Intercompany Process

[Former Member]

Hello,

we have a requirement here for the intercompany pricing, our system picks up the Intercompany sales price from the material master for a particular plant level and if we update that it will affect the other process.

For eg. We have a material defined in plant 1000-Sales Org 1100 Distr. Channel 10 with price 100, I want to know if we can have the same model defined at plant 1000- Sales Org 1100 Distr. Channel 20 with price 200.

Thanks!

Raj

[Former Member · Accepted solution]

HI Raj Kumar,

The intercompany pricing you can setup the pricing records for specific plants. So in place of maintaing the pricing from material master you need to pick prices from condition records, and these condition records are maintained for material/plant and sales area and are defined at the highest level in access sequnce. So the steps would be, to enable intercompany condition type and to change access sequnce for a table which has material/plant and sales org as its fields. And to make this pricing condition as part of your pricing procedure for intercomany process.

Hope this helps,

Abhishek

[Former Member]

Hi Raj,

Intercompany pricing is never depending on the sales price or base price that is offered to the end consumer / customer. The base price on which all the calculations are done in intercompany transfers is called Transfer Price Invoice.

Generally for transfer price the standard price from Material Master Accounting View is picked up. Then the intercompany margin condition record will add a markup to it.

e.g. Sales price X = 1000 USD

Cost Price X = 350 USD

Intercompany markup between A and B Company = 30%

Then the transfer price between A and B will be 350 X 1.3 = 455 USD and not 1000 X 1.3 = 1300 USD.

Hence now your requirement of having different prices are sales org level can be achieved by having different markup for different sales org and hence different transfer price.

Hope this helps. Reward accordingly.

Kind regards

sandeep