You use this function to analyze costs and revenues arising from transfer prices.

You can only evaluate costs and revenues arising from transfer prices using the profit center valuation. You specify this valuation in the selection screen for accessing reports. You can only specify the valuation if the parallel valuation has been activated in the controlling area.

The table below shows where you select the valuation in the reports.

You can only evaluate costs and revenues from transfer prices using the profit center valuation. The profit center valuation shows the actual costs, in addition to the transfer prices. The system does not display costs and revenues from transfer prices in the legal valuation.

You can evaluate transfer prices in standard reports or you can define your own.

To evaluate costs and revenues from the point of view of the profit center manager, choose a database profile which includes the Profit Center project view. You must first maintain the group name for the profit center relevant to the project in the project view

If you define transfer prices across subprojects, you can use dynamic selections to restrict data selection. For the data to be evaluated correctly, you must select the dynamic selections indicator in the database profile.

To ensure that those responsible for subprojects see only the costs and revenues relevant to them, you must assign authorizations at profit center level.

We deliver the following standard reports:

• Report 12TFP1: Transfer Prices: Service Recipient

• Report 12TFP2: Transfer Prices: Service Provider

If you use your own reports, you must include the valuation in the general report selection. The table below shows the required variables:

The system updates the line item records for transfer prices to the CO activities KFPP (plan), KFPO (commitment), and KFPI (actual). You can restrict the line item evaluation to these activities by means of a display variant and appropriate filters.

You cannot evaluate planned line items for the transfer price agreement unless you manage CO version 0 in profit center valuation.

The graphic below illustrates the example we will now examine.

You agree a transfer price of $5000 between WBS elements P1.1.1 and P1.1. $1000 has already been allocated. The profit center valuation shows the following values:

In WBS element P1.1.2, you plan costs of $4500 for the agreed services. The profit center valuation now shows the transfer prices, along with the costs planned.

If you are only authorized to display costs and revenues for profit center 1, the system displays the following values: