Function documentation Scenarios for Using Transfer Prices Locate the document in its SAP Library structure

Use

Since different organizations have very different aims in using transfer prices, there are a number of practical scenarios for how to use them.

The SAP system therefore supports a limited number of scenarios that you can use to reach the aims described here. Typical scenarios include:

·        Scenario 1

(Note: Only two currencies are stored throughout the system. The transaction currency is not stored throughout the system.) Consequently, the legal and group valuation methods are the most important, as is shown in the following graphic:

This graphic is explained in the accompanying text

·        Scenario 2

The structure of the legal accounting units does not correspond to that of the management structures. To be able to manage the areas of your organization according to their responsibility for profits, you need to set up separate areas of responsibility and valuate goods movements between these areas using an independent valuation approach. Consequently, the legal and group valuation methods are the most important, as is shown in the following graphic:

This graphic is explained in the accompanying text

Integration

If required, you can store the legal, group, and profit center valuation views in the material ledger.

This decision forms the foundation for how you shape your value flows in Financials. For example, if you store all three valuation approaches as in the example, the applications that supply this data (essentially the Controlling component) also need to store these approaches.

In Profit center Accounting, you can store any one of these valuation approaches, so that you can analyze the operating results of your profit centers according to the legal, group, or profit center valuation view. If a valuation approach in your currency and valuation profile contains the profit center valuation view, this valuation must also be stored in Profit Center Accounting.

In Financial Accounting, you must valuate all postings according to the legal approach. In addition, you have the option of storing either or both of the other two approaches.

In Controlling, you decide on one leadong valuation approach. This should be the valuation approach that corresponds to the your group’s management accounting philosophy  For all other valuation approaches, create additional actual versions.

 

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