Two plants with different currencies and different standard cost - Tracking mark up, PPV and FX

[former_member212723]

Would like to hear from on what system solutions are used for the following scenario

Plant A - USD Standard Cost
Plant B - BRL and Standard cost includes transfer price mark up as it purchases from Plant A
Standard STOs are used for inventory transfers and transfer price mark up is included in the transactions. As the currencies are different, standard cost is different and timing of GI versus GR could be different, there is always PPV and FX gain/loss in the transactions including the mark up.

Wondering what solutions are used by others to track these Intercompany related activity into different GL accounts as well as aid in eliminations of the mark up and profit in inventory in the consolidations.

[taromiyanishi]

Hi

Only two currencies are relevant for costing and these are company code currency or object currency (CoCode) and controlling area currency (CoArea) so I believe the plant B is in different company code

Firstly you need to activate the Cross-company code costing against the costing variant - OKYV with Special procurement key to be assigned in Material Master to enable the transfer of cost + cost component split between plants. As per OSS note 2235359, additional quantity-related costs such as mark-up can be achieved by additive costs or process cost, but if mark-up is to be calculated as a percentage of product value, it need overhead rates, which would necessitate the BADI SUR_STOCK_TRANSFER_CK .

Hope that this helps Taro