on 05-07-2008 9:45 AM
Hi Good after noon to u all ..can some one thriugh some light on Transfer price and exchange rate..pls.
chaco reddy
Hello,
Transfer Price:
Manages transfer prices, which support organizations that divide tasks among different organizational units by valuating the goods and services exchanged between these units. Aids particularly large corporations that are often divided into a number of independently operating divisions or companies that exchange large quantities of goods and services with one another. Lets transfer prices be used for controlling corporate units as the division of labor between internationally operating units increases, value-added chains become more complex and responsibilities become more decentralized. Valuates the exchange of goods and services using transfer prices, to significantly influence the actual success of corporate divisions or profit centers. Helps today's accounting systems provide decision support that represents operational results from different points of views and using different currencies.
Exchange Rates:
Exchange rates are required to:
Translate foreign currency amounts when posting or clearing or to check an exchange rate entered manually
Determine the gain and loss from exchange rate differences
Evaluate open items in foreign currency and the foreign currency balance sheet accounts
The exchange rates are defined by period ("valid from").
REWARD POINTS IF HELPFUL
Regards
Sai
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