Setting Up Transfer Pricing between Company Codes

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. In SAP, Material Ledger can be used to enable multiple Valuation Views that can include or exclude the impact of transfer pricing and intercompany profit. In this regard it is used as an internal mechanism that treats every transfer between different company codes as is they occurred within the same entity, by eliminating intercompany profit and reporting in a common currency.


Watch this recorded webcast with FI/CO expert Paul Ovigele, to learn the following:


- What needs to be set up for Transfer Pricing between Company Codes?
- How is standard cost calculated for Profit center Transfer Pricing?
- How does a Transfer Pricing Posting look in the Group Valuation View?
- How is profit in Inventory identified in an Intercompany Posting?
- What changes have been made to the Transfer Pricing process in S/4HANA?