Transfer pricing is a widely used functionality which sets a price between affiliated entities. It is typically setup for cross border transactions and need to conform with the tax laws in the respective countries. However, in SAP Transfer Pricing can also be set up between profit centers (and plants). In this regard it is used as an internal mechanism that treats every transfer between profit centers as a sale and helps facilitate full management reporting by a plant, or group of plants.
Attend this live Q&A with FI/CO expert Paul Ovigele, to learn the following:
What needs to be set up for Transfer Pricing between Profit Centers?
How is standard cost calculated for Profit center Transfer Pricing?
How does a Transfer Pricing Posting look in the profit center View?
What are the options to convert to Profit Center Transfer Pricing in S/4 HANA?