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Tracking GROUP Cost in LOCAL Currency for FLASH Title Sale without Goods Movement

former_member643832
Discoverer
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1,017

Well, the title should say it all but here is the situation.

Customer is on S/4HANA, Material Ledger is active, BUT multiple valuations are not activated. In any event, the scenario below does not have material movements, so that's a moot point. the process steps are as follows:

  1. A Limited Risk Distributor (LRD) in France creates end customer sales order. The SO is in local currency EUR
  2. LRD is controlled by a Principal in Switzerland (Swissco) which will ship the goods to the end customer as drop ship. The Swissco will post a GI in their books
  3. Behind this drop ship, there will be an Intercompany billing triggered which will post as “Flash Inventory” in France LRD – no goods movements, just SD billing document that posts to FI IC AR
  4. The IC billing will be in Group Currency (USD)
  5. The cost breakdowns are as follows:
  1. MFG Cost – $ 100 (manufacturing entity)
  2. Swissco Cost: MFG Cost ($100) + Cost Plus Mark Up to manufacturing entity @3% (#3) = $103
  3. Swissco Billing to LRD: Swissco Cost ($103) + Swissco mark up @3% = $106.09
  4. LRD to End Customer Billing: LRD Cost ($106.09) + LRD margin @20% = $127.31
  • Currently, as there is no goods movement posted during step 3 above, the material documents do not get generated. Hence, there is no “price” on the material master. The transaction is purely financial
  • The flash inventory sales are posted as SD billing documents for all three types of Transfer Pricing – Cost Plus, Resale Minus and Fixed Price
  • The capturing of IC margin (MFG to Swissco and Swissco to LRD) is not consistent – depends on the TP method and also specific IC relationships
  • Given that the flash inventory postings are not goods movement supported, the customer is looking for a way to capture GROUP COST in LOCAL CURRENCY
  • There are also situations wherein the IC sale (Swissco to LRD France) was posted but the end customer billing did not happen. In such cases, if the group cost is not explicitly captured in the billing document/ condition types and posted to a separate account, backing out the “IC margin” during period end becomes a challenge
  • I am looking for a rather quick answer to points 9 and 10 above. Can someone turn this around quickly?

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