Background:

1. For all Boyd Asia site, we use PAC (Perpetual Average Cost) cost method, the unit cost will
vary when there is any new receiving transaction.
2. The transfer order price derive logic is unit cost in the source organization plus markup, then
convert to USD.
Note: Currently, the markup percentage is based on the item cost category. For example, 10
for FGOODS/SEMI and 5 for RAW.

Issue:
Currently, the report shows the unit price from transfer order when create transfer order. There are
2 price issues:
1.If there is no unit cost in the source organization when create transfer order, the unit price in the
commercial invoice report shows blank with wrong currency (Ledger currency in the Destination
Organization). Even we run costing process and initiate the unit cost before shipment, the unit
price in the report still shows blank with wrong currency.
2.Even the unit cost is not zero in the source organization, the unit cost may be different between
the transfer order creation date and transfer order shipment date. The unit price in the report will
only show the price base on the unit cost of the transfer order creation date. However, the IC AR
invoice will be created after the transfer order ship confirm, and the unit price is based on the unit
cost of the transfer order actual shipment date. So the unit price maybe different between
commercial invoice and IC AR. We need to show the unit price in the commercial invoice same as
the IC AR price after ship confirm.

Please see below TO:50009, Shipment:2550227

When create the TO, there is no unit cost in KR cost book, so the transfer price is 0 and currency
is JPY (The ledger currency in the destination organization)
Commercial invoice:

Change Requirement:
Please change unit price derive logic to below calculation formula to convert to USD currency if
the source organization ledger currency is not USD:
Note:
1. We must show the currency as USD in the commercial invoice for transfer order.
2. Please change the report parameter: Shipment LOV logic: For transfer order, the shipment
number can only be selected after TO ship confirm, not after pick release
A * B / C: (Please round to 4 decimals)
A: Item unit cost in the ship from organization with the Effective Cost Date >=Ship confirm date
Please use WND.ACTUAL_SHIP_DATE to derive the shipment date and compare the item
effective cost date.
WND:WSH_NEW_DELIVERIES

B: Markup percentage: the percentage is based on the item cost category. For example, 10 for
FGOODS/SEMI and 5 for RAW. Since the percentage may change in the future according to the
source organization and destination organization combination. One option is to follow below
percentage derive logic:
Manage Financial Orchestration Flows:
Business Process Type = Internal transfer

Find the Financial Orchestration Qualifier base on the ship from/to organization combination and
item cost category.

Get the transfer pricing rule and get the Markup Percentage from the pricing rule
Note: If the percentage derive logic is too complicated, we need to consider other easy way. For
example, maintain the source organization, destination organization, item category and percentage
in one user defined lookup code.

C: Exchange Rate on the date with exchange rate type: Corporate. The date is pick release
date/pick slip confirm date/ship confirm date.
Please use the WND.ACTUAL_SHIP_DATE to derive the date

Note: If we use the From currency: USD, then the formula is A * B / C. If we use the TO
Currency: USD, then the formula is A * B / C.

Please see below one Transfer Order example to derive the transfer price:
Item: JE01938-AA520RB, transfer order 51004 from JP to KR:
The unit cost in the JP organization is: 50.150 JPY

Item Cost category is: RAW

Manage Financial Orchestration Flows:

The percentage is 5

Actual ship date is: 2/6/2023

Exchange rate (USD – JPY): 131.101

Exchange rate (JPY – USD): 0.0076277068824799200616318716104377541

The transfer price:

A * B / C = Unit Cost 50.150 * (1 + 5(markup)/100) / 131.101
= 50.150 * 1.05 / 131.101
= 0.401655975
= 0.4017 (Round to 4 decimals)

If use JPY-USD exchange rate: 0.0076277068824799200616318716104377541

A * B * C = Unit Cost 50.150 * (1 + 5(markup)/100) *
0.0076277068824799200616318716104377541
= 50.150 * 1.05 * 0.0076277068824799200616318716104377541
= 0.401655975
= 0.4017 (Round to 4 decimals)

Same as the unit price in the IC AR