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 process orders for stock transfers, and analyze the multiple valuation of this business transaction.

To execute this scenario, you need to have activated transfer prices. To find out how to activate transfer prices in your system, see the scenario on setting up and activating transfer prices in CO and FI.