Stock Transfer - with margine price

[Former Member]

Dear friends,

While transfering stock from one profit center (of one plant) to another profit center (of another plant) a profit margine is charged againest 2nd profit center.

And here each product line is taking as each profit center.

But the price difference is posting in a Dummy profit center.

how it is rectified? i want to post that price difference also to transfer/transferee profit center(s).... please help me

Thank you in advance,

[Former Member]

Hi

I have answered this in one of other questions as under :

I assume your question is - how to remove the price difference posting to correct profit center.

I think following settings were done in your system

1. Valuation of material at plant level

2. Stock transfer posting is direct entry - through Stock transfer posting in MM

Because of Point 1 - the difference is calculated and posted to Dummy.- You have got the option to value it at company code level irrespective of plants.

Request to change the procedure in Point 2 to two level transactions.

a. Post the stock transfer through SO- and post to stock in transit as first entry

b. Post the receipt offsetting through PO - offsetting the stock in transit entry. This should ensure the price difference correctly posted.

-

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In this question the margin is added in stock transfer :

In PCA we can activate Legal valuation and manage through simple GL accounts using - Inter plant Profit/Loss GL account where we can post the margin at the time of transfer by selling plant and charge off at the time of receipt by second plant as mentioned in above two level transactions

(AS I COULD NOT load excel file - i have given below the copy of sending Plant and Receiving plant accounting

Sending Plant

Regarding excise and Stock valuation price std/mva to see at Plant level

Product Process Accounting

Raw Material 1.Transfering from A to B

Sending the material Inter-Divn-RM_GIT Dr

with a Challan/ Debit noteu2026.. Raw material- Inventory Cr

2.Selling from A to B with a Profit margin

a. Sending the material Raw material cons on Sale IDT Dr

with a Challan Raw material- Inventory Cr

b. Bookinf of IDT Invoice or Debit note IDS Customer- B Dr

Raw material - Sale- IDT Cr

Profit on IDT transactions Cr

Finished Goods 1.Transfering from A to B

Sending the material Inter-Divn-FG_GIT Dr

with a Challan/ Debit noteu2026.. Finished Goodsl- Inventory Cr

2.Selling from A to B with a Profit margin

a. Sending the material COGS - IDT Dr

with a Challan Finished Goodsl- Inventory Cr

b. Bookinf of IDT Invoice or Debit note IDS Customer- B Dr

FG-Sale - IDT Cr

Profit on IDT transactions Cr

Services / Expenses 1.Transfering from A to B

Only after getting the approval, with the document number of posting , Account posted IDS Customer- B Dr

Expenses Cr

TO BE Process Recommended as under Expenses (Receiving Divn- CCtr) Dr

Expenses (Sending Divn- CCtr) Cr

Receiving Division

Regarding excise and Stock valuation price std/mva to see at Plant level

Process Accounting

On receing material Raw material- Inventory Dr

with a Challan/ Debit noteu2026.. Inter-Divn-RM_GIT Cr

a. Receiving the material Raw material- Inventory Dr

with a Challan Profit on IDT transactions Dr

GR/IR IDT A/c Cr

b. Booking of IDT Invoice or Debit note GR/IR IDT A/c Dr

IDT Vendor - A Cr

On receing material Raw material- Inventory Dr

with a Challan/ Debit noteu2026.. Inter-Divn-FG_GIT Cr

a. Receiving the material Raw material- Inventory Dr

with a Challan Profit on IDT transactions Dr

GR/IR IDT A/c Cr

b. Booking of IDT Invoice or Debit note GR/IR IDT A/c Dr

IDT Vendor - A Cr

On Receiving the advice Expenses Dr

IDT Vendor - A Cr

[Former Member]

Dear Murali,

I have read your above reply. I believe you have sound understanding on the area of Transfer Pricing which I would like to understand better how it works in SAP. Im consciously aware that i have a long list of questions, but I'm really pinning high hopes on you to answer to my questions as Im still confused after doing much reading. Please render your kind assistance on the following questions I have on Transfer Pricing.

Currently we are having a Production Profit Center selling to a Selling Profit Center at a neogotiated price. Thus we would like to activate Transfer Price in Controlling and Material Ledger to document internal revenue, internal costs and changes in stock in each Profit Center.

I would really like to clarify the following questions after reading so much from everywhere:

Activation of Transfer Price

1) The Currency & Valuation Profile has to be maintained.

As we are interested in activating the Profit Center Valuation View in Material Ledger to store the transfer price in company code currency, we will need to create a new Currency & Valuation profile as the Company Code Currency + Profit Center Valuation here. Is this correct? Is there a need to create the valuation profile for Company Code Currency + Legal Valuation?

2) Assignment of Currency & Valuation Profile to Controlling Area

If we have 2 profiles such as Company Code Currency + Profit Center Valuation and Company Code Currency + Legal Valuation, how are we to assign only a single profile to the Controlling Area? Or is it possible to assign 2 profiles to the Controlling Area?

3) Create Versions for Valuation Methods

As we are using Transfer Prices, SAP Help says we specify "Operational Actual Version 000" for the valuation which becomes the leading valuation in CO. How do we do this in the configuration?

4) Define Valuation Clearing Account

The transfer price is actually used between 2 Profit Centers within a Company Code. Thus is the defination of Valuation Clearing Account applicable in our case? From the postings that I saw from your above reply regarding the recognition of AR/AP from both Profit center, is it here or other area where we config for such posting?

5) To assign additional Postings in PCA for Internal Goods Movement

Are the GL Account postings that you displayed in your above reply configured here? Do you encourage to use Valuation Grouping Code?

6) To assign additional Postings in PCA for Production Variance

Since we have a Production Plant, does that mean we would have to assign GL Accout Postings to account for Production Variance?

7) Define Special Handling for Internal Goods Movements

If possible, kindly enlighten for what kind of expenses or situation we should use this?

Activation of Material Ledger

1) Can we use the Standard ML as we will only be using the company code currency where in the Controlling Area, we are using Controlling Area Currency. For both The Co Code Currency and Controlling Area Currency is the same currency (SGD). Thus in this case, the ML will adopt the currency type from FI and CO?

2) To allocate the transfer price, we will need to create pricing conditions and access sequence.

Also we should be using the Actual Transfer Price Variant 000 for actual postings, is this reasonable?

3) Where do we store the transfer price in the Material Ledger (Material/Profit center)?

4) When the STO is created, based on the Material/Profit Center, will the STO automatically retrieve the price from the ML? Can the price be overwritten in the STO?

I really appreciate your help and time, Murali!

Best Regards