Transfer Pricing INTRA and INTER company Detail Cost estimate calculation.

Transfer Prices Intra Company – Within the company code under different plant and Profit Center.

Scenario-1: - Production Level – RM Material to SFG/FG Material transfer price and both profit center
should be different under one plant under one company code.

Material Code Profit Center Plant Markup

Raw Material PNRJ-TRAN-PRICE-RM PNRJ-RM PNR1
FG Material PNRJ-TRAN-PRICE-FG PNRJ-FG PNR1 10%

Markup updated Sending material and receiving plant profit center combination.

Released Standard cost estimate

Legal View with Cost Component structure.

Document is created by Pruthviraj Raj Lead SAP S4 HANA FICO Consultant +919824745807
Transfer Pricing INTRA and INTER company Detail Cost estimate calculation.

Group View with cost component structure.

Cost of goods sold bifurcation with delta profit center 28.92 + 1.03 Markup on RM Cost 10.30 = 29.95

Document is created by Pruthviraj Raj Lead SAP S4 HANA FICO Consultant +919824745807
Transfer Pricing INTRA and INTER company Detail Cost estimate calculation.

Profit Center View with Cost component structure.

Hear markup add on COGM/COGS in profit center view with add material cost 10.30+1.03 =11.33

Document is created by Pruthviraj Raj Lead SAP S4 HANA FICO Consultant +919824745807
Transfer Pricing INTRA and INTER company Detail Cost estimate calculation.

Create Production Order

Confirmation of Activity and GI and GR against order.

RM Consumption accounting

Profit Center Valuation RM Cons. Dr 135.60

Inventory Cr -123.60
Mark up Cr -12.36 123.60-123.96
Note :- I have not implemented document splitting else profit center Zero balance entry trigger.

Document is created by Pruthviraj Raj Lead SAP S4 HANA FICO Consultant +919824745807
Transfer Pricing INTRA and INTER company Detail Cost estimate calculation.

Scenario-2: - Stock transfer level – SFG / FG material transfer between the different plant / Profit center
Under one Company Code.

Material Code Profit Center Plant Markup

FG Material PNRJ-TRAN-PRICE-FG PNRJ-FG PNR1
FG Material PNRJ-TRAN-PRICE-FG PNRJ-P3 PNR3 20%
O selling plant.

Note: - Create Special procurement type in plant PNR3 for link for transfer material from Mfg. Plant to

Shipping plant.

Legal Valuation

Group Valuation

Material = 10.30 @10% 1.03 RM MARK UP FG Material 29.95 @20% 5.99 MARK UP = 1.03+5.99= 7.02.

Document is created by Pruthviraj Raj Lead SAP S4 HANA FICO Consultant +919824745807
Transfer Pricing INTRA and INTER company Detail Cost estimate calculation.

Profit Center Valuation

Transfer Prices Inter Company – Different company code with different plant and Profit Center.

Material Code Profit Center Cocode/Plant Additive Cost

FG Material PNRJ-TRAN-PRICE-FG PNRJ-FG PNRJ/PNR1
FG Material PNRJ-TRAN-PRICE-FG PNRJ_P2 PNR2/PNR2 100

Additive coat Receiving Plant level update.

Document is created by Pruthviraj Raj Lead SAP S4 HANA FICO Consultant +919824745807
Transfer Pricing INTRA and INTER company Detail Cost estimate calculation.

Legal View COST + ADDITIVE COST.

Document is created by Pruthviraj Raj Lead SAP S4 HANA FICO Consultant +919824745807
Transfer Pricing INTRA and INTER company Detail Cost estimate calculation.

Group Valuation

Document is created by Pruthviraj Raj Lead SAP S4 HANA FICO Consultant +919824745807
Transfer Pricing INTRA and INTER company Detail Cost estimate calculation.

Profit Center Valuation

Document is created by Pruthviraj Raj Lead SAP S4 HANA FICO Consultant +919824745807