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Transfer Pricing without Material Ledger

Former Member
0 Kudos

Hi Experts,

We have the following requirement from our client.

Within one company code they have multiple plants and each plant is Profit Center. Output of one plant is used as input of next plant for production. This is a continuous process.

Client wants to transfer the material from one plant to another plant at markup price instead of valuation price available in the material master.

Also he wants to have reports as below:

1) Profit Center wise Balance sheet and Profit & Loss Account is required at transfer price value

2) At company code level, margin (Difference between Transfer price and valuation price) needs to be eliminated to arrive at correct profit and generate Balance Sheet & Profit & Loss Account.

Please let us know, if this can be acheived without activating Material Ledger.

Thanks & Regards

Gopi Chand

Accepted Solutions (0)

Answers (3)

Answers (3)

former_member188826
Active Contributor
0 Kudos

You may want to explore using additive cost in those plants which receives the material, with an added portion of markup.

udo_werner
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi,

I would say you should use material ledger with parallel valuation. only that would provide you the legal view (without the intracompany profits) parallel to the profit center view which would show the margins out of the sales betwen profit centers.

That does not mean you have to activate actual costing. You can stick to standard or moving average pricing and use material ledger only as the carrier for the parallel valuation approaches.

I don't see a reason why you are searching for an alternative solution.

best regards,

Udo

Former Member
0 Kudos

Hi,

You can maintain transfer prices of the material for the plants...

Check tcodes 8KEZ, 0KEK, AKE5

also check

Regards

Sudhakar Reddy

Former Member
0 Kudos

Hi,

We tried the above transactions. But it is not working.

Can any one suggest the solution.

Thanks & Regards,

Gopi Chand