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

Particularly large corporations are often divided into a number of independently operating divisions or companies that exchange large quantities of goods and services with one another.

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.

The following scenarios are portrayed in the IDES system to display the multiple valuation of logistical processes:

• Setting up and Activating Transfer Prices in CO and FI
• Running the CATT to Activate Transfer Prices
• Product Cost Planning with Transfer Prices
• Transfer Prices: Stock Transfer Between Plants
• Transfer Prices: Order Processing for Stock Transfers

In this scenario you make a standard cost estimate with group and profit center valuation. Then you analyze the settings in Customizing and make the standard cost estimate for the group and profit center valuation. Finally you analyze the standard cost estimate for the group valuation.