Organizational Units Affected By Transfer Pricing Locate the document in its SAP Library structure

In order to use transfer prices in the R/3 System, you need to store multiple valuation approaches in parallel throughout the accounting application components. Consequently, the following organizational units play an important role:

·        The controlling area represents a group of companies in which transfer prices can be used.

In Profit Center Accounting, this group is divided into areas of responsibility that act as independent units and have responsibility for their own profits.

·        If you employ cross‑company accounting, the company codes represent the individual companies, which you need to assign to your controlling area.

In each company code, material inventories are stored in individual plants. The plant represents the level at which these material inventories are valuated using parallel approaches.

 

 

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