Setting Up and Activating Transfer Prices in CO and FI 

Purpose

Transfer prices allow organizations that divide tasks among different organizational units to valuate and control the goods and services exchanged between these units.

By valuating the exchange of goods and services using transfer prices, you can significantly influence the actual success of your corporate divisions or profit centers. Especially in this context, today’s accounting systems need to be able to provide decision support that represents operational results from different points of views and using different currencies. This can be achieved using multiple valuation approaches and transfer prices.

The following is a description of the settings which you need to make in Customizing to use multiple valuation approaches and transfer prices in controlling area 1000 of IDES.

If you do not want to carry out the various steps and settings yourself, the system contains a CATT called "ZIDES_TP_BASIS". Once you have started this CATT, multiple valuation approaches and transfer prices are set up automatically in controlling area 1000 (including the settings in Asset Accounting à Customer Exits in Asset Accounting).

You can find more information about this process under .

Process Flow

You can find the data for this process under .

  1. Basic Settings for the Activation of Transfer Prices
  2. Displaying the Currency and Valuation (C&V) Profile
  3. Assigning the C&V Profile to the Controlling Area
  4. Maintaining Versions in the Controlling Area for Valuations
  5. Activating a Parallel Local Currency in FI (Optional)
  6. Activating the Valuation Area for the Material Ledger
  7. Setting up Transfer Prices in Profit Center Accounting
  8. Activating Transfer Prices
  9. Creating Transfer Price Conditions (Optional)
  10. Maintaining Pricing Procedures
  11. Setting Valuation Areas to Productive
  12. Setting up Transfer Prices in CO-PC
  13. Setting up Transfer Prices in CO-PA