Example: Stock Transfers
A straight transfer between inventory locations also needs to be represented from a profit center point of view.
Material M1 is transferred from plant 0001 to plant 0002. The profit centers involved are P100 and P200. The external price in both plants is 1,000.00.
Different values are posted depending on whether you use transfer prices according to the legal, group, or profit center viewpoint. The first example shows the postings when both FI and EC-PCA use the legal viewpoint. The second example shows the postings where the legal viewpoint is used in FI, but the profit center viewpoint is used in EC-PCA.
Posting Using the Legal View in EC-PCA and FI
FI document:
Stock |
1,000.00 |
(PrCtr P100) |
to |
Stock |
1,000.00 |
Profit center posting:
Profit center P100: |
|
1. Internal revenues |
-1,000.00 |
2. Internal change in stock |
1,000.00 |
Profit center P200: |
|
1. Internal change in stock |
-1,000.00 |
2. Delivery from profit center |
1,000.00 |
The sender profit center P100 shows a sales transaction. On the receiver side, you can see that the material was delivered from another profit center, while the values on the receiver side (P200) did not affect profits.
Posting Using the Profit Center View (Transfer Prices) in EC-PCA and the Legal View in FI
In legal valuation, the stock is valuated at 1,000.00.
In profit center valuation, the stock is valuated at 1,200.00.
The transfer price is 1,500.00.
FI posting:
In FI, only the legal valuation view is stored.
Stock |
1,000.00 |
(PrCtr P100) |
to |
Stock |
1,000.00 |
Profit-relevant postings from the profit center viewpoint:
Profit center P100:
1. |
Internal revenues |
-1,500.00 |
2. |
Internal change in stock |
1,200.00 |
Profit center P200:
1. |
Internal change in stock |
-1,500.00 |
2. |
Delivery from profit center |
1,500.00 |
This gives profit center P100 an internal profit of 300.00.
