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Definition
The term "transfer price allocation" refers to allocation of a transfer price fixed in a transfer price agreement.
Actual revenues are posted in the sender while
actual costs are posted in the receiver. The commitment in the receiver is reduced accordingly.
Structure
Transfer price allocations consist of one or more item(s) containing the amount or quantity allocated, along with the relevant price.
Integration
Each transfer price allocation references a
transfer price agreement. You use the document type for the transfer price agreement to determine the document type for the transfer price allocation.