the Viewpoint of PCA

4. Transfer Prices in the Various Applications

5. New Functions in PCA

Strategic Enterprise Control Tra nsfe r pr ic ing in sa p - slide pdf.c om

America Europe/Africa Asia

 Legal view - that of the independent legal companies

Parallel Valuation Approaches

Group view Legal view Profit center view

http://slide pdf.c om/re a de r/full/tra nsfe r-pr ic ing-in-sa p 3/73

Definition of a Transfer Price Tra nsfe r pr ic ing in sa p - slide pdf.c om

A transfer price is a price used to valuate the transfer

of goods and services between independent

http://slide pdf.c om/re a de r/full/tra nsfe r-pr ic ing-in-sa p 4/73

Transfer price from the group viewpoint = group production costs

http://slide pdf.c om/re a de r/full/tra nsfe r-pr ic ing-in-sa p 5/73

Parallel Valuation Approaches Tra nsfe r pr ic ing in sa p - slide pdf.c om

Raw Cost center

http://slide pdf.c om/re a de r/full/tra nsfe r-pr ic ing-in-sa p 6/73

Parallel Valuation Approaches Tra nsfe r pr ic ing in sa p - slide pdf.c om

Company code 1 Company code 2 Company code 3

Course Overview Diagram II Tra nsfe r pr ic ing in sa p - slide pdf.c om

1. Introduction and Definition of Terms

2. Fundamentals of the Transfer Pricing Solution

Transfer Prices from the Viewpoint of PCA

5. New Functions in PCA

http://slide pdf.c om/re a de r/full/tra nsfe r-pr ic ing-in-sa p 8/73

Quantity and Value Flow Tra nsfe r pr ic ing in sa p - slide pdf.c om

Profit center 1 Profit center 2

Company code currency

Material Cur. Cur. Cur.

Profit Center Accounting

Financial Accounting Controlling

Cur. Cur. Cur.

Material Ledger ML Cur.

Profit Center Accounting

Financial Accounting Controlling

CO- Cur. CO- Cur.

Profit Center Accounting

Financial Accounting Controlling

CO- Cur. CO- Cur.

 Parallel value flows throughout all of

 Inventory is valuated using all active

 Inventories of one material in one plant

 No influence on posting logic.

1. Introduction and Definition of Terms

2. Fundamentals of the Transfer Pricing Solution

3. Transfer Prices from the Viewpoint of PCA

4. Transfer Prices in the Various Applications

5. New Functions in PCA

Legal Goods movements

Group Goods movements valuated with group

Profit center Goods movements valuated with internally

FI/CO Parallel value flows

Logistics Quantity flow

Profit center 1 Profit center 2

FI/CO Parallel value flows

Logistics Quantity flow

Plant Material PrCtr Transfer price

Pricing procedure Condition types

http://slide pdf.c om/re a de r/full/tra nsfe r-pr ic ing-in-sa p 25/73