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If you intend to use Transfer Pricing, be sure to observe the following conditions and limitations:
Global Limitations
● Transfer prices are limited to goods movements. It is not possible to valuate activities using multiple valuation approaches.
Limitations in Cost Object Controlling
● You can only perform group costing within a single controlling area.
● Multiple valuation approaches cannot be used for the purposes of make-to-order production for unvaluated customer sales order stock.
● To calculating WIP correctly using target costs, the operative version must use legal valuation approaches.
Limitations in Purchasing and Material Management
● Multiple values can only be transferred during invoice verification in Logistics.
● Multiple values can only be transferred between systems using the ALE or EDI interfaces.
