Hi Experts
Would like to pick up on expert opinion.
Background - Client is already on SAP with following setup with One legal entity having two physical plant (Operations and Sales). These are created under 2 separate co.codes due to showing of profitability of operations plant with Intracompany (IC) Revenue rather than just COGS. Transfer Price in PCA is currently not active and client has IC sales process with IC price condition type.
Now they are extending to other country and want to use same setup of 2 co.codes (one for Operations & other for Sales) to show separate profitability for both plants.
Since activating TP in PCA will be a challenge right now in live system with all other company code process to be changed, our suggestion is to have a separate PC & CC group to differentiate cost and operations plant should not show sales revenue as when doing outside reporting, both company codes will be merged as one legal entity and the overall COGS & Sales will be accordingly.
The other problem is for Cost absorption and Other cost which are not in standard.
Can you please share your opinion on:
what the client might miss out if they continue with 2 co.code approach?
what are pros/cons of both scenarios?
Is TP in PCA activation is the best and only way to show profitability and defining GL for internal goods movement and internal revenue as STO will not create GL entry?
Thanks in advance
A
Bluesky
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